Despite all the info-products promising foolproof and failproof real estate investing strategies for would-be investors, the truth is that nothing is fool or fail-proof. This is especially true for real estate. Effective and profitable real estate investing involves hard work, hours of research, and no small amount of grit and determination to see it through. Savvy real estate investors plan for success but anticipate setbacks and a few failures along the way.
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It is true that interest rates are on the rise for the first time in quite a few years. After the uncertainty of real estate investments following the real estate bubble burst of 2007 and 2008, many people are nervous about what this means for the future of real estate investment. Here are a few key considerations to keep in mind before allowing panic to take over.
- Rising interest rates represent confidence in the housing market.
- Housing prices are still on the rise as well. Another indication of a robust and healthy market.
- Real estate remains a healthy, if somewhat volatile, investment.
Of course, you can’t simply see these things alone and make informed real estate investment decisions. While housing prices are continuing to rise throughout 2022, they are rising at a slower pace than in 2021. This does indicate a slowdown in the market, though they are not indicative of a recession. At least not at this stage of things.
Real estate has always been volatile. People have made and lost fortunes in the real estate market. Sometimes the same person has made and lost fortunes at different stages of the journey.
Another important detail to remember is that while real estate prices are expected to continue rising throughout 2022, they are still near historic lows. Couple the still-low interest rates with a housing demand that outstrips the current supply, and you have a recipe for success among investors who are patient enough to wait for good deals rather than trying to force them into happening.
Mind Your Inspections and Instincts
Inspections of prospective investment properties remain an investor’s best friend. Not every potential problem is immediately visible to even the most practiced eye and no inspection can identify every possible problem with a property. However, a thorough inspection from a qualified professional can help you avoid potential money pits and even warn you of upcoming problems that may affect how much you’re willing to offer when purchasing a home.
Especially in a competitive real estate marketplace, when you use real estate as an investment, it is critical to avoid costly problems and preventable expenses when buying real estate. In other words, don’t even think about cutting your costs by skipping inspections when buying real estate in a tight housing market. Especially when you’re using real estate as an investment. It doesn’t matter what you plan to do with the property you purchase. You need to know about potential problems with the foundation, the structure, and even the land as soon as possible. Pre-purchase inspections give you the opportunity to see the shape of things before it’s too late to change your mind.
Also, don’t dismiss your instincts. Even new real estate investors can often get a feeling about a property that there’s something wrong that hasn’t been disclosed. Don’t ignore those niggling doubts just because there are fewer houses available, and prices are on the rise. Ignoring these doubts may prove costlier than you can imagine or keep you locked into a bad investment.
Get Your Financing in Order First
Before you do anything else, you want to make sure you have your financing in hand. This means you need to have everything you need in place for a favorable mortgage Virginia Beach real estate buyers and investors have a few outstanding options available to consider. Investment properties have different rules and requirements than a personal residence when it comes to mortgages and loans.
Fortunately, investors today have more options available than ever before. From microlenders to make small investments in your project to traditional lenders who may have less favorable terms but offer greater peace of mind to many borrowers, the right mortgage broker can help you identify potential investors or lending for your real estate investment needs.
Practice Patience
The Virginia Beach real estate market is hotter than it has been in a long time. Many properties appear to have offers minutes after going live. Working with a fantastic real estate agent can help you get the inside scoop on properties before they’re even listed. This means you can get to the front of the line when it comes to making offers on desirable properties and even properties that may require a little TLC before they can turn a profit. The more patience you practice, though, the better bargains you’re likely to find along the way, helping your real estate investments pay off bigger and better for you.
