Real Estate Investing Tips You Can Use Today
There are a lot of people who want to use some of their investment money to jump into the real estate investment market as BRH or RTO (Rent to Own) owners, but are often intimidated because of the complex ins and outs of how real estate investing works or because they just don’t know how to get started. Investing in residential real estate is quite a bit different from bonds, stocks or financial vehicles.
If you’ve been burned by the stock market, you might also be cautious about putting money into anything which isn’t backed by the government. It’s true that if you have money sunk into the real estate market, you will get an unpleasant surprise if something like the 2008 housing downturn hits home, and it turns out to be worth less than you paid for it (particularly if you’re at mortgage renewal). However, those events are much rarer than similar events in stock and commodity markets. In general, people who invest in real estate see their properties appreciate over time.
That is why we were able to put together a list of successful real estate investing tips for people who view the rent-to-own process as an investment and want to make a profit over time, but want something more substantial than what savings accounts and money market accounts will do for them. Take a look at some of these steps which have worked for many others in the Real Estate Investment market.
4 Solid Residential Real Estate Investing Tips:
Form a bank or mortgage broker relationship
HOS Financial has established a strong reputation for connecting real estate investors with investment opportunities that bring security and trust at interest rates which represent a value. Whether you use HOS Financial’ s referred mortgage lenders or a different broker, we recommend you do your research and see how other investors have fared with their brokers. HOS Financial has a wealth of references that will be happy to share their experiences in the RTO and subsequent underwriting process with you.
Choose the right areas to search for properties
Sometimes people looking for a rent-to-own investment property think they should start searching in the area near where they live. However, sometimes the best investment properties are in other parts of your city – or even in another province. Remember, when you buy any Rent to Own or BRH investment property in a remote location, it is important to have solid relationships either with a property management company or with service providers who can take care of any problems should they arise. Your realtor can help connect you with quality property management companies or service providers such as electricians and plumbers local to the property.
So if you’re not local to a particular city, you’ll want to talk to a realtor on the ground and do research on your own, looking into trends in real estate values in that city. You’ll find that market values act significantly different in different parts of Canada – and sometimes even in different parts of the same province.
Don’t start without a plan
Remember that investing in real estate is a business – and so it needs a business plan. If you want to be your own boss when it comes to growing your real estate income, you have to manage yourself. Set realistic targets for a year from now, and then two, three, five and ten years. There are a lot of templates out there to help you put your plan together.
Join a real estate investment club in your area
Run a Google search or look on Facebook for a real estate club in your area – Yahoo Groups is another way to find these investors. These are great places to network with other people who are already making money in the sector where you want to invest. It’s not really a competitive situation because there are so many properties out there. Also, people who have already made a lot of money in the market will enjoy talking about their successes, and you can pick up the sort of useful tips real estate investments for your future can come from.