More millionaires have built their fortune in real estate than in any other line of business. Investing in real estate makes sense, people will always need a place to live and to work and as the saying goes they aren’t making any more land. When it comes to real estate investing then location is everything and one of the better markets to sink your hard earned dollars is in Chicago. Investing in the Chicago real estate market is a great idea, there is prime real estate and the city has a growing economy, you can drastically increase the value of your investment in only a few short years.
Where to Buy
Before you start scanning the MLS listings for an investment property you need to take some time and think about what you are looking for. Before you start looking you need to have answers to the following questions:
- Location: Location is everything in real estate so you need to look at various neighborhoods throughout the city and decide where you can get the most bang for your buck
- Market: This ties in closely with location but how is the local market doing, it can vary drastically. Is the city thriving and doing well, is that particular neighborhood on the rise or on the decline. Look closely at market conditions.
- Money: Most investors don’t pay cash for their properties they are financed, however the rules are different for investment properties and you’re going to need a bigger down payment. You will need to analyze how much capital you will need to get into the market.
- Type: Are you looking for multifamily rental property or some distressed properties where you can make some money doing a quick flip? The answer leads into our next point.
- Management: Are you going to look after the property yourself or hire a management company to look after it.
Find an Agent
If you’re not a local real estate agent yourself who understands the Chicago market then you need to find one. A good agent is absolutely invaluable when it comes to finding properties and connecting you with other investors or service providers in the real estate industry. They can also help you at the negotiating table if negotiating isn’t a big part of your skillset.
Investing in real estate can be a lot of work, you need to do some thorough research before you make an offer on a property. At the same time you need to act quickly or you can risk losing the deal. It’s all worth it when you start seeing positive changes in your bank account.