When it comes to finding and taking advantage of investment opportunities in the Dallas-Fort Worth area, there are a few things that every investor should know.
You probably already know that the housing market in north Texas is growing at roughly double the rate of markets throughout the rest of the country. With market prices on the rise and rental demand continuing to outstrip supply, this is a great time to get into real estate investing in this area. Of course, if it were as simple as that, everyone would do it. Here are a few tips for investors in Frisco, Dallas, and the rest of north Texas to help you see more returns on your investments and have better experiences in the real estate market.
Get Organized and Automate Everything You Can
Whether you buy your investment properties in cash or you finance them, you are going to have monthly, quarterly, and annual fees associated with them. From real estate investment club dues to mortgage payments and property management fees, you are going to have many costs to keep up with if you want to stay on top of your investments.
Get a copy of QuickBooks, and you can teach yourself how to keep track of all of your bookkeeping needs. This will give you the tools necessary to organize all of your monthly and periodic costs, and you’ll be able to put everything together easily for your accountant, as well. If you are at all unsure of doing your own bookkeeping, though, don’t hesitate to hire a professional to do it for you. This is a minor cost in comparison with the time you can save on tasks that you’re not familiar with or that you simply do not want to devote energy to.
While you’re organizing your bookkeeping, put as many of your bills and fees on autopilot as possible. Most service providers now allow you to select auto-draft options that automatically take money from an account of your choosing. Some of these providers will even give you a discount for doing this. This way, you can avoid late fees, stay organized, and reduce your monthly bills, as well.
Keep Tabs on Every Property You Consider
As you look into various investment opportunities, don’t forget to take notes and keep a physical list of every property’s advantages and disadvantages. If you keep these lists organized and in order, you’ll know where you can negotiate with sellers, which areas are growing and which are dying, which properties need the most work, etc.
Be Prepared With a Big Down Payment
Once you’ve chosen a property that you want to invest in, you’ll need to finance it. Qualifying for real estate loans is more difficult when you need capital for investment properties than it is when you’re looking for financing for a primary residence. You can often help yourself out and get a foot in the door by preparing to pay a larger down payment than the standard 20%. If you have this available, you show lenders that you are serious about this deal, and they will be more likely to work with you.
Build Relationships With Other Investors and Lenders
You can also gain financing for investments through investing partners and private lenders, as well. If you build relationships with other real estate investors and with people who have capital to invest, you open up new avenues for financing opportunities. The more these people know you and know that you are a serious investor, the more they will want to work with you and trust your judgment on investment deals.
Whether you’re investing on your own, with a partner (or partners), or you’re investing in a real estate investment trust or group, you can benefit from keeping these tips for investors in Frisco in mind. The market in your area is ripe for investment and can be very lucrative if you approach your investments correctly.