Tips to Become A Successful Real Estate Investor
So you want to make your millions through real estate and don’t know where to start off? Maybe you are impressed by success stories of real estate investors and think that there are home owners waiting in queue to give you the equity from their homes. This scenario is basically way off the mark. All these stories highlight most of the end results while keeping under wraps all the hard work put in by the investors and the many failures.
Real estate investing is definitely tricky business simply because you can never predict trends in current pricing. It is a volatile market, one that is subject to swings from even the slightest of events. Property prices in one country can fluctuate on the back of happenings at the other end of the globe – political upheavals, natural calamities and economic downturns just to name a few. Hence, when you want to invest in real estate, keep your ear to the ground and follow a few guidelines in this regard that will surely increase your chances of being a winner.
Here are a few tips to help you along.
- Create a plan – This will be your starting block. Evaluate your strengths and weaknesses, the goals you wish to achieve in a given time frame and your main area of operations. Then outline the steps that you must take to get there. This includes the amount of capital that you intend to begin with. Will you be investing from your own funds and savings or borrowings from friends and relatives? You can even take out a loan on the property you intend to acquire. However, remember that you have to pay your interest on borrowings from rentals so you should estimate the rentals applicable in that location.
- Take small steps – There will always be a death wish to start really huge and close the first property with a bang. In real life this never happens. You have to test the waters and know what you are letting yourself into. When you break down your work into small compartments you will be more comfortable with each of them. Your initial moves should be a series of miniature actions created to reach your ultimate goals. By starting out small, you also reduce the quantum of starting investments and consequently the risks involved. For instance, if you are looking for a rental property, go for one that has tenants already. That way you will know the expected returns immediately and can calculate your cash flow.
- Have professionals guiding you – You might think that as a real estate investor, you are a one man army but again it is not true. The world’s top companies have professionals guiding them and you should take this as an example. Most businesses hire an HR manager who will recruit the best of staff and train them well. This is usually the opening step for any businesses and is the reason why top HR training and development experts like Shannon Pigram are always highly sought after. Similarly, you should find a good realtor to work with you, not necessarily the first one that you meet but one that works with a number of investors too. Get a realtor who will hear you out to begin with and evaluate your goals and objectives before agreeing to work with you. You will get an honest opinion on prevailing market conditions and where you stand. For more details of the worth of the realtor, check photos of previous properties dealt with by them on their profile on Instagram.
- Seize opportunities – When you see an opportunity, do not let it go. Even if you are under contract, there are many ways that you can terminate it later and get your earnest money back. Utilise that time on your hands to inspect and appraise the property and come to a final decision. Check out the various aspects on Pinterest. But once you vacillate and take time on a good property, there will be other investors who will step in and grab it before you.
These are some of the basic tips that you will do well to follow if you aim to make it big as a real estate investor.