July 17, 2020 09:40 PM UTC

Advice for Real Estate Investors

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• by: Phoner

Real estate is a popular way for people to invest their extra savings. There is no one “correct” way to invest in real estate. What works for one person may not work for another. Whether you are currently investing in a real estate, or you aspire to someday, it is always wise to get advice from other successful investors in the field.

Single-Family Homes

Single-family homes typically appreciate better over time than multi-family units. The majority of renters prefer to live in a house rather than a smaller unit if they can afford it. If you invest in a single-family home, you will need to market it to get renters. Property owners will often send out postcard marketing real estate to attract the right tenant for the property.

Growing Neighborhoods

It is a good idea to search for properties in growing neighborhoods that will attract families to rent. Investors will typically earn higher profits in emerging neighborhoods than other locations. Another advantage of buying in developing neighborhoods is that they often offer tax incentives to buyers.

Crime Rates

Before you purchase a property, it is a good idea to research the crime rates in the neighborhood. If the area has a high crime rate, it can be difficult to find tenants that are willing to rent in that location. You can filter for crime rates on a home search map and look for areas that have lower crime rates before deciding where to buy rentals.

It is great to get advice from other professionals, but just be aware of the source and their motivation. For example, a financial advisor may counsel you not to invest in real estate because they will not get a commission from it. If a stockbroker does recommend you invest in real estate, they will most likely suggest a REIT that they can make a commission on. It is wise for aspiring investors to do their research in regards to real estate.