When it comes to improving your finances through real estate investing, research really counts. You want to make the right decisions.
But how are you supposed to go about this task? What’s actually going to work and allow you to make the most informed decisions possible?
That’s what we look at in this post. We explore some of your options and what’s likely to catapult you to financial success long-term.
Pick A Location And Be Ruthless
When it comes to picking a location, try to keep an open mind. Even if the property you wanted to buy was in one location, it’s okay to switch to another if you think it’s a better deal.
Many investors like to start with the macro picture — the country as a whole. Then, they narrow down from state to city to neighborhood and finally street. This pinpointing of the best location gives you the best chance of generating the highest returns and greatest appreciation long-term.
Dig Into The Neighborhood
With that out of the way, it’s a good idea to dig into the neighborhood. You want to know things like the crime rates and the traffic at different times of the day. These factors might seem minor, but they can all affect the long-term house price appreciation growth rate.
If you can go into past data from the last 12 to 24 months, that’s also a good idea. With this, you can start creating projections and estimate what’s likely to happen in the market in the future. This should all be available online.
Read The Experts
Reading the experts is also a good idea. Try to find a market report on the area that interests you and dig into it. Look for opportunities to connect the dots between what you know and what the document is saying.
Don’t be afraid to contact the report’s creators if you have a methodological question. Get them to tell you what they did to arrive at their conclusions if it’s not clear from the report.
Look Through Public Records
Looking through public records is also a good idea. These will often let you unearth issues with the real estate you want to buy, often in unexpected ways.
For example, you see whether there are easements or liens on the property. You could also see if it has code violations, something that could come back to bite you if you don’t deal with it quickly.
Finally, you can view things like flood zones and flooding history. These tell you if flooding entered the property and when it occurred.
Investigate Property Histories
Lastly, you can do the ultimate detective work and look into the specific histories of the properties you want to buy. Finding out more about their pasts can tell you if they are a worthwhile investment in the present.
If you can get title reports, that’s also a good idea. These give you peace of mind, knowing you’re buying a property that’s legitimately owned by someone else (and you know their identity).
