According to Gallop, 35% of Americans believe investing in real estate is the best plan for making money, regardless of the current economy. In fact, while many Americans are losing confidence in stocks, real estate investing remains a successful source of revenue for many average Americans.

However, investing in real estate can be tricky without some savvy.

Start making serious money by getting the data you need at https://www.propertyreach.com/ and following these 5 essential real estate investing tips.

1. Eliminate Other Debts

Dave Ramsey truly said it best when he claimed “There’s no such thing as good debt.” Buying real estate for investment purposes is a strategic move and will not end well if you’re already heavily burdened with other debts.

This is especially important as you need great credit to purchase additional properties and grow your real estate investments.

2. Location, Location, Location

You can follow all these tips to the T but if you’ve bought in a crappy location, your property won’t appreciate.

Do your research on the surrounding area. If you’re investing in a residential property, a few keys should be a safe area, social facilities like gyms and stores, and potential for growth.

3. Use Cash

You read that right, and it’s no joke. If you’re going to have any positive cash flow, you need to eliminate your risk completely. This way, if the market does crash (and it usually does eventually), you can sit on that 100% downpayment and not sweat a drop!

All you’ll have to do is wait for the market to turn again, and it always does. 

Can’t find renters for your property? You won’t lose any money because you have no mortgage. See where we’re going with this? 

Purchasing your property with cash (if you get a great property), will always be wisest–no matter what lenders tell you.

4. Plan for Problems

If you don’t think accidents will happen, you’ve never owned property. Always have a contingency plan and the safety funds to pay for even the largest of repairs.

Add this to your location research to be sure you know of potential dangers in the area like flooding. One of the best ways to protect your property investment is to hire a reliable property management company that will help you manage the logistics of repairs and tenant relations.

5. Have the Capital Before You Flip

There’s a reason all those house flipping shows on HGTV are so popular. Flipping properties can not only be lucrative but rewarding work.

Still, the investment can be very risky if you don’t have the capital necessary to pay for repairs and renovations. Make sure you have another independent source of capital to pay for changes to a home. 

Don’t forget tip #3 and be very careful about going into debt to make renovations on a “fixer-upper,” especially if the home is in need of serious or foundational repairs. 

If you do decide to flip a home, make sure it checks out on the basic safety requirements as those can be harder to get past. 

More Real Estate Investing Tips

In the immortal words of Mark Twain, “Buy land, they’re not making it anymore.” Real estate investing can be a secure way to make major money–if you follow these real estate investing tips.

For more ideas on smart money-making methods, browse our other awesome articles.

Jane