Real estate comes with a lot of benefits, but also potential risks, especially for beginning real estate investors. We want to make sure your first investment experience is as positive and profitable as possible. Here are some things you should be aware of before you buy your first investment property.
The Experts Never Tell You
You may already know that investment property can provide you with regular monthly cash flow and long-term appreciation. You probably also know that even when you use conservative leverage, you don’t need a lot of money to invest in real estate.
However, there are also a few things to consider that the real estate experts never tell you:
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Real estate markets and the overall economy move through normal, unpredictable up-and-down cycles. Knowing this helps you to understand how, when, and where to invest in property.
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The longer you hold your investment property, the more profitable it will typically be. That’s due partly to real estate cycles, and also due to the long-term effect of property appreciation.
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Real estate is not liquid. It can easily take months to sell to make a profit.
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Buying investment property takes time. You’ll need to commit to researching individual real estate markets, and understanding how to use different financial formulas to help predict the potential performance of a rental property.
