Real Estate Investment: Don’t Go it Alone
Appraisers are an integral part of the Real Estate investment process. After all, an appraiser’s detailed report helps define the potential value of a real estate investment. If you’re getting ready to start your real estate investment journey, don’t take your first step without a few tips from an appraiser that will aid you on your way. After all, to start your investment journey on the right foot, you will need to become well acquainted with the wide world of real estate. We have a list of 5 tips ready for you.
5 Appraiser Proven Tips
The following appraiser tips are designed to help you tailor your chosen investment strategy to capitalize your investment in the real estate market.
1. Real estate investment is a business: investment might not feel like a business, but, treating it like one will benefit you in the long run. Like most good businesses, your first step is developing a well tailored business plan that takes into account each aspect of your investing future. Next, you will need to examine your finances and flexibility in investing. Finally, you will need to surround yourself with a great team who can guide you during and after your Real Estate purchases.
2. Make sure you have great credit: of course, a potential investment hindrance is your credit score. With this in mind, before you even consider buying or selling, make sure that you have a 700 or better FICO score. In today’s real estate marketplace many lenders require a score of 700 from their borrowers. As you check (and potentially work on improving) your credit score, take the time to calculate your total debt-to-monthly-income ratio. You want to make sure that this ratio is low, so that you can receive the best loan rates.
3. Surround yourself with a good team: This includes a respected bank or mortgage broker. No matter their financial status, many seasoned real estate investors will still turn to a good bank or mortgage broker for a loan. The reason behind this action is simple; when investing in real estate you want to make sure that you still have available funds, in case the market takes a turn for the worse. In other words, you want to ensure that you haven’t tied every penny into a real estate investment property. A good bank or mortgage broker can advise you as to how to best hold onto some cash as you navigate the waters of real estate investment.
4. Research and research some more: before you can invest, you must (and we cannot stress this enough) conduct the proper research. As a real estate investor you are not limited to simply investing in your backyard. Instead, you can expand your horizons and invest where the market is best suited to your needs. Understanding the market will also help you to determine if it is currently a buyer’s market or a seller’s market. This knowledge will greatly influence your investment strategy.
5. Speak with Real Estate professionals: as alluded to in tip number three, one of the best appraiser tips that we can give you is to speak with other real estate investors. Join trusted online forums to see what other investors think about the market. Speak to local appraisers and real estate agents to gain a new perspective on the current, future, and past markets. Join a local community of investors to further your real estate investment knowledge. The more respected and knowledgeable people that you speak with, the easier it will be for you to determine what type of real estate investment strategy you want to take.
These five appraiser tips will help you to negotiate the tricky waters of real estate investment. As you continue on your journey towards becoming a successful real estate investor, remember that just as your chosen properties are only as good as the surrounding neighborhood, so too are you only as good as your chosen team. Choose your team wisely, so that you can surround yourself with knowledgeable real estate professionals who can positively influence your ability to become a successful real estate investor.