How can a Newbie Invest in Today’s Real Estate Market?
As a newbie real estate investor it can be incredibly daunting. The question on everyone’s mind is whether or not they should take the plunge and invest in 2024 with the high interest rates. There are a few things that new investors need to consider before they invest in this market. This includes shopping wisely, evaluating repair costs, and current interest rates. By taking all of these things into consideration, new real estate investors will be set up to win in 2024.
First, Focus on the Lower End of the Market
Since interest rates are high, you should probably focus on the lower end of the market. This includes homes that are in the $300K range and below. Affordability is a factor when you’re flipping, because someone has to be able to afford to buy the property once repairs are completed. Thankfully, we have a good inventory shortage as investors, which in turn is creating a greater demand. Therefore, if you have a good price point and a good product, then it’s going to sell quickly.
Second, Create a Product that People will want to Buy
Especially since you will be the one fixing up the property, it is important that you create a property people will want to buy. As real estate investors, it is crucial that you complete repairs both quickly and correctly in order to maximize your investment. By creating a nice fixed up property in this market, you will have an advantage over those who are not putting in the effort.
Third, Consider the Impact that Interest Rates will have on your investment.
Interest rates will be a major factor when purchasing a property in this current market. However, if you can find a rental property that can break even, or better yet one that can make a little money, you should invest now to generate cash flow quickly. Interest rates should go down in the next 18 months to 2 years. When they do, you will be able to refinance and come out ahead of everyone who has been sitting on the sidelines.
Take the plunge and invest in real estate in 2024! By strategically selecting properties and doing the research, a newbie can not only invest in real estate, but they have the opportunity to grow their wealth when rates drop. New investors need to set themselves up for success. In doing so, you will have the potential to increase cash flow and set yourself up to win.
Watch our most recent video to find out more about investing in today’s market.
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