You decide to make the big decision to invest in a real estate property. With all the websites and listings available for a property search, the options can be overwhelming. Where do you begin? What exactly do you look for? How do you ensure that your investment property search will be successful? Here are several factors to consider during your search for the perfect property, and several tips on how to search like a professional.
Doing Your Research
Before you accept a new job or apply to college, you usually do your research. Why would investing in a real estate property be any different? Just like any major life decision, investing in real estate property requires in-depth research. You need to have a plan. Having a real estate investment strategy will allow you to know exactly what kind of approach you would like to take. Try creating a spreadsheet before you begin your property search, including your budget for an investment property. Researching the location of your real estate investment property and understanding the local real estate market during the time you decide to invest is crucial. Ask yourself the following questions: Is it currently a buyer’s market? Is it a seller’s market? Will investing in this real estate property provide me with a positive cash flow? What are the latest real estate trends, and how will this affect my investment in the future?
Be sure to stick to your budget, and research mortgage rates. Trying to invest in something that you will not be able to afford will result in negative consequences including negative cash flow. Remember, a down payment of 20% is always recommended in order to ensure you don’t end up with high monthly mortgage payments, as well as assuring lenders to work with you. While researching, don’t forget to include each and every cost that may arise in your property search, including property taxes and maintenance fees. Allowing yourself time to do the proper research before taking any action will result in a much more positive experience in your property search.
Related: 5 Tips on Researching Investment Properties
Narrowing Down Your Search
Because there are hundreds of thousands of properties across the US available to search, try to compact your choices, and make a short list of the criteria you are looking for. Consider the type of investment property you are looking for. Will it be a single family home, or a multi family home? Are you looking for an investment property on the beach, or something in the suburbs? Do you prefer something in the city? Would a small condo work for you, or would you be more interested in a large family home with multiple bedrooms?
Related: How to Narrow Down Choices During an Investment Property Search
Narrowing down your search can also save you a lot of time. For example, when you use a property search website, many times you are already given options to narrow your search based on price point, lot size, and location. Take advantage of these filters, which will help further narrow your search, and lead you to the most efficient property.
Using Search Engines
Years ago, when the internet wasn’t available, real estate investors would look up MLS listings in their local newspapers. Sometimes they would spend countless hours driving around neighborhoods in order to find the perfect real estate investment. Although this definitely works, the advancement of technology and the internet have made it possible to conduct a property search from the comfort of your own home. The internet can be overwhelming, however, and contains a plethora of information you don’t really need. This can make your property search a little more difficult. However, there are specific websites geared to meet your real estate investment property needs.
Websites such as Mashvisor are the perfect place to begin your real estate investment property search. Mashvisor has thousands of property listings all over the US. The website allows you to narrow down your property search, and provides you with detailed information using traditional and predictive analytics in order to help you maximize profit. Unlike traditional property search websites, Mashvisor gives you revenue potential, cost assumptions, and even cash flow calculations. Mashvisor also provides a rental property calculator that will give you the opportunity to get real estate market analysis, as well as comparison between different real estate investment properties. With the click of a button, you are able to look up listings particular to your area. In turn, you will be able to make an informed decision about the real estate property you decide to invest in.
Hiring a Real Estate Agent
Let’s face it. Preparing your property search can be very time consuming, especially if this is your first time investing in real estate. Many times, people’s busy lifestyles make it almost impossible to dedicate time to searching for real estate investment properties. If you find the property search process too overwhelming, or feel like it isn’t coming together like you hoped, then hiring a real estate agent may be the best option for you. Real estate agents are specifically trained to find the best property for you. They have access to search tools and certain listings that you would not otherwise be aware of.
Related: Questions you should be asking your real estate agent
Communicating your preferences for your property search with a real estate agent will allow him/her to find the best fit for you.
Successfully investing in real estate property will produce very lucrative results. In turn, this will mean making money in real estate. Following the steps above on properly researching properties, narrowing your search, using the right search engines, and hiring a real estate agent will ensure that you find the right match. This will also teach you how to manage a real estate invest property. It is always important to follow specific guidelines while searching for any real estate property. Don’t forget to start your search at Mashvisor, where hundreds of real estate properties are available at your fingertips.