While home sales are dropping, investors are watching the market and making their move. Investing in the real estate market may teeter on the verge of insane these days, but if it's done right, in the next few years, it could pay off. Purchasing distressed property, fixing it up and renting it out for the long haul is the way to go.
Investing in the market with the intent to sell it for a profit quickly, could lead to disaster. In today's market selling that home quickly could be a huge problem, as there are so many homes for sale at the moment, yours could sit in the market for years before you sell it. Successful investors will buy property for the long term; patience and vigilance is the key! Once your investment is bringing in enough profit, then you can start looking to invest again.
When investing in real estate you must decide whether or not you intend to become a hands-on landlord or if you should hire a property management company to handle the 'messy' stuff. If you choose the latter, this could cut into your investment, be sure to account for that in the rent. It is recommended that you manage at least one of your properties on your own, this way you are at least educated on what property management entails.
According to Warren Buffet, one of the world’s most successful investors, investing in real estate today, will prepare you for the future economy. Be patient, real estate should be a long term, tangible investment; one that could pay off big in the long run.
