Do you have some money saved up and are thinking of investing it in real estate? 
If you're looking to generate passive income with a real estate investment, here's a guide to the steps you should take when investing in real estate for the first time.
Determine your business model and, from there, think about the type of property that would fit that model. Obviously, depending on the money you have or can get, it could be a studio, a 2, 3 or 4 bedroom apartment, a penthouse, a villa or why not, a commercial property.
Once you have decided on the type of property, you should decide what characteristics you want the house to have: how many rooms and what minimum surface area should it have, how should it be divided, in which neighborhoods should it be located?
We will give you an example.
You want to rent it long term, so you want to buy a 3 bedroom apartment, with a minimum surface of 90 m2, with a minimum of 1 bathroom, in one of the following areas: Valencia city, Silla, Catarroja, Picassent, Alcasser or Albal.
For a more profitable investment, avoid properties located on the street, in crowded and noisy areas, with a lot of traffic, or with large commercial areas and parking lots or industrial warehouses. They are not very attractive to potential tenants.
Preferable are homes in quieter streets, in green areas and with easy access to public transport. Ask a Novocasa Silla Real Estate agent to show you properties that meet these criteria.

Which properties have great investment potential? 
One of our real estate agents can offer you advice related to the area: the most sought-after neighborhoods, the areas with the greatest development potential or the neighborhoods most sought after by real estate developers.
A property with investment potential is usually a property that sells for 20-25% below market price but needs renovations.

The properties with the highest appreciation potential are also apartments where the electrical installation or plumbing has been recently renovated or the heating has been replaced.
From the outset, some costly investments are avoided and all that remains to be done is to correct the aesthetic aspect: the doors may need to be replaced, or it may not have been painted for years, or the floor may need to be replaced.
 

Promote your property
Finally, there are a few things you should do to find tenants for your renovated apartment.
Work with a real estate agent to find tenants as soon as possible, as they can help you with property listings and viewings if someone shows interest.

You've found the tenant and signed the contract. Congratulations, you have reached the end of the road. Starting the following month you will begin to collect passive income, less at first, but increasing as the loan principal decreases.

You can resume the process with a new property: there are always ideal real estate investment opportunities. Contact one of our agents to find out about the best investment opportunities in the Novocasa Silla portfolio.