Most graduates of any kind of degree program will admit to using Cliff’s Notes to get through at least one class or another during the course of their education. But did you know that there are similar shortcut instructions for anyone interested in entering the rental property investment market?
The Second Edition of Real Estate Investing for Dummies, by Eric Tyson and Robert S. Griswold, covers proven real estate investing strategies that real people can use to build wealth. Although investing in real estate isn’t rocket science, it does require a bit of homework. But if you’re searching for a solid long-term investing strategy and the tools to get you there, then Real Estate Investing for Dummies may be just what you need. Mind you, Mesa Property Management, based in Southern California’s High Desert, is not affiliated in any way with the authors or this book. Nonetheless, we think it is worthwhile to share a brief synopsis:
- Real estate is a proven wealth-building vehicle.
- Although many people can succeed investing in real estate, rental property investing isn’t for everyone.
- Make sure you’re financially fit before investing in rental properties.
- Don’t underestimate the importance of establishing good credit.
- Your first (and often one of the best) real estate investment is buying a home to live in.
- Focus on residential properties in the beginning.
- Among residential property options, our top recommendations are small apartment buildings and single-family homes.
- Have your real estate team in place before you begin your serious property searching.
- Look for properties in the path of progress.
- You won’t get rich trying to find no-money-down real estate investment deals.
- Making at least a 20 to 25 percent down payment provides access to the best financing terms.
- As the size and complexity of the deal increases, financing options become less attractive.
- For low entry costs, consider real estate investment trusts (REITs) and lease options.
- We prefer the adage of “Location, location, value.”
- Make real estate investments close by.
- Any decision about where to invest starts with an evaluation of the overall region’s economic trends.
- You’re purchasing a future income stream or cash flow when you buy an investment property.
- Don’t rely on the seller’s numbers when evaluating a property’s potential.
- The buy-and-flip real estate investment strategy can work, but it also has a downside.
- Bottom line:Real estate professionals should value a property based on the projected Net Operating Income (NOI).
For more details, check out The Real Estate Investment for Dummies Cheat Sheet. And if you do decide to take the plunge and purchase rental investment property, make sure you hire a great property management firm. Verify that personnel are experienced in locating ideal tenants who pay on time, take care of your investment and leave your property in great condition. The right property manager will also be able to find you additional properties, handle new purchases, direct rehab, manage repairs, keep you well informed and handle all communications with your tenants. At Mesa Property Management, we do all of this and more…taking the pain out of property management.
