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Must-Know Tips for Real Estate Investors in Texas (2019 Update)

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.

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Planning Your First Rental Property from Start to Finish (2019 Update)

Purchasing your first investment property is a big step, and it can teach you a lot. You don’t have to learn everything as you go, though. In fact, you can avoid many expensive mistakes if you follow a little bit of good real estate advice before you begin.

Plan the Type of Investment That’s Right for You

First, you absolutely must know what kind of investment you’re going to make before you start looking. New investors can benefit a great deal from help through real estate investment groups, which provide consulting services and may even be able to help match you with the right investment property to meet your goals. The best firms also offer property management services, which can provide important property investment solutions over the long run.

When you go with a turnkey company or group like this, a lot of the process will be automated and streamlined for you. The real estate staff at a good investment group will be very knowledgeable about the areas where you’re investing, how much you want to invest, what kinds of properties best work for your style of investment, and everything else you’ll need to guide you through the buying process.

Research the Areas Where You Want to Invest

Whether or not you choose to invest through an investment firm or group, you should do some research on the area or areas where you’re considering purchasing real estate. You should look at whether they’re growing or deteriorating, whether they are convenient to work, school, and other amenities for the residents there, how quiet the neighborhood is, and how close it is to attractive areas like downtown Dallas.

Look Into Your Investment Options

You should also consider whether you want to take a hands-on or hands-free approach to real estate investment. If you are simply trying to diversify and stabilize your portfolio, you will most likely want to go with an option that allows you to invest your funds without investing a lot of time or energy. In this case, you should probably consider group investment opportunities or managed properties.

For example, with a real estate investment trust (REIT), you will actually buy shares in the trust that represent a percentage of the real estate investment(s) that the trust makes with its members’ capital. When you invest in an REIT, you won’t ever have to lift a finger on any of the properties you have shares in.

Similarly, depending on the firm, when you invest through a turnkey real estate company, you can choose to have the property management team take care of finding tenants, dealing with all maintenance and repairs, and all other issues with the property, as well. In that case, you’ll own the entire property, but you’ll still have someone else take care of all of the day-to-day issues.

So, as you continue to plan how you’ll invest, remember that you have options to pool your resources with others and that you do not have to “be a landlord” in order to own income properties. Either of these options can be effective property investment solutions for you if you want to gain truly passive income through real estate.

Listen to What the Professionals Have to Say

Finally, as your plan begins to gel, don’t hesitate to speak with consultants and/or financial advisors who have experience with real estate investment. These people are professionals and have a great deal more experience with this process than you do. By listening to what they have to say, you may learn about flaws in your plan that you never would have caught (until they cost you a significant amount of capital).

Of all of the real estate advice we could give you, this is some of the best: never be afraid to ask for help. Don’t worry about spending a bit more for expert counsel or to let professionals take care of construction and property management. Your time is better spent looking into new investments than trying to figure out how to lay tile, and you will make better investment decisions with advice from expert realtors and consultants.