If you’re like many people starting a career in real estate investing, you probably know that you need all the help you can get to find the best deals on great houses – and that’s why we’re here. Our team of Midland REALTORS® can help you every step of the way so you can build a real estate empire. In the meantime, check out these five essential tips for new real estate investors that can get you started on the right track.

5 Essential Tips for New Real Estate Investors

First things first: Create a budget and start saving for a down payment. The more money you have on-hand, the less you’ll need to borrow from a lender.

Your budget for house-hunting should include more than just the price of a house. You should also consider additional costs such as home inspection fees, homeowners insurance, title search fees and other sums that you’ll have to come up with by closing day. The more prepared you are, the better off you’ll be.

From there:

  1. Identify the type of property you’re looking for
  2. Make sure your credit is in shape
  3. Search by location
  4. Look for properties that can earn you income
  5. Work with a skilled REALTOR who can help you get the best deal

Here’s a closer look at each.

Tip #1 for New Real Estate Investors: Identify the Type of Property You’re Looking For

What type of property would be the best fit for you? Some people choose a single-family home, while others decide to buy a duplex or triplex so they can live in one of the units while renting out the other(s). Maybe you want to invest in a vacation rental property, or you’d prefer to buy a condo so you don’t have to worry about exterior maintenance. Your goal as an investor (such as whether you want to flip a house or you want it to earn you rental income) will also help you make this decision.

Related: 10 questions to ask every mortgage lender you talk to

Tip #2 for New Real Estate Investors: Make Sure Your Credit is in Shape

If you expect to use financing to buy an investment property, you’ll need financing – either from a conventional lender or another source, such as a hard money lender. A conventional lender is going to want your credit score to be in top shape (though a hard money lender will likely be more concerned with the value of the property than your credit score).

Tip #3 for New Real Estate Investors: Search by Location

Your investment property has to be in the right location. For example, it wouldn’t be wise to buy a property that you intend to list as an Airbnb in an area that has no attractions, no business travelers and poor weather all the time. Again, your investment goals (such as whether you want to buy a vacation rental or you want to rent a house to tenants) will play a big role in where you should make your purchase.

Related: How long does a short sale take?

Tip #4 for New Real Estate Investors: Look for Properties That Can Earn You Income

Search online for properties that appear to be able to bring in income. (And yes, again, your goals will help you decide what property is right for you. A house that’s in poor condition and listed at a rock-bottom price may be a great investment for a house-flipper, for example.)

Tip #5 for New Real Estate Investors: Work With a Skilled REALTOR

It’s essential that you work with a skilled, knowledgeable real estate professional when you’re buying an investment property. Your agent will be able to help you find the best deals and negotiate with sellers on your behalf. Your REALTOR will also give you the guidance you need for a successful real estate transaction.

Related: Should you buy a duplex in Midland?

Are You Buying or Selling a Home in Midland, Texas?

Use our site to search homes for sale in Midland and all of our surrounding areas. Unlike the “big name” sites out there, our site is directly connected to our local MLS and is updated faster. By creating a property manager account you can stay on top of the newest homes for sale and get price change alerts so you can stay ahead of other buyers and beat them to the best deals!

In the meantime, check out these 1-click searches: