Real estate investing is one of the best methods for increasing personal wealth. Think about it: as long as the earth is inhabited, people will need to purchase real estate, so it’s practical and there’s MUCH less risk involved than there is with other wealth building strategies.
After all, which other wealth building strategies will never go to zero no matter what? So let’s look at a few simple steps for using real estate investing for increasing personal wealth and for avoiding some of the common mistakes that newbie real estate investors make:
1. Work on your credit
Unless you’re planning on doing real estate investing using straight cash purchases, you’re going to need pretty good credit. Before you start your investing, check on your credit and take care of anything which might cause doubt in the mind of lenders.
This means more than just checking your credit score, you need a detailed look at what’s on your credit so that you can be proactive in protecting yourself from things which could cause problems with lenders.
2. Do some “Drive By” Shopping
One of the most valuable habits you can get into is driving around (even if it’s just a few hours on a Saturday morning) and looking at properties. This will teach you how to look for things which could increase a property’s value: curb appeal, the neighborhood etc.
The better you get at finding these things, the better you’ll do when it comes to finding good investments. Even if you aren’t yet financially prepared to get started, start working as soon as possible on your ability to spot a good deal.
3. Check the Tax Appraiser’s Website
When you find a property that you might be interested in, you can actually find out what it last sold for by looking at the tax appraiser’s website. This will further help you to estimate the potential value of a property and give you a clearer idea of how to spot good deals. You can even develop the skill of making estimates as to how much a property is worth and using this site to see how close you came.
4. Get a Mentor
When it comes to real estate investing for increasing personal wealth, getting a good mentor is one of the best money saving strategies. A good mentor can save you from making mistakes which can cost you thousands and thousands of dollars and possibly even keep you from using real estate investing for increasing personal wealth. Just be sure that the person whom you work with is actively involved in successful real estate investing.