Tips for First Time Real Estate Investors in Florida

Most people feel that starting a real estate portfolio is too much of a challenge.

However, we can confidently tell you that once you learn a few useful tips and strategies, investing in real estate could become one of the best decisions you ever made.

Discover Our Top Tips For Investors Below.

Tip #1┃Do your own research, and never, ever stop

Do your research. It’s not smart to rely on your agent to provide you all the necessary information. Make sure you ask questions and find out as much as possible from different sources. From the minute you decide you want to invest, and throughout your entire investing journey, continue studying and expanding your knowledge. Learn the areas, trends, property specifics, and any other information you can get your hands on.

There will always be areas you are less knowledgable on. Make sure you educate yourself continuously. A great way to expand your knowledge and skillset is to make friends with others who share a common goal. Connect with people who are doing similar things and can share their experiences, stories, and information.

Tip #2┃Set up and structure yourself properly

Once you’ve done as much research as possible, you will want to enlist some professional help. This will ensure you have structured everything properly.

Build a team of quality people you can rely on. This should include a lawyer, tax accountant, real estate attorneys, agents, and someone at the bank you can work closely with.

The sooner you form connections with people in the industry, the better. If the timing is right and it seems appropriate, get to know your team on a more personal level. Go for drinks or coffee. Help out when they’re stuck in a tight situation. The stronger your team is, the more adequately prepared to deal with new and challenging situations you will be.

Tip #3┃Know your options

There are a variety of options available when it comes to starting your real estate portfolio. Don’t feel you have to stick to single and multi-family rentals. You could consider leasing a commercial property to local businesses, renting land to people to use recreationally, or even think about investing in mobile homes.

You might be surprised to learn that many people make a decent return on investment by pursuing niche investments. You can also look into REIT’s, or other investment groups. You will have to put in the effort, but working with experienced investors is an excellent way to get to grips with the ins and outs of investing.

Tip #4┃Make sure it’s right for you

Before you get ahead of yourself, make sure your investment plan makes sense. Imagine you’ve heard about a possible return on investment in purchasing foreclosed properties.

But, before you commit to buying a foreclosed home, ask yourself: do you really understand what goes into rehabbing a home? Can you fix drywall, replace windows and copper pipes?

If you plan to invest in a rental property, will you be the landlord, or will you hire a property manager? These details should be figured out before you make a final decision.

If you have no experience fixing up a property ready for the open market, you might want to reconsider a run-down property as your first-time investment plan.

Tip #5┃Calculate your margins

You will want to be able to calculate your returns and expenses accurately. Be smart. Financial return is based in reality, not wishful thinking.

There are many methods for calculating these numbers. The 1% rule states the property should bring in 1% of the final sale price each month. The 50% rule states that about 50% of your profits will go towards house expenses, not your mortgage.

Setting realistic expectations and goals will ensure you see great returns as a first time real estate investor!

Are you interested in investing in the Miami area? Our staff can help you find the property you’ve been looking for!
Send us a message or give our office a call today! (305) 916-3328
You can also check out our website >>> We Buy Houses Fast Florida!

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David Veras

David Veras was born in Hialeah, Florida and has been involved in Real Estate since February 2019.

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