Mastering Real Estate Investing
We hear stories daily about the U.S. real estate market and questions that refer to whether or not the time is right to enter this investment opportunity in your hometown. Let me tell you, it's not a question of whether to enter the market, but when to enter. And your personal intentions will determine your timing.
There are a many questions you need to consider but real estate investments should definitely be a part of any diversified portfolio. In my book, How to Buy and Sell Real Estate for Financial Freedom, I outline a number of strategies you need to become familiar with before making your next real estate investment. When you are looking to purchase real estate, you need to concentrate on the property's resale potential rather than its age. Just like any other investment, there isn't a definitive answer but rather it's a personal decision based on a number of factors; among them cash available, your intention for the property or your time frame. This is, by no means, a comprehensive list, but it does represent a number of personal questions that need to be investigated before making any purchasing decision.
Is new construction better than existing homes? New homes will most likely cost you a bit more because building supplies have increased recently. I recommend that in order to make a knowledgeable decision, you should go out and look at both sides of the market. Take a look at what's available in your area, both new and existing, and then make a decision. And just like we tell you about other investments, never allow your emotions to guide your investment decisions. Don't fall in love with any property. If you, or your spouse, become emotionally attached to a property, your ability to make rational decisions is hindered. If this happens to you, take a few moments to step back and sensibly examine the deal. Emotional attachment will most likely cost you money. You'll either pay too much for the property or overlook expensive problems that could cause future problems.
If you have questions concerning the real estate market in your area, make sure you educate yourself. Determine what you'd like to do and establish some short- and long-range goals to help guide you in the proper direction. If you are going to be successful in the real estate market, you will need a strategy, just like you would for any other investment. Then you must also be open to making changes that will help you adapt to the changing markets in your part of the country. Education is the key; get a book, take a class and ask your questions. The more you know, the more successful you'll become.
Originally published in the Outspoken e-newsletter.