5 Tips to help homeowners think like a real estate investor
We provide 5 practical tips to help homeowners gain the knowledge and confidence they need to make informed investment decisions. From understanding the real estate market to knowing what to look for in potential investments, these tips will give you a solid foundation to build on as you begin your journey as a real estate investor.
Investing in real estate can be a smart financial move, but the process can be daunting for homeowners who have never considered it before. Knowing where to start and what to consider when making investment decisions can be overwhelming.
The good news is that with research and know-how, anyone can start thinking like a real estate investor. In this blog, we’ll provide 5 practical tips to help homeowners gain the knowledge and confidence they need to make informed investment decisions. From understanding the real estate market to knowing what to look for in potential investments, these tips will give you a solid foundation to build on as you begin your journey as a real estate investor.
1. Do your homework
This is the most important step in thinking like a real estate investor, but it's also one of the easiest to overlook. Before you start looking for properties to purchase you need to research the market and neighborhood in which you want to invest. You should look at past sales data for similar homes in the area, research current market trends, and speak with local real estate agents about patterns they are seeing in the area.
A good way to get started is by using an online tool like Trulia or Zillow that allows users access to all sorts of information about properties across America (and even internationally). Once you've narrowed down your search based on location and price range, consider visiting some open houses or touring homes that have sold recently!
2. Get pre-approved for a mortgage
Getting pre-approved for a mortgage is one of the best things you can do as a homeowner. It allows you to have more control over your real estate investments, because it gives you the ability to purchase properties without having all the money on hand.
The process of getting approved for a mortgage involves providing financial documentation (such as W-2 forms and bank statements) so that lenders can assess what type of debt load is right for you. If they approve your application, they will typically provide an estimated maximum purchase price range based on their analysis of your credit score, income level and other factors such as employment history or assets owned by yourself or family members who may be co-signing on this loan with you (which will impact how much money each person needs).
Once approved by one lender--or multiple lenders if applicable--you'll receive something called "pre-approved" status which means: 1) You've provided all necessary documents proving that everything checks out; 2) They've given us permission to look at any homes within our stated price range; 3) We are free from liability if something goes wrong later down the road during escrow processing (when closing actually happens).
3. Aim low (in a good way)
When you want to buy a home, start lower, and work your way up! Search for houses that are below your budget so you have room for closing costs and possible repairs. Buying a house that isn’t perfect is a great way to save money while also putting personal touches on your future home. Here are some ways to aim low when you’re homebuying:
- Buy a house that is less than you can afford.
- Buy a house that is in need of repairs.
- Buy the best house in the worst neighborhood.
- Buy a house that is not in your ideal location, but close enough to where you want to live someday (or at least within walking distance).
4. Be flexible when you can.
Being flexible is an important part of buying a home. Make a list of the things that are “needs” versus “wants”. Remember, a lot about a home can be changed after you purchase it!
If you are making an offer on a home and the seller won't budge on their asking price, it might be time to walk away. You can always find another property that will meet your needs and fit into your budget. Don’t fall in love with the first house you see!
Being flexible also means being willing to negotiate with the seller--try asking for a little off the asking price or asking if they'll throw in some upgrades like new carpeting or appliances as part of the deal.
5. Don't let emotions get in the way when buying a home.
It's important to keep track of the real estate market and not let your emotions get in the way when buying a home. The market will go up and down, so don't get discouraged. Always have a backup plan in case your first choice doesn't pan out, but don't jump on every offer because you might end up overpaying for something that isn't right for you.
When looking at homes, make sure they're within your budget and have good bones--you'll be able to make cosmetic changes and add personal touches later!
Buying a home is one of the most important decisions you will make in your life. It will affect you and your family for years to come, so make sure you are fully equipped to make a good choice. Educate yourself on the real estate market and the steps you need to take as a homebuyer to protect yourself and make a good investment in your home.
Anyone can be an investor
Thinking like a real estate investor is all about being informed, prepared, and flexible. By doing your homework, getting pre-approved for a mortgage, aiming low in a good way, being flexible, and not letting emotions get in the way, you'll be able to make informed investment decisions and secure a home that meets your needs and fits within your budget.
Remember, buying a home is a big decision and it's important to take the time to research the market and understand the steps you need to take as a homeowner to make a smart investment. With these tips in mind, you'll be well on your way to becoming a savvy real estate investor. Want to learn more? We have a variety of courses to put you ahead of the real-estate game!