Investing in real estate can provide reliable revenue streams and become an asset that’s relatively safe from inflation and swings in the market. However, these real estate transactions can be more complicated than buying a house, so it’s easy to make mistakes that could lead to major losses later. Below are a few helpful tips for investing in real estate.

Do:

Aim for a high ROI.

Whether you’re flipping properties or buying a rental, these investments are more hands-on than simply buying stocks, so you’ll want a higher return on investment. To make the project worthwhile, aim for investments with the potential to return at least 15%. Otherwise, you may wind up losing money if the market takes a turn or unexpected problems arise.

Choose the right property.

When comparing investment opportunities, look for features that will appeal to a wider range of buyers and renters. While a low price and good location are important, focus on the square footage and other features. For your first investment, go for a three-bedroom house with two bathrooms and a yard.

Don’t:

Rush into your first investment.

In an active market, you may feel the need to act fast to take advantage of a good opportunity. However, rushing into a real estate transaction can leave you burdened with significant debt with an asset that isn’t generating income. Before making any offer on a property, carefully calculate how much you can expect to earn and how long you’ll have to carry the debt before you start seeing returns.

Gain assets too quickly.

Getting too deeply into debt is another common mistake made by new real estate investors. Even if you come across another excellent opportunity, it’s best to proceed cautiously. A good rule of thumb is to avoid purchasing a second property until your first investment starts generating revenue.

Investing in real estate can be a complex adventure, but having an experienced attorney on your side can help maximize your chances of success. Allen L. Lacey Jr. Attorney at Law has been providing detailed guidance to investors and homeowners throughout Commerca, GA, and has the expertise to handle even the most complex real estate transactions. Visit their website for more on their legal services, or call (706) 335-7886 to discuss your real estate transaction with an attorney today.