Whether it’s your primary residence, a vacation home, a long term investment property, a rental property or a home you plan to buy, fix and sell again, investing in Real Estate rocks the investment arena for building wealth. Proper planning, preparation and management is invaluable in allowing you to participate in Real Estate investment wealth building whether your plan includes holding, a quick sale or renting.
Investing in Real Estate – WHY
Ask my 21 year old son and he’ll tell you what his mom thinks about investing in Real Estate. He’ll say, “Yes, mom, I know if you had to do it all over again you’d invest in Real Estate at my age when you got your first job out of college” He’s right, that’s what I preach to him. Two things; contribute to your 401K to the maximum your employer will match of your contributions (that’s free money from your employer and will be the only time you’ll ever get free money from your employer) and buy Real Estate. Start when you’re young to build Real Estate wealth. I only wish my parents issued such wise recommendations to me when I was 21!
“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” -Franklin D. Roosevelt
Investing in Real Estate Young
Fair Market Value or Less
So much about investing in Real Estate is purchasing a good property at fair market value, which holds true if you’re buying your first home or investing. This gets you off to a great start. If you’re able to purchase at less than fair market value, this can be even better, however just being able to purchase at bargain basement prices, doesn’t ensure a good, solid investment if you didn’t complete your local market research (discussed below).
Local Market Research Know How
Real Estate will always be local, as what the Real Estate market is doing here in Coral Springs, Florida can certainly differ from other nearby cities of Parkland, Tamarac, Boca Raton and down to Miramar of South Florida, for example. Due diligence is necessary to make sure you’re not simply buying a property at what seems to be a really good price when you later discover that it’s anything but a castle located in a less than desirable area. What area are you targeting? What makes it a good area? What are the trends indicating whether the prices are expected to to do over the time period that you plan on holding the home if it’s going to be your primary residence or a long term buy and hold investment property? Or how has the Real Estate in the area held its value? If it’s going to be a rental property, you want to make sure you’re buying in an area where you can anticipate price appreciations and/or steady demands for rentals. Your reason for purchasing may be for fixing and selling a property; what is the market showing you once you’ve completed your updates to the property? You need to have a Real Estate Agent on your side who knows the local markets to advise you in a neighborhood that you may be targeting. They know what’s selling and for how much and how fast; critical, needed details in order for you to make the right investment decision. Getting to know the local market where you anticipate making a Real Estate investment is a must.