4 Smart Boston Real Estate Investment Tips

{This is a guest post.}

A lot of investors today want to have real estate added to their portfolios, but there is more to real estate than a few simple steps. Real estate is quite different from dealing with bonds, stocks or other types of investment, so this may be pretty overwhelming for inexperienced investors in the field.

You don’t have to feel intimidated by real estate investment however, as you can still maximize the returns while keeping the risks to a minimum. When you deal with things the right way, you will have a good deal made without too much issues involved. The following tips will give you more information on the subject you can make use of:

Treating the business seriously

Real estate still remains a strong investing business, so you would do well to treat it properly if you want to succeed in the long run. You will need to have a good and steady business plan, detailing the starting and running of the business you have in mind. Prepare realistic goals over the course of the next couple of years. If you’ve never had to draw up a business plan, then you may need some help doing it, so look some more tips up online for more information.

Credit report importance

You will need to make sure you have a good credit report that will allow you to finance the investment property you’re looking for. A lot of lenders will need a FICO (Fair Issac Co.) score of at least 700 if they want to be able to purchase investment properties on the current market. Something else you need to pay attention to is the total ratio between debt and monthly income you have, ensuring its low enough to allow you to invest in the first place. It make sense that an outstanding debt on your credit card or loans will get in the way of improving your debt ratios, so you may need to address the issue as soon as possible if you want to succeed on the market.

Real estate agent help

Find a good bank or a mortgage broker in the area you plan on financing investments, specifically one that has a connection to the National Association of Realtors. This will ensure they adhere to a strong code of ethics followed by the association’s members, thus allowing you to count on their services and advice. You can also check for other investors that may have worked with them, but do so before you start your actual search for properties. If you plan on paying with cash, then you will need to be able to provide proof that you have the funds by submitting a bank statement when making your offer (source: austintenantadisors.com/office-space).

Searching tips

Check out the best areas you want to look for properties. Some of the investors will make the mistake of limiting the search to areas close to their homes for the sake of comfort, but you may usually find much better alternatives further away, so don’t limit yourself based on that. New investors will often think they need to live close to their tenants so they can deal with repairs and other problems, but if your property is in good condition before they move in, chances are you will have to deal with this very rarely. You may also need to help your future tenants by pairing them with a good removal company or a man and van hire service. Cheap removals are not easy to find, especially reliable ones, but if you do some research and help your future tenants, you may give them a far easier time dealing with moving furniture and removal in general.

Ready to learn more about purchasing investment property? Reach out to our team of multifamily experts.


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