The real estate market continues to be one of the most stable and profitable options for investing in the United States. Add in the growth of virtual tours and the ability to complete real estate deals remotely and it is no surprise that Forbes projects this market to continue strong through 2022.
Those who are looking to dive into this market are wise to think it through and develop a plan before they begin. Three tips that can help to better ensure success include the following.
Tip #1: Do your due diligence.
Dig into the market and get a good idea of how it works. What are properties selling for in your desired area? What about if they are in poor versus good condition? What types of things in that area really make properties turn over quickly: a new kitchen, a great outdoor space, additional bedrooms? Is there a homeowner’s association in the area and if so, how strict are the requirements and what are the fees?
Get this information in order before diving in to help better ensure you know what you are getting into.
Tip #2: Have an exit strategy.
Real estate investment guru Mindy Jensen has been in the business for decades and written books on how to make the most of this market. She recommends not one, but multiple exit strategies before getting into real estate investing. One example: choose a property that can offer multiple investment options. Perhaps you could flip it and sell it or keep it and rent it out?
Tip #3: Know the legalities.
Every area is different. Federal, state and even local rules and regulations can impact a real estate deal. In fact, the Forbes article noted above predicts that one of the major influences through 2022 in real estate is the growing complexity of local zoning and permitting laws. Get a local professional to review the deal before finalizing any real estate transaction to better ensure you understand the full impact of the paperwork.