Real estate is sky-high, and it’s only getting higher. Now is the time to get in on the ground floor with a real estate investment at one of the most competitive prices of all time! Investing in real estate can be lucrative for those who know what they’re doing. Best of all, you won’t need enormous money to do it! This post will show you everything you need to know about how to become a real estate investor and development developer.
First, you need to decide whether you’re going to be a ‘buy-and-hold’ investor or a development developer. For those who want to leave it all in the hands of the continuum of professional service and make money while they sleep, buy-and-hold investing is the way to go. For others with more energy and imagination, development investing is the way to do it.
Well, when you invest in real estate as a buy-and-hold investor, you buy properties and let them sit; either because they’re great returns on their own or they’re a good investment for you until you can sell them off at an even greater return. If you choose the development developer route, you’ll have to take on the role of a part-time property manager and a full-time residential real estate investor. Listing rental income and property management expenses as expenses in your tax return can help you buy properties at a lower price.
And while development investing is more time-consuming, there are more profitable ways to set up shop. First, you need to select several sites on which to build; once that’s done, you’ll have even more work ahead of you before any houses can be turned into housing developments.
So, how do you get started on the right foot? Start by getting your real estate license – not only is it required by law in most places, but it’s also a significant first step to become a licensed commercial broker or real estate agent. Before you begin looking for a place to buy, take a look at the local market and check out properties that are currently for sale. Look for properties with good cash flow and solid returns. You’ll need strong real estate market data, so subscribe to some reliable sources of information about the real estate market.
Discuss your plans for building and attract a bank or mortgage lender that approves of what you’re doing. Then, proceed to make offers on the properties that interest you. Once you’ve found some good properties, develop a strong relationship with your bank or mortgage lender.
Once you’ve agreed to buy the property, have your architect draw up an architectural plan. Consult with local zoning authorities before proceeding. Take into account the setback requirements of your region; if they exceed what’s allowed by zoning code, then you might need to get special permission to build more than one story above grade level.