Anthony Kolich’s Tips for Real Estate Investors in East Windsor

In the United States, home prices are expected to rise at double the speed of inflation. This makes real estate investment a highly attractive prospect. Residents of East Windsor, New Jersey can take advantage of these trends when they buy homes to live in and to resell or rent out. Successful real estate investor, Anthony Kolich, is now sharing his expertise to help others start and build their own real estate portfolios.

In East Windsor, there is a buyer’s market. Median home sales have only risen by 1 percent over the past year, and the price per square foot has dropped from $151 to $148. This would be a great time for beginning investors to consider buying property in East Windsor.

Getting Started in Real Estate

When you are investing in real estate, the first step you should make is buying your own home. Renting a home only puts money in your landlord’s pocket while keeping you from accumulating equity in your own property. In order to buy your first home, you must first save up money for a down payment and pay off as many of your existing debts as possible. Mortgage lenders strongly consider debt-to-income ratio when deciding whether to approve a loan.

When you are looking to invest in real estate of any kind, it is important that you make a solid budget for yourself. This will help you determine how much money if any that you can devote to investing in real estate. It will help you target areas where you could save money and help you reach your financial goals.

Build an investment strategy by determining the risks you can take. If you are just starting out, begin with low-risk properties. You can assume more risks as you have more capital to invest. Set your goals for the amount of profit you will make and be realistic.

Rental Properties

Once you are in your own home, consider saving for a rental property. It is a great idea to research rental prices and find out which neighborhood can make the best profits. An area where rents are competitively high may give you the best return on your investment. Homes that have a little work needed but can be completed by yourself provide a nice return on investment.

When setting rents, make sure that your total expenses are lower than the rent your tenants will be paying. This will give you a cushion of profit. Save about $350 per month in an account that will pay for any damages or repairs that may happen during the tenants’ occupation of your property. Landlords assume responsibility for any problems that are not caused by the tenants, and these expenses can range anywhere from a new refrigerator to a new roof.

Commercial Properties

Commercial properties generally require more of an investment than homes, but they can be a great way for East Windsor residents to build wealth. In Mercer County, there is a very low percentage of vacant square footage, at only 2.8 percent for the fourth quarter of 2018. This means that lease incomes are steady. The average asking rate for Mercer County is $4.85 per square foot, a bargain compared to surrounding counties.

General Investment Tips

Never overextend yourself. You need to take some risks to ensure your success, but never jeopardize your own financial security by investing in real estate. Taking too many risks is a bad strategy. As with most business, you will make money if you buy low and sell high. Putting a little work into a property can pay off in higher sales or rental prices down the road.

East Windsor, New Jersey residents can make money in real estate. Choose your properties carefully and watch your nest egg grow. Real estate investors like Anthony Kolich can be useful examples for New Jersey residents.