Real Estate Investing 101 for Beginners
Real Estate Investing for Beginners: https://www.hauseit.com/real-estate-investing-for-beginners/
Calculate Your Buyer Closing Costs: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/
Do You Really Want to Be a Landlord?
Before you invest in real estate, you must think carefully about whether you wish to be a landlord and deal with all the related commitments and responsibilities. Buying a property and renting it is not the same as just buying a stock, and sitting back and collecting the dividends. Remember, having an investment property is just like owning a business and comes with all the responsibilities of running such a business.
Consider the Alternatives
Carefully consider investment alternatives for your cash, especially if you plan on being a more passive investor. The opportunity costs may simply be too great. For example, dividend yields on broad equity indices are approximately the same as cap rates on most Manhattan rental properties.
However, buying a S&P 500 ETF comes with zero responsibilities and an effectively 0% expense ratio. In contrast, being a landlord means you’ll have no way to opt out of property taxes that increase virtually every year, and are typically at least 1% of the market value.
Buy a Home You Would Live In
Only buy a place that you yourself wouldn’t mind living in. That’s because if all else fails, you can move in and live there yourself! You’ll be intimately familiar with the property that you are renting out and you’ll know every nook and cranny and will be able to explain to your tenant how to best make use of the apartment and how to maintain it.
Wait for a Buyer’s Market
Real estate investing for beginners doesn’t need to be hard if you simply wait for large scale market disruptions, such as what we saw during the Great Financial Crisis of 2007-2008. As Baron Rothschild once said, “the time to buy is when there’s blood in the streets.”
While you may not need to wait until there’s an actual war that appears to be lost, you should perk up when there is widespread market panic. Why? Because it’s so much easier to not get ripped off as a novice investor when the whole market is for sale.
Choose an Experienced Buyer’s Agent
It’s important to work with a veteran real estate agent who can guide you through the home purchase process, especially if you are a beginner when it comes to real estate investing. The last thing you’ll want is to work with a friend or acquaintance who is as green as you when it comes to real estate. Not only will that invariably lead to poor outcomes, it more often than not leads to broken friendships.
Save Money with a Hauseit Buyer Closing Credit: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
#hauseit #hauseitnyc
https://www.hauseit.com
Calculate Your Buyer Closing Costs: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/
Do You Really Want to Be a Landlord?
Before you invest in real estate, you must think carefully about whether you wish to be a landlord and deal with all the related commitments and responsibilities. Buying a property and renting it is not the same as just buying a stock, and sitting back and collecting the dividends. Remember, having an investment property is just like owning a business and comes with all the responsibilities of running such a business.
Consider the Alternatives
Carefully consider investment alternatives for your cash, especially if you plan on being a more passive investor. The opportunity costs may simply be too great. For example, dividend yields on broad equity indices are approximately the same as cap rates on most Manhattan rental properties.
However, buying a S&P 500 ETF comes with zero responsibilities and an effectively 0% expense ratio. In contrast, being a landlord means you’ll have no way to opt out of property taxes that increase virtually every year, and are typically at least 1% of the market value.
Buy a Home You Would Live In
Only buy a place that you yourself wouldn’t mind living in. That’s because if all else fails, you can move in and live there yourself! You’ll be intimately familiar with the property that you are renting out and you’ll know every nook and cranny and will be able to explain to your tenant how to best make use of the apartment and how to maintain it.
Wait for a Buyer’s Market
Real estate investing for beginners doesn’t need to be hard if you simply wait for large scale market disruptions, such as what we saw during the Great Financial Crisis of 2007-2008. As Baron Rothschild once said, “the time to buy is when there’s blood in the streets.”
While you may not need to wait until there’s an actual war that appears to be lost, you should perk up when there is widespread market panic. Why? Because it’s so much easier to not get ripped off as a novice investor when the whole market is for sale.
Choose an Experienced Buyer’s Agent
It’s important to work with a veteran real estate agent who can guide you through the home purchase process, especially if you are a beginner when it comes to real estate investing. The last thing you’ll want is to work with a friend or acquaintance who is as green as you when it comes to real estate. Not only will that invariably lead to poor outcomes, it more often than not leads to broken friendships.
Save Money with a Hauseit Buyer Closing Credit: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
#hauseit #hauseitnyc
https://www.hauseit.com