When it comes to real estate in Indiana, homeowners and investors do everything possible to avoid losing money. The reason is simple. Real estate is expensive and the numbers are only climbing higher. While there is no foolproof way to ensure a buyer never loses money in real estate, there are important steps to help to reduce the likelihood.
Forbes recommends that one of the first steps people should take is building relationships. Good relationships are a great way to build a support team and get access to more reasonable prices. The main skill sets and perks of value include the following:
- Access to special discounts
- Experience with foreclosures and evictions
- Construction, plumbing and electrical work
Another way to save money is to rely on prefab buildings. Shipping container homes and tiny RV houses are trending these days, but there are also more traditionally-designed prefabricated homes. These may allow a real estate investor to create a 2000 square-foot home from the ground up for a fraction of the cost of purchasing a stick-built home.
Forbes also stands by the old real estate advice of “location, location, location.” Essentially, it is a bad idea to purchase homes in a bad area with the expectation that the value will increase over time. Thanks to rehab projects and gentrification, this happens fairly often. However, it might take years for an area to receive that level of attention and some never do. Even for homeowners who plan to occupy the homes themselves, theft and vandalization may cost them thousands of dollars over time.
Purchasing a home is riddled with risk, whether a buyer plans to live in or rent a home. As a result, it is important to gather the data and learn as much about the process as possible before buying. While this is no cure for losing money in real estate, it is nonetheless a big step in the right direction.