moonchild
VIP Contributor
Investing in real estate can be a great way to build wealth, but it can also be a great way to lose your hard earned money. To avoid the latter, it's important to follow some basic rules when investing in real estate. Here are three rules to keep in mind when considering a real estate investment.
Rule #1: Location, location, location
The old saying "location, location, location" is truer in real estate than perhaps any other industry. A great property in a terrible location is unlikely to appreciate in value, whereas a mediocre property in a great location is likely to do well. When considering a real estate investment, look for properties in up-and-coming neighborhoods, areas with good schools and low crime rates
are the place to be.
Rule #2: Do your due diligence
When investing in real estate, it's important to do your due diligence. This means researching the property thoroughly before making an offer. You'll want to look at comparable properties in the area to get a sense of what the property is worth, as well as any zoning laws or other regulations that may affect the property. You'll also want to have the property inspected to make sure there are no hidden issues that could cost you money down the line.
One thing to keep in mind: don't let your emotions cloud your judgment. It can be easy to fall in love with a property and overlook potential problems, but doing so could be a costly mistake.
Rule #3: Have a plan (and stick to it)
Once you have a plan, stick to it. Real estate investing can be a roller coaster ride, and it can be tempting to make impulsive decisions based on short-term market
fluctuations. But in general, the best real estate investors are the ones who stay the course and stick to their original strategy.
Rule #1: Location, location, location
The old saying "location, location, location" is truer in real estate than perhaps any other industry. A great property in a terrible location is unlikely to appreciate in value, whereas a mediocre property in a great location is likely to do well. When considering a real estate investment, look for properties in up-and-coming neighborhoods, areas with good schools and low crime rates
are the place to be.
Rule #2: Do your due diligence
When investing in real estate, it's important to do your due diligence. This means researching the property thoroughly before making an offer. You'll want to look at comparable properties in the area to get a sense of what the property is worth, as well as any zoning laws or other regulations that may affect the property. You'll also want to have the property inspected to make sure there are no hidden issues that could cost you money down the line.
One thing to keep in mind: don't let your emotions cloud your judgment. It can be easy to fall in love with a property and overlook potential problems, but doing so could be a costly mistake.
Rule #3: Have a plan (and stick to it)
Once you have a plan, stick to it. Real estate investing can be a roller coaster ride, and it can be tempting to make impulsive decisions based on short-term market
fluctuations. But in general, the best real estate investors are the ones who stay the course and stick to their original strategy.
