Real estate investment, just like any other business, is about experience and learning what the long time pro’s do to keep making money. But unlike other businesses, in real estate the learning curve can be costly. So learning lessons from seasoned professional’s advice is the way to learn before you lose due to a poor decision. Here are 6 tips that have been used and proven over the years.
1-Research the curve on the property and the area you are considering for your purchase. Know if the market is on the rise or headed down. You need to know which part of the curve represents your target area to determine if it is the right time to invest there.
2-Stay ahead of the curve, look at areas that are about to rise and are located near an area that is already on the rise. This allows you do get in at for a lower cost and ride the increase.
3-Know your market and what they are going to be looking for. Marketing and designing for a young executive is much different than a growing family. Make sure you are offering them what they want and not just what you want to sell.
4-Know your entry costs before making a purchase. Fees, charges and carrying expenses can vary greatly from state to state. Know the numbers and factor that into your budget so that there are no surprises and your investment is profitable.
5-Look at the investment as long term unless you are planning a quick flip. Real estate is not an easy asset to liquidate so understand that your money will be tied up for a longer period of time in order to make you a profit.
6-Know what it is going to cost you to if you sell an investment property for a profit, don’t forget to account for capital gains taxes. Be certain that if you are selling for a profit, it is still a profit after the taxes are paid. If not then you did not budget correctly and you need to rethink you model and strategy before your next purchase.
The Phoenix area real estate market is currently growing at a great rate. It is the perfect time for new investors to get into the market and learn the industry. Using these tips will help to insure that your first purchase is successful. To learn more about the market and some of the great investment properties available currently visit www.azrealestatewholesale.com. The team of professionals can answer your questions, help you to decide what area of town will work best for you and what type of property that you would like to invest in. Relying on assistance from these professionals is a great way to learn the Phoenix real estate investment market.