A real estate investment is potentially a great way to make money. It’s what people usually consider a safe bet in terms of long-term, safe income. Still, this great end result can be disastrous if not well planned and organized.
It takes a lot of money and preparation, but most importantly, it takes luck and a will to risk and reap rewards. Just like any other business out there, there is this element of a gamble, because you are putting money into a vision that you don’t have guarantee will come to fruition.
Some rundown homes might not seem like a smart investment to you, but an experienced real estate investor will know that with a little home improvement it could pay off big time. That is why experience and good connection play an important role if you plan on investing smart.
Don’t be scared by this intro, you can make it easier if you follow certain steps and play it smart. Real estate investment does not have to be a scary prospect if you side with reliable partners like Xpera Group.
Don’t Be Unrealistic
It is very important to know exactly where you stand and how much money you can invest without stretching your budget to a bankrupt. It is very risky to take a leap of faith into a commercial real estate business with zero to none experience and without a pile of cash to back that all up.
Possibly the best way to start is with residential real estate because the initial investment is more feasible and a great way to kickstart your future business endeavors.
Work with a Real Estate Agent
Since you are pretty new to the market, relying only on your intuition and smarts can lead to success of course. However, it would be even smarter to consult reliable real estate development consulting firms and experts who have been in the game for a number of years and seen trends come and go. Their expertise and knowledge of the market is your best ally when you are starting out.
You should be cautious though, investigate their credentials first just in case, and more importantly, you need to be completely honest about the money you have at your disposal and the vision you have in mind so that the agent knows exactly what to look for.
Or in other words, don’t invest just for the sake of investing. You need to have an actual plan and program on how to turn that investment and earn more. You need to understand how much money you need to buy the property, how much to renovate, and finally are you going to sell it or put it out for rent?
You need to consider the current state of the market, the location of the property and its surroundings, and if it is even possible to make money. A real estate agent might offer some help with that.
Don’t Look Away from Old Homes
If you are a really savvy real estate investor you know that the best bargain to be made is from old, rundown homes. With the help of a home improvement company, you can spruce up any old house and invest your time and money to turn it into a brand-new, desirable home.
An experienced home improvement company will help you choose the projects that pay off the most. Ideal homes are the ones that only require cosmetic home improvement services like flooring, painting or landscaping.
According to the National Association of Home Builders, the home improvement investment should not raise the value of your investment more than 10 – 15% of the median real estate price in the neighborhood.
Work on Your Conversational Techniques
Being successful in the real estate game relies primarily on your ability to talk to people and hold sway in negotiations. When selling, you need to present all ups and downs, because every buyer admires honesty first and foremost.
Lying your way out can be helpful for quick gains, but it might hurt your reputation in the long run. It is important to highlight the best aspects of a property, but at the same time mention the negatives, because no listing is perfect and every buyer knows that.
If you are trying to hide something, it will look sketchy and possibly ruin the relationship you are trying to establish.
Don’t Be Greedy
As mentioned above, there are elements of prediction, luck and gamble in the business. When you are a beginner you need to be extra cautious and take careful steps.
It is best to play it safe when you start. Make a few less ambitious sales before you venture into a more experienced play which deals with bigger investments and bigger risks. There is absolutely no reason to rush, do it one step at a time.