Over the last one hundred years in America, real estate has proven to be one of the most reliable investment options. If someone were to take a look at any 10 year period in the past, they would soon realize it’s reasonable to expect a 50% to 80% return on investment on real estate over the next 10 years. Of course, that’s a bit of a generalization because timing and property location do matter. However, it’s reasonable to assume any discussion about real estate property prices in Cape Coral, Florida would follow the norm.
If you are new to the concept of investing your money in real estate, you might want to seriously consider investing in Cape Coral real estate. We wouldn’t say that if there weren’t good reasons to make such a suggestion. To help you better understand the real estate investment process here’s 9 tips to help you as a rookie investor make the right decision.
1. Strengthen Your Financial Stability
Before you commit to buying property/house, you need to do what’s necessary to stabilize your finances. First, you’ll need to be in good financial shape to qualify for a loan. Second, you’ll have an asset to protect once you make the purchase. You don’t want other debt issues putting your real estate assets at risk. At the least, you might want to consider paying off your consumer debt prior to buying real estate.
2. Set Reasonable Goals
It would foolish to expect to hit a real estate “Home Run” with your first home or property. You are better off starting small, giving yourself an opportunity to parlay equity increases into larger properties over the years.
3. Do Your Homework
Buying real estate property or a home will likely be the most significant investment you’ll ever make in your life. With that in mind, you need to do your homework. You need an understanding of what kinds of return of investment you can expect based on the amount of money you have to invest. You also need to make yourself aware of any potential risks you might face by buying certain properties in certain areas.
4. Choose a Location That Suits Your Needs
If you are buying a home, it’s very important that you find a location that matches up well with your lifestyle. For instance, the fact you have kids might make certain areas in Cape Coral less attractive than other areas. Also, you might want to find a home that’s closer to your place of employment. Ultimately, you want to choose a location that’s going to create as little stress in your life as possible. If you are investing in a rental property rather than a primary residence, the location will be a lot more flexible.
5. Run Your Home Ownership Like a Business
As a business owner, all your decisions would be driven by a profit motive. You wouldn’t spend money on certain things if you didn’t believe it would increase the value of your business. Successful real estate investors have that very same frame of mind.
6. Seek Advice From Successful Investors
As you delve into the world of real estate investing for the first time, it’s important that you understand you don’t have to go it alone. There are thousands of very successful real estate investors in America, many of whom are willing to share the secrets of their success. If you are looking at buying a property in a place like Cape Coral, you could certainly benefit from establishing relationships with other real estate investors who have already been successful within that city.
7. Maintain Steady Cash Flow
Cash is king. If you don’t maintain cash flow, you’ll eventually run into emergencies that could cause you financial difficulties. If you were to decide to take on additional debt to cover any cash shortfalls, you would effectively be diminishing the value of everything you own. As a real estate owner, you don’t ever want to put your property at risk. That’s why it’s important to buy a property or properties you can afford. You’ll also want to focus on living within your means.
8. Protect the Value of Your Investment
As indicated above, your real estate property in a place like Cape Coral will naturally appreciate over time. You can provide additional protection over the value of your property with good maintenance policies and a few occasional upgrades. If you decide to do upgrades like a room addition on a home, you’ll want to talk to someone in the local real estate community to confirm that said addition will in fact add value to your property.
9. Check Foreclosure Roles
Many local banks will be able to provide you with a list of properties they have gained through foreclosure. If the timing is right and you do the proper due diligence, there’s a decent chance you can locate a property that sits in good shape while carrying a purchase price that offers you immediate appreciation. Sometimes, these types of properties are made available through auctions.