Investing in real estate can be a safe bet if you know what you are doing and make the right moves. However, this is not something that a first-time buyer is going to get right. There’s no instinct for this sort of thing – you need lots of experience and a really good plan if you want to make a worthwhile investment.
That being said, there are some tips that experts give to those new to real estate to help speed up the learning process. We’ve learned some of these things the hard way by dealing with West Palm Beach real estate but, hopefully, your journey can be a little less painful.
If you follow the five most important tips we’ve laid out, you’ll avoid making the biggest and costliest mistakes in your first couple of years as a real estate investor, landlord or as a new homeowner.
You need to have something to fall back on
While it may seem very romantic to just jump into the real estate business and start giving out your business card, this is an incredibly risky move for someone with no or limited experience. This is why most experts recommend that you keep your day job for a while longer and work on growing your savings account before you start investing.
Make the next few months all about saving up as much money as you can, researching the real estate market, and networking.
Create a list of what you are looking for in a home
This is the part of the equation you can deal with while you are still in your “saving up” phase. If you are just looking for a new home, write down everything you’d like the house to have – two bedrooms, a sizeable yard, proximity to good schools and so on.
If you are looking to invest and resell or rent out the place to get a steady income, you’ll want to consider the location, neighborhood, local community, interior design, etc. You’ll need to consider a broader range of tastes and preferences when flipping or renting a place, so it pays to know all the latest market trends.
Get the right realtor for the job
You can’t do this alone if you have no connections and only a basic understanding of the real estate game. This is why you should consider finding a good realtor to help you get a property that ticks off all your boxes and still fits in your budget. Now, West Palm Beach real estate options are varied and plentiful, particularly if you find the right people for the job, and we know that not all locations will give you as much room to pick and choose.
This is why it’s important to stick to the basic items on your list and make sure that your realtor understands exactly what your priorities are.
Make connections with local handymen
A house, no matter how great of a condition it’s in when you buy it, will require regular maintenance if you want it to keep most of its value over the next few years. This is why every buyer, be they a new homeowner or someone looking to flip the property, should get in touch with all the local handymen.
You’ll definitely need to find a good plumber right off the bat, as well as electricians, home painters, and cleaners. A good moving company is definitely a good contact to have, while interior designers and the like are less of a priority.
Don’t be impulsive
Perhaps the most important thing to keep in mind is that you are not in a rush. Yes, sometimes a good deal will have a ticking clock attached to it, but don’t let your emotions grab the wheel. Think about all the little details carefully, weight the pros and cons, and don’t go for a mold-infested cabin just because you really like the cute little fireplace.
All this may seem fairly simple at first, but the devil’s in the details. Once you start looking at properties you’ll realize just how difficult investing in real estate can be. However, as long as you keep your wits about you, follow a plan, and make calculated risks you’ll quickly get a hang of things.