Real estate investing can be tricky for a first time home buyer or investor. If there are huge profits to be earned, there is also the risk of investing in the wrong property and suffering a major loss. To minimize the chances of making a bad investment, National Realty Investment Advisors, LLC brings a 10-question guide to buying a home or investment property.
Ask yourself these 10 questions before embarking on a real estate investment. For your convenience, we have also answered them!
Should I buy a new or old house?
Buying a newly built apartment and investing in an old townhome brings entirely different challenges and considerations. An old home may cost a little less but it brings additional expenses with the passage of time. While a new property doesn’t include such issues, it does cost more up front and requires other complications.
Where should I buy my investment Home?
Location is one of the biggest factors when purchasing real estate. For instance, the perfect condo located in a dangerous neighborhood would not be considered a wise investment to make. Or if you’re just looking for an investment property to generate some rental income, consider purchasing a small apartment in an affluent neighborhood. That will typically generate a good return.
How much can I afford to invest in my new property?
According to top real estate investors, entering the real estate market with refinancing in mind is a bad idea. A financial cushion is important to fund your investment needs smoothly. If you think your present expenses don’t allow you to afford that duplex, than it is best to wait.
What type of residential property do I need?
Do you need a second home to earn additional income or just require one for your growing family? Property needs can vary from buyer to buyer, and this determines location, size and various other details. So, first decide what type of property you need before starting to look.
Is it the right time to invest in real estate?
Your existing monetary obligations will dictate whether or not you are ready to take on another big commitment. Are you planning to start a family? Will your young children head to college in a couple of years? Investment specialists at National Realty Investment Advisors, LLC think such factors are vital to consider when making a smart investment decision.
Do I have the time to manage real estate?
Some working professionals and business owners jump into the real estate industry but are never able to dedicate the time it requires. If flipping real estate requires dedicated efforts, rental properties also need time for rent collection, property maintenance, and other standard home ownership responsibilities. Joining hands with a project management firm like NRIA, can help lessen your responsibility.
Should I buy for turning a quick profit or invest long term?
While some property investors are looking to make a quick profit by renovating and flipping a home, others are interested in long term profits. Decide your real estate ambitions and create an investment plan depending on it. This will also help you choose what type of property to invest in. And yes, don’t forget to create an exit strategy.
Should I buy property on my own or hire a professional?
If you are buying property for the first time, we don’t recommend buying on your own. Property buying is a complicated process that includes research, market insights, paperwork, and other technicalities. An experienced realtor can guide you through all the details and make sure you don’t suffer a loss.
Do I have enough knowledge about the real estate market?
Every industry requires a special set of insight to generate income and profit. The real estate industry is no different. If you don’t already have industry knowledge, than purchase the best books on real estate investing. While going through them, join local investor’s club for getting an idea about present market dynamics. This will tell you whether or not you are ready.
Do I know about new real estate investment plans?
Buying a property to sell after a couple of years is not the only way to make a profit with real estate. New investment plans minimize the total investment required as well as potential risks. NRIA’s “cash recycling” investment system is a proven way of generating long term profits. Visit nria.net/about-us to learn more about NRIA’s unique real estate investment plan that guarantees a newly built pre-rented luxury townhome with tax benefits for only a $11,900 cash-in investment plus 100% financing.
These are surely not the only questions you need to answer befor making a wise real estate investment. As we said, it is best to keep an experienced professional by your side to make the right investment decisions.
Want to own a home in Philadelphia without for a minimal investment? Call 201-210-2727 and speak with the NRIA team to learn about current real estate investment opportunities.