Real estate questions answered.
Hello and welcome to my tips on investing in real estate.
I have taken the top 10 most common questions I get asked about real estate, and broke them down into easy digestible reading. Let’s get to it!
1. How do I get started in real estate?
You need to have a plan. Why are you buying real estate? Is this your primary home? Is this home for a rental? Are you investing for retirement? Are you investing for long term wealth and the tax benefits associated with real estate? Your why will guide everything else.
2. What type of properties should I invest in?
The type of property you choose will depend on your WHY. Real estate offers many options, each with its own risks. Below is a quick list of the types of real estate investing that is the most common. If you want to know more about these strategies, check out my blog post here.
Buy and hold
Flipping houses
Wholesaling
Vacation Rentals and Short-term rentals/Mid-Term rentals
REIT investing
Commercial
3. What are the current market trends in real estate?
Market trends depend on where you want to invest. Some areas of our country are seeing stronger markets than others. Take your time when researching your markets. Look for unemployment rates, cost of living, population growth, and tourist information.
4. How can I finance my real estate investments?
When it comes to financing your deals, you have SO many opportunities. It’s wise to take some time to speak to a few lenders, smaller banks, and credit unions to get a feel for what they can offer. I know several lenders and can help connect you if you need help. So reach out! I am always happy to help.
5. What are the risks associated with investing in real estate?
Like any investment, it comes with risks. The best way to mitigate risks is to have an OUT plan, cash on hand to cover hard times, and to be flexible with your strategy. Meet with a tax advisor that knows real estate. Let them help guide you.
6. Should I work with a real estate agent or try to go solo?
You don’t always have to work with a real estate agent BUT YOU SHOULD. A great real estate agent will help you make better choices, find better deals, and connect you with lenders, builders, handypersons, and more. They are worth every penny. They take all of the legwork out of the deal for you and will help you avoid costly mistakes.
7. What are the key factors to consider when buying a property?
When buying a property, I like to look at the location first. Is this house in a location that will appreciate over time? Look for things like, is the area growing? What is the average household income? Are there new businesses popping up? Do you know if the house is in a good location? Is the house in a good school district? What is the crime rate?
Then, you need to look at the condition of the house, what you are willing to pay for, and what kind of work the house may need.
You can force appreciation in real estate, but you need to be strategic about how you do it.
8. How can I find good deals in the real estate market?
Finding good deals takes time. You must learn to be patient and connect with great agents in the real estate investing world who can find deals for you. Looking for your deals on your own takes a lot of time and commitment, so if you are new to real estate, I recommend finding an agent to help you. If you need help finding an agent, I can connect you. I know many great agents! Always run your numbers and don’t buy houses that don’t fit your overall strategy and goals.
9. What strategies can I use to increase the value of a property?
When adding value to your property, it depends on what you want to do with the property. If you are flipping the house, you will need to stay current on design trends and keep the design neutral enough to attract the majority of buyers. Some listings with great design can be sold in a niche market, but I wouldn't test it out on a flip unless you are a designer or have a great eye.
There is a difference in increasing value and maintaining a home.
Adding a new roof is attractive to buyers but won’t appreciate the home as much as a new kitchen will. However, this permits no landlord to not fix a roof. Your job is to provide a safe house. Don’t be a crappy landlord. Do what is right. Always.
10. What are the tax implications of real estate investments?
Owning real estate has many tax benefits, which is one of the reasons I invest in it. You can grow your wealth by utilizing tax strategies to help build your tax-free wealth. You must work with a great CPA to ensure you do this correctly. I have a few CPAs I love, so if you need a recommendation, let me know. I will connect you.
I hope this article was helpful. If you need to go more in-depth on any of these topics, please reach out to me. I would love to help you make smart moves in your investing adventure. You don’t have to take this task on alone. I am here to help if you need me.
xoxo,
Steph
