Real estate is the industry that has made many people millionaires. However, there are plenty of risks in real estate investing that have led to many people losing huge amounts of money. When looking for real estate investment opportunities, a property investor ought to be very careful. So, how do you ensure that you’ll be making money with real estate? Finding safe investments with high returns in the real estate market is key to being successful in the real estate business.
Here are some tips on how to find safe investments with high returns.
Related: 5 Risks That Come with a Rental Property and How to Mitigate Them
1. Put Your Emotions Aside
When buying property, people often listen to their heart instead of looking at it logically. It is perfectly fine if it is going to be your residence for many years to come. However, when seeking safe investments with high returns, never let your emotions affect your decision. Approach it as a business investment and negotiate logically to get the best possible price. You should not acquire an investment property just because you admire the scenery. There’s more to selecting an investment property than its appearance. There are many important figures and real estate metrics you need to take into account. Logic and reason are what should drive you when selecting an investment property, not emotions.
2. Do Your Homework
Finding safe investments with high returns requires that you have good knowledge of the real estate industry. There are many different types of investment properties and strategies that one can choose to pursue. To be able to find the best investment properties that would help you achieve your goals, you need to do some research. You can’t invest in something you don’t understand and expect to succeed. You will need to learn about real estate investing before taking the plunge. Accumulate as much knowledge about real estate investing and the real estate market as possible.
There are many sources of information out there on real estate investing, both free and paid. Be sure to use Mashvisor to learn more about investing in real estate. With the right knowledge, you increase your chances of finding safe investments with high returns.
3. Work with a Real Estate Agent
Another strategy you can use to find safe investments with high returns is to seek guidance from real estate experts. It is important to hire the right professionals when buying an investment property. A real estate agent will save you effort and time in finding low-risk investments with high returns since they usually have experience and in-depth knowledge of the real estate market.
By working closely with a knowledgeable real estate agent, you will be able to get timely information on listings that are yet to hit the market. The agent will also guide you through the whole acquisition process, including negotiation. Therefore, developing a good relationship with an agent will put you ahead of the competition and help you avoid unnecessary mistakes that could be very costly. It is important to ensure that your real estate agent is qualified and understands your target real estate market.
Related: Working with a Real Estate Agent: What Investors Should Expect
4. Look at Many Investment Properties
Finding safe investments with high returns is basically a numbers game. The real estate market is full of both good and bad investment properties. You need to take your time and look over as many available listings as possible. It wouldn’t be wise for you to pick the first investment property you find, even if it seems like the best one for you. By doing this, you are likely to fall for a bad deal. You may end up purchasing the property at a higher price than its actual value. To avoid this, ensure you have a good understanding of the local housing market before you make an offer. Look at as many investment properties as possible in your target location. It is only after exploring numerous properties that you can pick the best available offer.
5. Make Use of Real Estate Investing Tools
Thanks to technology and the internet, there are several real estate investing tools that you can use to find safe investment properties with high returns. Mashvisor has several analytical tools that investors can use to find safe investments with high returns in the US housing market. The investment property calculator is one of these tools. Mashvisor’s investment property calculator is one of the best in the market for finding the best real estate investments. It makes your investment property analysis process quick and accurate. You don’t have to spend long hours looking for a safe and profitable investment property. All you have to do is to put in some basic data and the calculator will do the rest.
Related: 8 Must-Have Real Estate Investment Tools
6. Inspection
Every location has both good and bad income properties. One way of ensuring that the properties you acquire are safe investments with high returns is through inspection. Before buying any investment property, hire professional building inspectors to check the condition of the investment property. If the property needs a lot of repair and maintenance, this could significantly eat into your profits and cash flow. This is not to say that purchasing investment property that is not in its peak condition and renovating it is always bad. Just ensure that you’re aware of the needed repairs and do the math to make sure that it will be a profitable investment property.
The Bottom Line
Real estate investing can be a risky venture. Furthermore, finding investment properties with high returns is not as easy as it may seem. It takes a lot of research, skills, and effort to be successful in the business. You need to know how to find rental properties that will be profitable. With the above strategies, you can effectively find good deals in the real estate market that are safe and have a good return on investment. Be sure to use Mashvisor to find the best real estate investments in 2019.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
