6 Things All St. Louis Real Estate Investors Must Know
If you’re just getting started in St. Louis real estate investment, then you have a lot of great opportunities out there for you. First-time St. Louis real estate investors may run into a few challenges, but there are a number of great properties out there.
To help you get started, here are six things all St. Louis real estate investors must know.
- You Have to Research Your Market
Jumping into the first St. Louis property you see is not a good strategy. If you really want to be successful in St. Louis real estate investing, then you need to target a certain market and do your research.
Research is paramount to success in St. Louis real estate investing. If you don’t reseach, you won’t know what a property is really worth, and you’ll be more likely to pay more for a property that just isn’t worth it.
Once you choose a target St. Louis area, you need to look at the comps for the area as well as key selling factors for the property such as school districts, crime statistics and walkability. If you do your research, you’ll be able to spot a great deal right away.
- You Need to Outline an Exit Strategy
Before you buy a St. Louis property, you need to have an exit plan for it; that is, how you will eventually let it go. Is the property a house flip or is it one that you’ll hold on to for a few decades and rent out?
You should also have a few Plan B strategies to be used in the event that something goes wrong. If you buy a St. Louis house to flip it, what happens if the property is in need of more renovations than you previously thought? If the market begins to take a dip, will you sell a rental property or try to hold out until the market turns again? Thinking about these scenarios up front will help you feel more prepared before you buy.
- You Need to Actively Search for Leads
Motivated sellers in the St. Louis market will be your bread and butter. If you’re constantly marketing to these sellers, then they’ll know who to call when they’re ready to sell and sell quickly. Motivated sellers might need to move quickly, or their homes might sit on the market for a long time. They see investors as guaranteed buys, so when they call, answer.
- You Need to Rely on Your Numbers
Your numbers don’t lie. If the properties in your St. Louis area aren’t going over a certain value, then don’t think that you can sell your home for more than that. The house is only worth what buyers are willing to pay. Don’t make upgrades that won’t get you your money back.
- You Need to Choose a Strategy
With St. Louis real estate investment, there are all sorts of different strategies available to use. You might go after fixer uppers or homes being sold through a divorce. You might target rental properties in a college town or a hospital. Whatever strategy you choose, stick to it and get good at it. The better you are at a certain strategy, the more money you’ll be able to make.
This will also help you weed out good deals from bad deals. The better you know your market, the better deals you can make.
- You Have to be Open and Honest when Working with Others
In St. Louis real estate, your reputation matters. If you’re always trying to scam people out of a property or looking to cut corners on a renovation, word will get out, and you’ll have a hard time getting people to work with you. Be honest in your dealings, and people will enjoy working with you.