With home prices back on the rise, investors are jumping back into the real estate market with both fists and for good reason. There is still plenty of room for homes to appreciate back to previously seen prices. For those who have never purchased real estate as an investment, let’s take a look at some helpful hints to ease the transition compliments of RISMedia.
RISMedia focused on three pertinent points that investors need to follow to have success. The first piece of advice, and most important, is to diversify your portfolio. This includes investing in a variety of different properties, which will help guard against another potential market crash. Additionally, RISMedia warns against investing all your monies in property. Be sure diversify by investing in some low-risk investments such as a whole life insurance policy.
Point two is don’t quit your day job. Investing is, at its core, a gamble. For first-time property investors, it can be assumed that mistakes will happen. Therefore it could be some time before you are able to leave your regular job to become a full-time investor. During this time, keep your day job and use the evenings and weekends for your investment work.
Finally, RISMedia recommends that a first-time investor specializes on foreclosures. Of course, the number of forclosures is dwindling as the market recovers, but there are still excellent deals to be had. According to RISMedia, foreclosures are intriguing because “they usually only require minor tweaks to turn big profits.”