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How to Get Started With Real Estate Investing in Chicago

How to Get Started With Real Estate Investing in Chicago

Nationwide, renters spend an estimated $485 billion in rent every year. The real estate industry is booming, so now's a good time to get in the game.

When it comes to investing in real estate, there are some preparations you need to make before you can hand the keys to your tenants.

So, keep reading to find out how to get started with real estate investing.

Prepare Financially

The price of newly listed homes has climbed 26.5% since March 2020. So it's important to prepare for the expenses around buying a real estate investment property. 

You need to decide how much you're going to put down for a deposit and how much of your savings you're going to use. Then you need to consider what type of loan will work best to finance your investment.

Understand the Market

You need to fully understand the market you're investing in. If apartments are the hot item right now, you need to look into apartment complexes, not two-story houses.

Knowing the market and what people are looking for will help you invest in something that people will want to pay for.

Location, Location, Location

Once you've got the finance side sorted, you can start looking for the perfect investment property. The location and surrounding area are a big deciding factor for many prospective tenants. The location can make or break your investment property.

You need to keep your prospective tenants in mind when scoping locations. While the property itself needs to be the highlight, the surrounding area and attractions will help you draw the right crowd.

Also, keep public transport options in mind. Apartments near bus stations or train stations will be a selling point for people who don't want to face traffic. If you're looking to rent to families, you need to keep amenities like parks in mind when picking a location.

Tenant Screening Is a Must

Your tenants will be your source of income, so you need to make sure they're able to pay their rent on time. You also want to make sure you pick the right tenants for your investment. If your chosen tenants chase away any other potential tenants, then they aren't a good fit.

This is why tenant screening is so crucial. During this process, background and credit checks are run on the prospective tenant. If nothing pops up in this process, then you can rest easier that your tenants won't need to be evicted at some point.

Real Estate Investing Made Easy 

When you're just getting started with real estate investing, it can be quite daunting. You need to be willing to spend money to buy property before you can start making any money back. Luckily the rewards are well worth the risks.

If you're looking for some real estate investing tips, feel free to contact GC Realty & Development today! We have coverage all over the Chicago Area, including Kane, Cook, Lake, Mchenry & Dupage County, as well as a large portion of the city, including downtown Chicago.

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