Real Estate Investor Noah Debonair Shares 3 Things First-Time Home Investors Need to Know
BOSTON, MA / ACCESSWIRE / November 5, 2021 / First-time home buyers are usually looking for a place to stay and a family to raise. First-time real estate investors are looking for a property that will make passive income.
Buying an investment property to earn rental income can be risky. While real estate investing may seem like a smart financial move, it’s easy to make mistakes that will cost you along the way.
Here are 3 key factors you need to know before delving into the world of real estate investing:
Understand how banks process your loans
When people start off in real estate investing, they tend to focus more on how much money they can make. But, it’s more important to understand the loan process and what type of information the bank will ask of you. Typically, you’ll have to provide pay stubs, tax returns, bank statements and more.
If you understand how banks calculate your debt-to-income (DTI) ratio – which is your total income minus your total expenses, you will then have a better understanding of how much of a loan a bank will approve you for. This helps narrow down which areas you can look in that have homes of said value.
Knowing this process will prepare you to put your best foot forward as you start your journey in the real estate investing industry.
Understand cash flow
Cashflow is how much money you will generate from the property after all expenses have been paid. Too often, people jump into real estate investing without properly calculating how much positive cash flow (profit) they will generate.
Property expenses (i.e, water bills, electricity, property management, etc) and repairs are frequently forgotten when new real estate investors calculate cash flow. To be a successful real estate investor, you need to know all the variables to properly calculate the profit you will make from your rental property.
Understand the importance of location
As a newcomer to real estate investing, it’s crucial to be tuned into the area you’re doing business in. For example, looking at the percentage of renters versus homeowners could indicate whether the property will have a high or low vacancy rate . If 70% of the area is comprised of homeowners and 30% renters, this is a red flag.
As a new real estate investor, you always want to do business in areas where the renting population is the majority.
About Real Estate Investor Noah Debonair
Noah Debonair is a real estate investor from the Cambridge, Massachusetts area. After graduating from the University of Massachusetts Amherst, Noah worked at several local universities within their finance division. He started real estate investing during the big economic crash in 2008.
He bought his first property in 2010 and was using it as a hybrid, where he was living there and renting out one of the units. That’s where he learned how to use real estate as an investment strategy, build a company around passive income and be a part-time investor.
Noah Debonair has been doing real estate investing for over 12 years. Eventually, he started his own real estate investing company, Mint Realty Group LLC.
Today, Noah has added consultations to his list of services. He helps people who want to get started in real estate investing and use it as a way to find passive income. His extensive background helps him to work with his clients to create customized plans based on their financial health and long-term goals.
If you’re in the Massachusetts area or simply want to learn more about real estate investing, get in touch with Noah Debonair .
Company Name: Mint Realty Group LLC
Contact Person: Noah Debonair
Social Media Link: https://www.instagram.com/debonairmktg/?hl=en
SOURCE: Mint Realty Group LLC
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