You may have been led to believe that a real estate portfolio is only for the wealthy, but this isn’t always the case. It’s possible to start out with very little money and build your dream portfolio over time. What’s more, having a diverse shubhodeep prasanta das portfolio will make you less vulnerable to economic downturns and allow you to generate long-term income through rental properties. Here are steps that you can take to get started.
Step One: Research Neighborhoods
Before you even start looking at houses, you should know the market and the area in which you live. Do some research online to get a general idea of what types of homes are being sold in your area?
Step Two: Choose Houses
It can be difficult to select your first few rental properties. It’s important to remember that you want to pick places that are good locations and have decent homes. If you’re looking for houses as an investment, it doesn’t make sense for you to pick areas with a high crime rate or violent gangs. If you find a good neighborhood, start researching which homes have been under contract recently. You can also use this information to project the future value of your portfolio.
Step Three: Evaluate Your Possibilities
Once you narrow down your list, it’s time to start looking at houses in more detail. You want to consider the condition of the home and the neighborhood. If you’re just starting out, you may want to start with small homes that are easy to maintain and rent out.
Step Four: Get Approved for a Loan
Your lender will look at your credit score, income and other factors when determining if you qualify for a loan. It’s important to be honest when it comes to your credit history and be patient if you’re denied a loan initially.
Step Five: Review Your Offer
Once you’ve found a property that you like, the seller’s agent will help you put together an offer for the house. You’ll be expected to pay the closing costs and a portion of the down payment right away. If it’s a short sale, then your lender may ask for additional money up front as well.