Investing in real estate can be profitable, exciting, and provide ample opportunities for future economic growth. Depending on the type of real estate in which you invest, it can also provide living space in the meantime. Of course, getting to know the ins and outs of real estate investing is a process that takes time. With that in mind, here are three useful real estate investment tips to help you in the purchasing process.

1. Intimately Know Your Market

A real estate investment has the greatest chance of success if it’s borne out of a deep knowledge of local market conditions. Prior to making any investments, get to know the city, town, or region in which you’re looking. You’ll want to know details like average home prices, average rental prices, impending changes in tax law, future planned developoments, and much more. 

It usually takes some time visiting multiple properties to really develop a strong sense of conditions on the ground. It can often be helpful to work with a realtor who is deeply acquainted with local conditions, and can provide unique real estate investment tips.

2. Determine Your Property Goals

Are you looking for a place to live? Are you looking for passive income? Do you want to be invested in the physical development of a property? These are some of the questions to ask as you determine what type of property makes sense for an investment. 

If your goal is to rent out property, secure passive income, and have limited involvement with a given property, a multifamily real estate investment might be right for you. If, on the other hand, you’re looking to overhaul a run-down house, perhaps purchasing and flipping a single family property makes the most sense.

3. Research Lending Options

Whatever path you decide, you’ll likely have to borrow money from a financial institution, private investor, or other source. Consequently, you’ll want to build a comprehensive understanding of what a loan will entail, how it will be repaid, and any fees or other costs associated with borrowing. Ensuring you can adequately repay — and build on your investment  — is essential to a successful real estate investment.

If you’re looking at purchasing property, consider the three real estate investment tips above. Get to know the process of investing, and spend time learning what a given area looks like on the ground. Ultimately, this will help set you up for the most success in your purchase.