Real estate investment is one of the proven ways to become wealthy over time. Real estate is a wise choice if you have retired and are looking to invest in something long-term that can help you with significant financial gains. Having said that, it can also be an extremely risky investment.
You must have ample knowledge of the market before you start investing. Also, understand that as a retiree, you don’t have an active income stream, making it all the more vital to choose your investment wisely.
In this guide, Bill Schantz shares valuable real estate investment tips that can help you.
Real Estate Investment Tips by Bill Schantz
These valuable tips can help you make intelligent investment decisions in real estate.
1. Make a Plan
To make it big with your investment, you need to have a solid plan in mind. You should be able to see the big picture a few years from today to help you understand where you are headed with your wealth. Based on that plan you have, you can form a strategy in line with that to help you.
2. Study the Market
With real estate, studying the market is key. First, focus on a few geographical areas to see the rates. Understand the differences between commercial and residential properties first, bearing in mind other factors, too, like spending habits and mortgage rates. Bill Schantz believes that the key to real estate success is knowing the market inside out. Informed decisions increase your chances of doing well in this market.
3. Understand the Risks
As with different investment types, there are risks involved with real estate investment as well. Understand those risks first before you step foot into investing- location, cash flow, legal, asset, and tenant risks are only a few of the possible risks. Prudent real estate investors realize how important it is first to familiarize themselves with all types of risks.
4. Choose Your Location Wisely
One of the most important factors in real estate is location. So, choose your location wisely, and also consider your investment’s timing. For example, locations with low crime rates, access to public transportation, and good walkability are generally more popular than others, so the risk involved when investing there is also very low.
5. Get Help
Bill Schantz says that investing in real estate can be very tricky. If you feel you need help when trying to pick locations or understand the technical part of it, get someone to help you. Real estate brokers and lawyers can help you get further clarity on things, allowing you to make better investment decisions. It is always best to have someone guide you than to end up making the wrong decision.
6. Know the Tax Laws
Before you start off, understand the tax laws of the area first to know all about the deductions that will happen. This can help you understand things much better.
Final Thoughts by Bill Schantz
Bill Schantz says that real estate is among the most rewarding professions ever. With ample planning and thought-out processes, you can make good money with real estate investment as a retiree.