Helpful Tips For FirstTime Investors

Dated: 08/22/2014

Views: 3487

With the Denver real estate market rebounding nicely, many potential investors are thinking of taking the plunge. Here we’ll examine some very helpful tips from realtor.com that highlight the basic dos and don’ts for anyone thinking of getting into the real estate investing game.House Investment 300x262 Helpful Tips for First Time Investors1. Investing is a numbers game.

Buying property as a home for you and your family is an emotional experience. The opposite is true of investing, which is about only a few key metrics: what you can buy the home for, what it will cost to rehab it, and what you will sell or rent it for.2. Settle on your strategy.
Decide early whether you want to be a rehabber, a buy-and-hold investor, or another business model such as a flipper or wholesaler. Once you know what you want, you can act accordingly. In general, the longer you hold a home, the more value you will extract from it.
3. Don’t get overextended.
People run into trouble when they invest too much in the beginning, thinking they can recoup quickly. Start small and don’t invest money that cannibalizes from your current savings plans. Real estate investing should be a supplement to your existing plans, not a replacement. Later, if you have great success, you can always reevaluate.
4. Reach out to others.
There are a great many investor groups available online and in person. You can use sites like Meetup.com to connect with other investors. There are also online options such as investor forums.
5. Build your team.
If you are planning just a single investment, you probably only need a realtor, lender, accountant and lawyer.  You may want to get referrals from people you meet through investment groups. It’s important to choose people who have experience with real estate investment and can provide you with relevant advice.
6. Select your targets with care.
Choose properties that are low maintenance and have a wide appeal. Finding an investment property isn’t about your personal taste. Avoid properties with odd room layouts or with high-maintenance features such as a swimming pool or a large garden.

Carla Winter - Raymond Selix

Ray and Carla have been working as a team since 1995. Carla’s extensive knowledge of the Denver area real estate market not only includes over 35 years as a Real Estate Broker Associate but also in....

Latest Blog Posts

Neighborhood Spotlight Castle Rock

While it’s experienced a tremendous amount of growth over the past several years, Castle Rock has somehow managed to keep that small-town feel. With a variety of independently owned shops,

Read More

Pace Of Resale Price Gains Slowing In Denver

For six consecutive months, year-over-year average gains in home-resale prices across metro Denver slowed slightly in July from the previous month's pace. However, the average resale prices in

Read More

20 Best Places For Families In Colorado

Washington, D.C.-based financial analyst site, Wallethub, recently released its report on the 20 best places to raise a family in Colorado, and you may be surprised at some of the contenders. The

Read More

House Prices Cooling In The Mile High But Inventory Remains Low

According to a monthly update from the Denver Metro Association of Realtors (DMAR), metro Denver’s heated housing market continued to show signs of cooling in August, with single-family home sales

Read More