Most real estate investors start their careers off by investing around where they live. This is why I do my real estate investing in Billings Montana. You can venture out when you have more experience. The reason behind this is that we feel more comfortable with the areas and know the areas better. It is also easier to get the local real estate information that we need. Investing in your local market is also cheaper to start out, there are fewer travel costs, you can see what you are buying and it may give you a feeling of comfort.
First, you have to decide which part of town is the best place to invest in. This can be determined by what kind of you choose to do. I have not gone over the types of real estate investing but some include rehabbing (fixing up and selling), wholesaling (finding deals and selling them to other investors), buying to rent, and there a few others. These are the real estate strategies that I use for the most part. When looking at the market you need to see where other investors are buying their houses. Most of the best deals will be found in low to middle-class neighbours hoods. By low I don’t mean drug-infested war zones, what I mean is blue-collar safe neighbourhoods that might have somewhat older houses and houses that are not on the higher-end price side. Now you can find deals in the higher-priced neighbourhoods but most will be in the low to middle-income neighbourhoods. When looking where others are buying ask local realtors, other investors or appraisers.
When talking with investors ask them several questions such as what neighbourhoods they prefer, what type of houses they buy (3 bed 2 baths), and what they do (rehab, rent, wholesale). You should not look at other investors as competition but try and work with them.
There are different types of markets such as appreciating markets, flat markets, and deprecating markets. Appreciating markets are markets where there are not enough houses or a very high demand for houses which causes the price of houses to go up. The reason there is a high demand for housing can be because of job growth, a very appealing area, or several reasons. Flat markets are markets that have no or very little growth. This means that there is not a lot of demand; buy just enough to fill the needs of everyone. Depreciating markets are where there are a lot more houses than people to fill those house. This causes house prices to start going down. This can be because of a large employer leaving the area, a natural disaster or just overbuilding. There is an old saying buy in a bust and sell in a boom. In depreciating markets you can pick up several deals, while in appreciating the house prices are going to be much higher and harder to find great deals. The deal will still be out there you have to know where to find them.
Learning your market is another key to becoming successful. Real estate Brokers and experts in your area can be the best source of information for you. Learn to use them to find out what kind of market you are in. If you are in Billings Montana we are in a pretty stable market. Billings Montana has not seen the ups and downs that other markets have experienced. I will have to say that I have been noticing a little bit of a downward trend but not much. Once the first-time home buyer credit is over with we might see a little more decline. Every market can vary by neighbourhood, so make sure you know your market well. I have seen the same houses just one mile apart selling for totally different prices.
Sidenote to remember:
This article is just the basics for getting started in real estate investing. This is not a how-to article but an article that gives you some information about things to do to get started. Everything in this article is tools that can be applied to helping anyone get started in real estate investing. I am going to give you my eight keys to getting started. Nothing is right or wrong but reflects the point of view of the author. Laws and legal practices vary from state to state, and laws can change over time. The author does not vouch for the legality of his opinions, nor is there any intent to supply legal advice. The author strongly encourages the reader to consult with professionals and an attorney prior to entering into any real estate transaction or contract. The author is not a writer but he is a real estate investor. There will be grammar mistakes and errors, so don’t be too critical of the grammar but focus your energy on what is being said. With that said prepare yourself to think a little differently and expand your mind. Let’s get started on an amazing adventure.