As with many markets around the country, the Indianapolis real estate market has its fair share of bank-owned properties and foreclosures. With many Indianapolis homes for sale that could be bargains for its buyers, people interested in real estate investment come out of the woodwork, or so they say. If you’re one of them, there is research to do before you take the leap, like with any big decision.
Real estate investment appeals to all types of Indianapolis residents, not just those looking to make a quick buck or even those who own homes themselves. They come from all walks of life. And they may not be only interested in Indiana homes but also may want to venture out into other struggling markets. Several years ago, Florida became a popular location to snatch up a good investment property.
Nowadays, with so many potential investment properties on the market, and as many buyers interested in them, it’s good to educate yourself on a few basics you will want to consider before starting on the path to real estate investment. If you have financial and lifestyle resources, you are part of the way there. But real estate investing demands the same consideration of financial goals as any other type of investing. Just like any other significant financial decision, educate yourself before you jump in.
With groups like the National Real Estate Investors Association to back you, advice is free flowing and includes the following:
Be a homeowner yourself. Nothing will replace the practical knowledge gained from the complete transaction of closing on your own home. Many first-time home buyers have seriously cold feet when embarking on all the ins & outs of buying a home. It’s a daunting task but one that many others have done before so it’s nothing to be that afraid of. More importantly, it’s good to just stay alert and be educated, and surround yourself with good, professional help.
With the knowledge gained about making an offer, negotiating terms, acquiring appraisals, applying for loans, scheduling inspections, paying property taxes and homeowners insurance, learning about title insurance and many other elements, you will be more educated to make sound decisions on subsequent investment properties. Besides, your first investment property could end up being the first home you buy.
There are exceptions to this rule of owning your own home first, however, such as if it makes more sense in your personal situation to rent. Also, owning a home will require more from you when you go to apply for additional funding for investment properties.
Educate yourself. Gather any information you can from the internet and books written on the topic. Also consider joining investment groups for invaluable information from other investors.
Work with a professional. It’s impossible to investigate everything yourself as certainly most investors have a day job, so hire someone to work with you.
One thing to consider is you might not get the deal you think you should on a given property. This is especially true if the home you are interested in is located in a popular neighborhood. Indianapolis REALTORS® can put you on an automated notification system when a home is listed so that people know the second a new property hits the market. Having this kind of immediate notification can mean there will be numerous offers on a desirable property and that the home will even likely sell in some cases for more than the original listed price.
Perhaps most importantly too, have a strategy to unload properties that didn’t end up being good investments. The right kind of research will help avoid this but remains something you must consider.