Some people go into the real estate business as a full-time job, but for many people, real estate investment starts off small and grows over time, almost by accident. With some real estate markets beginning to recover, an increasing number of casual investors are looking to take their real estate interests to the next level.
According to a recent national survey, investors accounted for roughly 25.3 percent of all home sales by May 2012, and 3 percent of American adults-which is around 7 million people-consider themselves to be real estate investors and plan to make a purchase in the next twelve months.
Each investor will have their own unique set of circumstances, goals, and means. Some will be managing properties in addition to their full-time job, while others plan to make a career out of managing their real estate portfolio. One important thing for any investor to realize about getting into the real estate business, though, is the importance of getting proper professional help.
Those who plan to do real estate work on the side probably want to look into hiring a property manager. Managers typically charge between 7 and 10 percent of the total rent. While a manager will probably not care for the property the way the owner would, the reality is that there is a lot to look after and owners simply don’t always have the time or energy.
Realtors are used by most real estate buyers to help them find appropriate properties and to negotiate terms with sellers. Those looking to own more than a couple properties may need to seek out additional help as their business continues to grow in size and complexity.
In our next post, we’ll continue this discussion.
Source: CNBC.com, “Finding Help for the Real Estate Baron in You,” Alec Foege, October 8, 2012
