Real estate investing is an attractive option to many for good reason. It can be a solid source of passive income, highly profitable and extraordinarily rewarding. However, achieving success is not as simple as it may sound and you should do thorough research before deciding to buy your first property. Here are some of the most effective ways to make your first real estate investment a simple success.
Work with the Right Real Estate Agent
Investors have different needs than most buyers and are looking for different features in a property. For this reason, property investors should work with a real estate agent familiar with investing when looking to buy their first property. A specialized agent will work with you to build portfolios of the right properties for your needs. Whether you’re looking for an apartment, a townhouse, a starter house, or luxury homes, a real estate agent will help you identify your needs and point you in the right direction. Once you and your agent have identified the right property for you, it is important to properly title and survey the property with the help of land surveyors.
Hire a Property Manager
Property managers can be hired to handle many aspects of owning an investment property for you. They often do many of the day-to-day tasks such as collecting rent, interviewing tenants, responding to maintenance requests and more. Hiring one can be an extremely valuable investment, although it is an important decision that begs careful consideration because they are an additional expense that will affect how profitable your properties are to you.
Understand the Legalities
Renting a property out to a tenant carries a certain number of legal obligations on your part. Laws governing landlords and tenants vary widely by country, state or jurisdiction. Be sure to do your research and understand what both you and your tenants can or cannot do. Stepping outside the boundaries of the law can leave you liable for lawsuit. Have an attorney draft the lease that will be a binding agreement between you and your tenants.
A good way to get started with a simple property investment is to just rent seasonally. Many locations have a large demand for seasonal residences, whether vacation houses by the beach or college apartments during the semester. A seasonal rental property will only be occupied for a certain time and can be less complicated to manage than a year-round residential property. This makes them a good place for investors to get started.
Your first property as an investor will always be a learning experience. You will make mistakes and discover what works. But by doing your research and knowing some key tips about real estate investment in advance, you can up your chances of success.