Before you sign on the dotted line--STOP! And ask yourself:
- Am I investing in property that guarantees a steady cash flow?
- Do I know exactly what the appreciation/depreciation rates are for investment properties in this area?
- What are my financial goals? Will I need to keep this property for several months or several years to achieve my desired results?
- Do I have plans in place if certain economic factors delay my investment goal?
Although you might think you unexpectedly stumbled on the bargain of a lifetime, you could be stumbling right into a mess if you don't have all facts about that property. You also need to develop alternative plans in the event the real estate market becomes more unpredictable.
Real Estate Investing is not Simply Buying a Home
Unfortunately, investors new to the business sometimes make the mistake of what professional investors call "emotional buying", or purchasing a property because they "like" it. Instead of considering a property solely as an investment, a new investor might eyeball a property much like prospective home buyer would. The newbie would not think about the salability of the property but would focus more on how nice it looks. This is a definite investment no-no! Always research other aspects of the property before deciding to purchase it as an investment, such as neighborhood, local property values and certain population demographics.
Real estate investors only make money when they know how much they should spend for a property. And that's where our professional property management team can help you determine whether your investment choice would be profitable or a bust.