REAL TipS: BUYING

Think before you invest

BY KEVIN McCAWLEY
TEXAS REALTOR®
PRUDENTIAL GARY GREENE - Houston

Real estate investing is not a weekend hobby. At a minimum, you must study the most common pieces of the acquisition puzzle, so you know how to acquire the right property for profit. Buy the wrong house and you could lose a lot of your hard-earned money.

You must know the market area of the prospective property and know what the going sales prices are, so you’ll know your “spread” and whether you’ll have a chance to make a profit once you decide to sell the property. And you absolutely must know your tolerance for the kind of risks involved in real estate investing. You cannot go into it blindly, thinking that because they make it look easy on TV, “surely, I can do this!” It’s not a hard way to make money, but it is complicated and has many potential pitfalls.

Make sure you consult a Texas REALTOR® who specializes in investment properties before plunking down your first large check to buy that “dream fixer-upper.” Always remember: You make your money as an investor when you buy the property, not when you sell it.

Kevin McCawley
Prudential Gary Greene - Houston
kevin@kmcplanet.com
713/501-4330