Real Estate is a lucrative and popular form of investing. Big time real estate investors have become some of wealthiest people in America. The scope of their knowledge and capital might be intimidating, but you don’t need to be an investment wizard or have billions of dollars at your disposal in order to succeed in this investment strategy. All you need is a little bit of the right information to launch your real estate investing dreams. Here are a few tips for investing your money in real estate.

Buy Fixer Uppers

Many real estate investors count on appreciation for a big payoff, especially those investing for the first time. When the real estate market is booming and there is high competition for properties, it can be tempting to pay more than a property is worth just to get your hands on something, anything. Real estate investing is not for those with a happy trigger finger. Do not fall prey to the fear of missing out.  Do your research and then be willing to take a chance on properties that are considered “less desirable.” These properties might be a foreclosure or a serious fixer upper. Often times you can prepare a fixer upper for resale for much cheaper than if you had paid top dollar for the properties with an attractive outer finish.

Stick with Single Family Rentals

Multi-family residences have always been a draw for real estate investors because your rent is multiplied, but there are many advantages to sticking with single family homes that make this a more secure option. History has shown that single family units always appreciate over time. Also, multi-family units usually carry with them a high rate of turnover. Finally, single family homes often attract tenants that will be able to make their rent. Your investment is more secure in this type of property.

Buy in Up-and-Coming Neighborhoods

Up-and-coming neighborhoods carry a popularity with them that ensures your unit will not lie dormant. Along with this draw, emerging neighborhoods are your best bet for maximizing your profit because they often carry with them tax incentives and a high potential for expansion.

Armed with a bit of new knowledge, you are prepared to embark on your real estate investing adventure.  Start small and do your research. Before you know it, you will have your own piece of the real estate pie, just like the big guys.