What are the things you look into when trying to invest in real estate?
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What are the things you look into when trying to invest in real estate?
I would recommend getting yourself educated on real estate investment first, start off by knowing what real estate is all about, calculating the expenses of renting real estate, real estate taxes, interest, insurance, upkeep, maintenance, broken appliances, etc. Estimate how much time it will take you per year to do this, then multiply those hours by the amount you could get from working instead. add that number to the other costs. Then subtract that from your gross income. Most people never get that far because they can’t mentally wrap their heads around an abstract concept like portfolio construction, and can’t understand why anyone would not want real actual property. You should talk to a couple of other real estate people. I think that would be a better idea on how profitable a place will be. Investing in real estate is a good thing, there are less chances of you going into a loss.
The best way to get started is to learn more about it. Get some books and videos on real estate investment to start with. There are plenty of well reviewed ones on Amazon and also educating videos on youtube, and maybe take a course. Then build your own investment spreadsheet. It will teach you how all the key ratios work and how thin the profit margins are for your level of investment – at least initially. Try to make contacts with other landlords. They could introduce you to other good contacts like banks, mortgage experts and contractors. At that point, if you are still into it, you should go for it. Don’t be impatient to build up a portfolio too fast. Life is a long game. If you try to purchase a property every five years or when the prices are right, not inflated then you could be in a position to retire in your 50s.