Starting in real estate investing might seem daunting, but with the right information and planning, almost anyone can build a profitable real estate portfolio. In our latest post, we offer tips and tricks for new real estate investors in New Orleans!
When it comes to real estate investing, everyone must start somewhere. Worldwide, people have built real estate empires with only a few thousand dollars. The key to success is to never stop educating yourself. As a well-informed investor, you are able to put yourself ahead of other would-be investors who don’t take time to properly learn. Have a goal and begin taking steps to get there. No two markets are the same, and real estate can differ within just a few blocks! Look at your potential neighborhood and your goals for the future.
Start With What You Have
The best way to learn real estate basics is to own your own home. Building equity in your home will help as you start building your portfolio. You can take advantage of a low down payment using an FHA loan by purchasing the home you live in. If you can save the 20% required for a conventional loan, you will save money in the long run. In a couple years, you’ll be able to rent out the house and collect payments, building equity in the process.
While saving for a down-payment, new homeowners have additional expenses to face. Unless you buy from someone who sells directly, such as Louisiana Direct Home Buyers, you will usually deal with closing costs and commissions from the start. In addition to paying for utility deposits and HOA fees, you will also want to repair things. You may end up with more expenses than you expected. If you save funds in advance, you won’t have to be stressed when buying a home in New Orleans.
Network Like Crazy
Talk about your desire to buy a property with anyone you can think of. It’s amazing what kind of doors can be opened by doing this – you never know who knows who. Often, the best deals are found via word of mouth. The deals may start coming to you if people are aware that you’re ready to buy.
The goals and expectations you set for yourself and your properties should be sensible. Examine the recently sold properties in your market and find out what rental properties are selling for. Learn how to spot trends in your area, and be careful with any sellers you work with. Completely research every property before making any decisions, especially if it seems too good to be true. Don’t get caught up and then find yourself stuck at the losing end of a bad deal. Again, have reasonable expectations. Some people do strike it rich, but you shouldn’t expect to fund your retirement overnight.
This Is Business
Ultimately, allowing your emotions to influence buying and selling can cost you big time. You must know when to put more money into a property, when to make a big purchase, and when to walk away. Treat your investments just as you would treat a job. Hopefully, you have a strong work ethic!
Ask For Help
The best investors have solid teams. They know the best agents, wholesalers, and title professionals in town. Know when to do it alone and when to hire a property manager – a good one is completely worth it!
Network with other investors and investment companies if you want to learn more about the market and local investment opportunities. Great investors will take pride in their knowledge and enjoy sharing what they know. Even the most experienced investor should never stop learning.
Leave No Stone Unturned
Keep an eye out for properties everywhere you go. Great deals can be found on and off the market, through networking, and even by driving through neighborhoods. You can write a letter to anyone, asking if they would consider selling to you. Never come across as pushy or overbearing if you choose to be direct about your interest in buying someone’s home. Sometimes it’s best to work with a team to find the deals for you!
Do you want to learn great tips and tricks for new real estate investors in New Orleans? We can help! Send us a message or give us a call today! (504) 224-9066