Real estate is a good addition to your investment portfolio diversification. Putting money into buildings and land can give you spread out your investments over more sectors other than just stocks and bonds. Keep reading so you know how to invest in real estate wisely.
Do your research on the market prior to making a real estate investment. Look at between fifty and a hundred properties in the area of interest. Compare them using good note taking and a spread sheet. Things to list include current pricing, projected rent earnings, and repair budgets. You can easily spot which deals are good and which deals are bad this way.
Do not neglect to consider the various sunk costs that come with buying a property. You may have to pay closing costs, legal fees, legal fees, along … Read the rest