Investing in real estate can be one of the best long-term investments you can make. Residential real estate investments averaged a 10-11% return over the past 20-years. However, this isn’t penny stocks and mistakes can be costly. This article covers 8 good things to keep in mind when investing in this space. A notable few of the items are:
Research: This seems like a no brainer, but real estate is truly local, and what a 3 bed 2 bath home can sell for in James Island can be a very different thing in West Ashley. Heck, it can be very different in the neighborhood next door.
Assuming it’s easy: Just like any investment, real estate requires some level of knowledge of the “product”, the area and the market. If your method of pulling profit out of the house is to improve it and flip it, experience and knowledge becomes exponentially more important. It’s not as easy as HGTV make it out to be. Really.
Exit Strategy: When selling a property that returns a healthy profit, you must have a end plan when you start your investment so you don’t get exposed to steep and unexpected taxes.
It’s a good article and a brief read. If you have any questions or comments, let me know!