Andrew Carnegie, the industrialist and billionaire once said, “Ninety percent of all millionaires become so through owning real estate.” This quote is a good reminder of how powerful investing in property can be!
Mortgage rates do go up sometimes, which can be very off-putting. However, you have to realize that when you buy an investment property, it’s a long-term commitment. The key is to have a long-term plan in place that encompasses any potential downfalls along the way.
So, if you seriously want to buy investment property, we have some super handy tips and tricks we’ll share with you now.
Cash Is King
If you can do it, always try to pay in cash for investment properties. After all, how can anyone really have “good debt?”
Paying in cash means you bypass any mortgage rate concerns. And if you’re planning on having renters, you won’t need them to move in and start paying straight away.
Furthermore, if you are planning to flip the house, you can afford to bide your time until the market looks right. Then when it comes to selling the property, you’ll take all the profits, rather than having to pay any lenders.
Don’t Put All Your Eggs in One Basket
If you’re planning on buying an investment property, don’t make it your sole or majority investment. Instead, try to diversify your investments with property being one of many.
For example, you could make sure to have some money tucked away in a retirement account. Also, mutual funds are another avenue to explore to add to a healthy portfolio.
Use Property Management Consultants
If you are planning on buying more than one investment property, you might want to consider using a property management consultant to help you. This is one of the best investment property tips for beginners.
You might not need to use their services forever. But, a property management consultant can show you how to get your business in order in various ways. For instance, they can provide software for you to manage your property portfolio with ease.
If you’re interested in learning more about these kinds of services, we recommend Balanced Asset Solutions consulting. They offer a whole range of investment property management solutions to help you achieve success.
Try to Keep Local
If you are managing investment property located all over the country or further afield, it can be difficult to keep tabs on everything. You’ll more than likely have to employ various investment management companies to deal with your properties.
How will you know that those companies are doing a good job? If your properties are local, you can watch over what’s going on and have better peace of mind.
Buy Investment Property the Right Way
If you are looking to buy investment property, make sure to check out our tips before you jump right in! Always try to buy with cash if you can, and don’t put all your money into property. Make use of consultants as well if needed and keep local.
Check out our blog for more tips and tricks.