5 Important Factors for Investing in Real Estate
Investing your money in real estate can be an incredible way to give yourself and your family a liquid asset. There’s a lot to be said for building equity and creating financial stability through property ownership. After owning one property, you may decide that you’d like to add a few more in order to make a bigger investment in the overall real estate market. There’s a lot to think about before signing any paperwork. Here are five important factors to consider before investing in real estate.
Where are you investing?
As the saying goes, “location, location, location!” A conversation you need to have with yourself or your partner before taking tours and making other considerations is where you want to own property. Are you going to be living on this property or just managing it? How close does it need to be to your current location in order to make this a viable business decision? Will you ever be using this property as a vacation home?
Depending on what your plans are, it might be worth considering Ashe County in North Carolina as a sound real estate investment. Ashe County has a lot to offer in terms of year-round outdoor activities. It’s located in a lush, mountainous region of North Carolina. Consider one of the log homes for sale in the area as a vacation home or a hotspot you can own and then rent for a reasonable price to local families or other vacationers. Wherever you choose to own, make sure the area speaks to you and others if you’re planning on renting.
Are you investing with the right person?
Investing in real estate is a big financial decision — a decision you might not be making by yourself. It’s very important that you’re investing with someone who’s as invested as you are in your property. Look for red flags before signing the final agreement.
For example, are they avoiding putting their name on important documents? Is this a decision they’re forcing on you or is it actually what you want? It can be difficult to look at the situation objectively, especially if a loved one is involved. Put aside your feelings at this moment and make sure you’re investing with someone who is willing and able to be in it for the long haul.
Is it the right time to invest?
Before looking up “how to invest in mortgage-backed securities,” consider if now is the right time to be investing. You can do this by looking to experienced financial executives. Mark Wiseman is a global investment manager and business executive who’s intimately familiar with rising and falling investment markets.
You might be feeling hesitant about buying into the market right now, because of what the pandemic has done to the economy. Wiseman encourages investors to think long-term. If you see yourself owning this property for many years, it will almost assuredly appreciate in value over a long period of time. However, if you’re hoping to make money quickly off of this property and then sell, now might not be the time to enter the market. You may also want to look into how to invest in mortgage-backed securities, which can be really profitable.
Should you go with a turnkey provider?
If you’re buying a property that you’re planning on renting out to others, think about how much work you want to put into the property. Do you want to do renovations by yourself? Are you planning on doing the daily upkeep? If your plan is just to own, but not necessarily manage the property, it might be best to work with a turnkey provider.
What’s your exit strategy?
Before you get yourself into anything, you need to know how you’re planning on getting out. This isn’t a pessimistic view, it’s simply a safety valve. Think down the line to when the property will no longer be a viable renting option and discuss this with your agent or turnkey provider. You want to make sure you’re making money off of the property in the long run, and not being dealt an overall loss.