REAL ESTATE INVESTMENT – WHEN IS A GOOD TIME TO START INVESTING IN REAL ESTATE?

St. Louis Real Estate Lawyer

REAL ESTATE INVESTING – An old Hebrew proverb that still offers value in our modern-day lives. It’s that exponential self-fulfillment journey that we all must take to end up realizing that we must invest in real estate. Sooner or later, you will understand the value of real estate investing. However, real estate investing wasn’t made for everyone, just like stock market trading wasn’t made for everyone either. Is real estate a good investment for you as a youngster in 2018?

To answer that question yourself, you must assess what your needs and expectations of an investment property are. All things considered, many investors in the real estate world have started young as they discovered the appreciating value of real estate. So, here are a few questions that can help you determine if real estate is the right investment path for you:

Is real estate a good investment in your early twenties?

Most adults, while in their early twenties, just got out of college and are entering the professional world. Subsequently, they start to experience a stable income and for the first time in their lives, they can think big. However, many fall short of expectations as most don’t know how to manage money properly and, most importantly, they don’t know the importance of investing. Most of them don’t even come close to asking themselves, “Is real estate a good investment?”

For young investors, the ability to pay off a mortgage soon is a key determinant of an investment property’s success. You must assess what you can afford and act upon it. Young investors must know that an investment property is not meant to be a dream home. In the end, it all comes down to the functionality and practicality of your real estate investment.

A few points to consider when real estate investing at an early age:

Come up with a long-term plan

A long-term plan for real estate investing is crucial. In fact, having a vision is what keeps you from straying too far from a certain path. Additionally, young real estate investors must be aware that you can’t reap the benefits of real estate investing by tomorrow. Time is your friend and it’s what paves the road to your future financial security through rental income.

Educate yourself through those who’ve done it
Simply put, by learning from the mistakes of expert real estate investors, you can avoid them at a fraction of the cost. By doing so, you can identify unexplored market opportunities and establish the right real estate investment strategy for you.

Related: Learn from the Best Real Estate Investing Books.

Save

This is the same advice that your parent or grandfather kept telling you. It stays in the back of your mind, but you don’t acknowledge it. You know it’s true. Always put aside a portion of your income.

What’s even better than saving? Have a rainy-day fund in case of emergencies to make sure not to resort to debt if an investment property needs it. This is crucial advice especially for those looking for how to start a real estate business.

Be responsible with your credit

This is a must for wanna-be real estate investors, why? Well, if you wish to take a mortgage and you have a terrible credit score, chances are you’re going to get denied that mortgage or even worse, get high interest rates that you forcefully have to accept because you simply don’t have a choice.

Is real estate a good investment for you if you can’t afford what you want?

There are two ways to approach this. You can either wait until you can afford what you want to buy or adjust your expectations and invest in what you can afford. The second option is always more recommended, as buying an investment property and waiting is far better than waiting to buy an investment property. Additionally, there are many fields that you can invest in with real estate without owning a property yourself.

Let’s take Real Estate Investment Trusts as an example. With REITs, you can pool your cash and invest in them for a certain profit. What happens is that your base savings are getting bigger and bigger instead of sitting in a bank account meaninglessly.

Another lucrative option for you is real estate wholesaling. What happens in real estate wholesaling is you, the real estate investor, contract an undervalued property, and in return, you find an interested buyer for the property, and voila! You make your money off the price difference. If you’re limited on cash and not sure where to invest, both wholesaling and REITs are considered great intros on how to make money in real estate for any beginner real estate investor, especially the young entrepreneurial type! The question remains not, “Is real estate a good investment for you?” But, “What real estate investment strategy is right for you?”

Is real estate a good investment if you’re illiterate with real estate?

If you consider real estate investing to be a jungle you can’t navigate through, there are multiple options for you! Partner up with someone in the field. Or even better, read about real estate. The more you read, the more you’ll know. With today’s ever-growing technology, you can find anything you need online through a simple Google search.

In addition to that, inexperienced real estate investors have the option to utilize the technology used by expert investors. This plays a major role in guiding you all the way to a destination of owning income producing assets. One major player in the field is conducting a real estate market analysis through a proper investment property calculator. You might say, “I don’t need that.” However, sooner or later, you’ll resort to using it to emphasize the profitability of your investments.

In any case, an investment property calculator can tell you all the real estate analytics you need to determine how lucrative of a deal you’re getting before diving head first. Additionally, you can find the real estate comps associated with your property to better understand the nature of any real estate investment in the US housing market. Mashvisor offers a top-of-the-line investment property calculator with irreplaceable qualities to get you from A-Z with your future real estate investment properties.

Is real estate a good investment for you now?

“The best time to buy a home is always five years ago.” – Ray Brown.

Be that as it may, you should always find opportunities to invest whether in residential real estate or even commercial real estate. Always follow the footsteps of expert investors and invest in real estate. What good is it keeping a bunch of green under your mattress? Invest your hard-earned cash in an investment field that can protect your value until the last cockroach dies!

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