Have you ever wanted to invest in real estate but you just had no idea how to begin? You have most likely heard many positives and negatives relating to investing in property in your city. The #1 positive aspect is a steady flow of income from your property. The only way to obtain this is to keep your costs low, maintain your property efficiently, and keep it rented consistently. There are a number of myths related to investing in real estate and I will break them down for you.
1) You Need Money to Invest in Real Estate
Yes you do need money but you do not necessarily need your own money. With some passion and excitement, you should be able to find financing through family, friends, business associates and even other investors.
2) You Must Be Handy
Things break, it’s that simple, but you’re not creating a new career for yourself. Be great on the phone and negotiating contracts, but find people who are good at what they do and have them work for you.
3) You’re Going to Get Screwed on Rent
If you maintain a respectable property and have the right people renting from you, this includes obtaining credit reports, background checks, and checking references, you should be extremely successful in collecting rents.
4) Your Investment is Going to Get Trashed by Tenants
What you have to remember is that renters do now own the property, and will act accordingly. You can do your best to find the cleanest and most responsible tenants possible, but the sheer fact that damage will be done regardless of how clean your tenants are should be expected. Protecting yourself with sufficient insurance and security deposits will help to subsidize repair and cleaning costs.
5) There Are No Good Investment Properties Left
This is a flat lie, because there are properties everywhere. In every section of each city, there are possible rental properties because everyone needs an affordable and clean place to live. If you live by notion that affordability and cleanliness create the best equation for profitable renting, you will be successful in this business.
If you are looking for a fantastic investment property in your city, feel free to contact me and I will be more than happy to assist you.
Harry Norman, Realtors