Insider Perspective: Real Estate Investing

Successful real estate investors all have something in common: they know how to make good investments. What’s their secret? This article helps dissect the top five things every real estate investor knows.

1. Local Pricing – Fluent in the latest real estate market trends, investors know in-demand real estate markets, areas that offer rapid price acceleration and what’s a smoking hot good deal. Local newspapers, real estate agents and even courthouses that regularly record  property deeds are all excellent sources of information, offering great insight into property value trends.
2. Catalyst – New infrastructure is often the precursor to up-and-coming areas. New roads and schools are signs that community growth is anticipated. Investing in new communities often means lower initial tax rates. Spotting these communities can be as simple as paying attention to new traffic lights, survey crews, land clearing and traffic lanes widening. Local building and transportation departments are also aware of new projects.
3. Taxes – If two identical towns were situated side-by-side, homeowners would choose to live in the town that offers lower taxes. Real estate investors can take advantage of public information by contacting local tax assessors to inquire about tax rates and potential reassessments. Towns that are already at a maximum capacity for population may be planning to increase taxes to pay for more schools, roads and local infrastructure.
4. Schools – Investors need to invest in areas that are well rounded. The state boards of education provide updated information about school rankings. Good schools are an attractive selling point for parents and families.
5. Outskirts – As large metropolitan areas continue to grow, the outlying surrounding areas will continue to grow too. Often times, these outlying areas provide more affordable housing alternatives. Real estate investors should research areas that are close to public transportation. Additionally, public transportation expansion is often a key sign that areas may be gearing up for additional growth.

 

Investors that do due diligence and their homework will be rewarded with more success than their counterparts. Investors that take the time to analyze hot, up-and-coming real estate markets often make better initial investments, which leads to more profitable long-term rewards.

While some investors view real estate as a short-term investment, with today’s volatile economy, many investors are embracing real estate as a long-term investment that offers substantial profits.

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