Three duplexes behind a gate.

How to Get Ready for Your First Real Estate Investment

If you’ve been paying attention, you probably already know that real estate is a phenomenal investment opportunity. I’ve blogged about it before, but real estate is valuable, highly sought-after, and rarely depreciates in value.

Even if the value of your investment depreciates over time, you can still consider it a positive asset because it’s still supplementing your income. No other investment is like this! If you have the means, consider beginning your investment journey in real estate.

I want to help you make the most of your investments. It’s why I offer so many complimentary resources for investors and homebuyers. Today, I want to talk about the best way to get ready to make an investment. Here are three things you need to take care of to begin your investment journey.

Analyze Your Finances

Four stacks of silver coins.Financially speaking, are you in a good place to invest right now? In particular, you need to examine your credit score, annual income, any assets you own, and any outstanding debts you’ve accrued.

If you’re a first-time investor, you’ll want your credit score as high as possible. This will guarantee you better rates on a conventional home loan or mortgage.

Create Your Budget

After carefully reviewing your financial situation, it’s time to plan. How much money do you have to spend on a property? How much money are you looking to make per month?

I recommend using the 1% rule here. Basically, you should get back 1% of your property’s overall value every month. For example, if you bought a $100,000 home to rent out to tenants, you should make around $1,000 a month in rental payments.

Do some research here, because you’ll likely be paying for more than just your mortgage. Take into account HOA fees, pest control, insurance, maintenance fees, and property tax payments as well.

Begin Searching for the Perfect Property

Woman doing research on her computer.I can help with this. Here are a few great investment properties in the Lake Norman area. Whether you’re looking for a single-family home or a duplex to rent out, I have the resources to connect you with hundreds of excellent investment opportunities.

Take a look at the local communities and neighborhoods around the Lake Norman area. Research the area and search for other rental properties nearby. This will give you a good idea of average rental prices in your target community.

Any Other Questions? I’m Here for You

Investing in real estate is a fantastic opportunity, but it does require a fair amount of research. If you need any help navigating the waters of real estate investing, or anything else about the Lake Norman area, please don’t hesitate to give me a call .

 

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