In your attempt to secure a more stable future for yourself and your family, there are probably a number of steps that you have already taken. From stocks and bonds to savings and other investments, you might feel that you have a diverse and stable investment portfolio. If you have been considering investing in real estate to take advantage of some of the great home values in Orange County and weren’t sure how to do it, then continue reading to the end to see the steps that we recommend following.
At Lido Real Estate in Orange County, we strive to offer the highest level of personal service that you deserve. Whether you are dipping your toe in the water with your very first real estate investment purchase or you are a seasoned pro, we can help you find the right property for your needs. We will partner with you to ensure that you get the best home value for your investment. Should you need property management services, we can help with that as well. Contact us today to speak with one of our real estate professionals.
1. Identify Your Financial Stage
It’s important to identify where you are in your current financial stage of life, as certain real estate strategies will make more sense than others. If you are in the first stage, then you are probably focused on survival. Halfway to financial independence, your focus is somewhere between saving and growing your savings. Financial independence is the final stage and is defined as having all the money you’ll need for your living expenses indefinitely. Determining which stage you are at can be intimidating, but don’t focus on whether or not you are perfect. Remember, everyone has to start somewhere.
2. Choose a Specific Real Estate Investing Strategy
If you are in the first couple of stages financially, then you’ll want to focus on earning extra income, learning from individuals who are experienced in the field of real estate, and avoid losses. If the middle stage is where you are currently, then focus on dramatically increasing your savings rate by reducing expenses where possible and increasing income. Finally, for the last couple of financial stages, your goals should be to grow your small net worth into a much bigger net worth and turn any existing equity into investments that can produce maximum income with minimal effort.
3. Pick a Target Market
While it’s up to you as to whether you invest locally or choose a new market, there are advantages to investing in real estate close to home. You’ll have the intimate knowledge of the real estate market that comes with being a resident yourself. Additionally, it’s easier to manage a property that isn’t halfway across the country. If you prefer to invest in real estate that is far from home, then be sure to do your research on property management companies so that you get the best deal possible. You’ll be trusting them to take care of your investment. If you choose to work with your local market and the prices seem too high, here are two options for finding real estate that you can afford:
- Investigate the suburbs of major urban areas
- Check out niche markets
While urban areas can be incredibly pricey, it pays to drive out into the suburbs where prices are generally much more affordable. You might find the ideal investment property in the suburbs. If the suburbs are still too costly, then look into some of the niche markets, including condos, apartments, and mobile homes.
4. Determine Investment Property Criteria
It’s important to determine the criteria for your investment property as this will clarify both for you and for others what you think a good investment looks like. There are two categories that you should be sure to address — your target property and your target terms. For example, if you choose a niche target market, then you might define your criteria in terms of the zip codes that you are looking at, along with the price range and the number of beds and baths. Providing additional details such as the type of neighborhood and what conveniences are nearby will help narrow down what you are looking for.
5. Start Small
While investing in real estate can provide the side income that you are looking for, it’s important not to bite off more than you can chew. If you are new to real estate investment, then consider renting a room in your house through sites that connect you with renters. You can use your spare room as your first foray into real estate. Not only is it less intimidating than purchasing a home, but it is also something you can do for a short period of time, which reduces your commitment.
At Lido Real Estate in Orange County, we know how valuable real estate investment can be, which is why our team is here to assist you in finding and securing the right property. From determining the home value to predicting market growth, we can help you find the investment property you want. Contact us today to speak with one of our real estate experts and get the help you need with your real estate investment venture.