For many people, even for those who enjoy a traditional 9 to 5 corporate job, the idea of being financially free is incredibly attractive. Imagine having the opportunity to make a few shrewd real estate moves and be set up to earn a respectable income?
If this is perking up your ears, then look no further than the Florida real estate market. This is one of the most popular destinations for vacationers, retirees, young families just starting out, and investors looking to make a buck. Here are a few things to consider as you begin your journey.
How Hands-On Do You Want to Be?
For some potential investors, the idea of being incredibly hands-on throughout the whole process is a non-negotiable, but for others, simply being able to invest and then collect paychecks is the more ideal scenario. If the latter appeals to you, consider investing in a REIT. Since the acronym isn’t exactly self-explanatory, you are probably wondering what is a reit?. A REIT is short for, real estate investment trust, which is essentially a type of real estate investment company with huge tax benefits.
There are different types of REITs, and some pretty strict requirements so do your due diligence and decide which style will work for you. This is a great way for investors to start and build a real estate portfolio that enjoys tax benefits that are unmatched.
Since Florida is a state with a high-level real estate activity, there is no shortage of opportunities to get involved in this sector should you decide it is right for you.
How Large of an Investment Can You Afford?
The last thing you want to do when you start investing in real estate is bankrupt yourself in the process. Sit down with a financial professional and speak transparently about your goals and desires, then take time to truly consider the advice they give and the steps they suggest to achieve your goals. Modern television has made it seem extremely easy to flip houses for a profit, but what these shows often do not show you are the potential risks of this style of investing.
Are you prepared to do any of the work yourself or will you have to hire out every job? If the former is true you might be in good shape, but if the latter applies, that is going to eat into your profits, and you need to know that up front. If you are investing in real estate in Florida as a non-native you also need to be aware of how the climate and location will impact your costs. There are things that can drive a price up quickly that you might not expect if you are unfamiliar with the Floridian market specifically.
Who Are You Going to Work With?
Especially if you are not a local to the area in which you hope to invest, finding the right buyer’s agent for you is crucial. Shop around and meet a few different people. Take time to research online and read reviews of each agents’ past clients.
Purchasing real estate for investment purposes is different than buying a residential home, so try to narrow down your search to professionals with a proven track record of success in investment properties.