Helpful Tips For FirstTime Investors

Dated: 08/22/2014

Views: 3611

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.
Blog author image

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

5 Financing Options For First Time Home Buyers

As a first time home buyer, you may think you’ve only got a handful of financing options to choose from when selecting your first property. However, there are actually several options to choose

Read More

Rising Inventory Causing Decrease In Bidding Wars

According to Seattle-based real estate brokerage Redfin, lower-priced properties in Denver can still garner a high amount of attention, but overall, the days when a home in metro Denver would list

Read More

Looking For Homes In Denver Make Mortgage PreApproval Your First Step

So you’ve decided to start looking at homes in Denver. You may think the first step is to hop on the MLS and see what’s available, but do you even know how much house you can afford? That’s

Read More

Despite Lower Interest Rates Affordability Issues Remain In Denver

While falling mortgage rates have put some energy back into existing home sales, new home purchases are taking a hit. According to Robert Dietz, chief economist at the National Association of

Read More