FAQs for First-Time Real Estate Investors Looking to Play It SafeBy Guest Blogger
May 19, 2021
Get answers to important questions about investing in real estate for the first time.
Investing in real estate for the first time is a major financial move. So, if you’re feeling nervous or uncertain, that’s completely understandable. What you need right now is the help of an experienced real estate team, such as United Country Real Estate, and some pointers to help answer your most pressing questions.
Luckily, we have tips to help you connect with both and to help you make a smarter investment.
Do I Need to Set Up an LLC?
This is such a smart question! If you want to learn more about the benefits of an LLC and setting up one in your state, you should check out this link. One click and you will see that by setting up an LLC, you’re tapping into some great benefits for your real estate business, like:
· Some of the same legal liability protections as larger corporations.
· More tax benefits since LLCs can take advantage of more credits.
· Protection for private assets from lawsuits and other potential issues.
That last point is very important if you plan on leasing out any of your real estate properties. Property owners can become involved in lawsuits and varied legal battles with tenants, and without an LLC your personal assets could be at risk. Including your home and bank accounts.
How Do I Find Properties?
You could spend hours or even days online searching for the perfect investment. But honestly, your time is more valuable than that which is why your best bet is to reach out to a local realtor who can take the guesswork out of your search and the entire buying process. Dreaming of owning a home in the country? Then, let United Country Real Estate be your trusted partner.
The agents at United Country have lived in and owned every type of non-urban property you can think of, and they’ll put this experience to work for you. So, whether you’re into flipping houses or buying a vacation rental, you can make your dreams come true with less hassle.
What Should I Know About Financing?
Now here’s where things can get a little tricky. You see, when you are buying a house and plan on making that home your primary residence, you have a ton of options in terms of home loans. Unfortunately, this isn’t the case when you plan on investing in a home as a rental or flip.
To finance an investment property, you need to make sure your credit is in top shape, and you also may need to save up for an even bigger down payment. This is all due to the fact that banks consider investment purchases to be a bit more of a risk. Even so, if you want to buy land and develop it or buy homes to rent out, real estate investments can offer a lot of ROI.
Anything Else I Should Know Before Investing?
Investing in real estate can offer some big profits and a lot of financial stability. Work with a real estate agent or company you can trust, and the odds are stacked even higher in your favor. Aside from putting the tips above to good use, there are a few other things to keep in mind.
If you’re looking for residential rentals, make sure you are looking in an area with a lot of rental potential. Thinking about buying a fixer-upper to maximize your ROI? Before you do, you should also make sure you know contractors that can help you with any needed fixes or updates. You should also think about hiring a property manager unless you want to DIY management.
When you want to invest in wide-open spaces, the folks at United Country Real Estate have the experience and passion to help you make your real estate dreams come true. They can help you find a piece of land to develop, a nice home in the country or a non-urban home to flip.
Article written by guest blogger, Katie Conroy of AdviceMine.com.
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