For a new real estate investor in the real estate market, simplicity and safety are the key factors they should concentrate on at the start of their investment journey. Simplicity means not paying too much attention to rental property, because that means thinking about property management. Safety involves weighing your risks.
Most real estate investors will be patient enough to buy property, wait for a few months, refurbish it and then put it back on the real estate market. That’s a good thing since it is what gets you where real estate gurus like Jeff Adams are after many years of investing in real estate in different parts of the US.
A good real estate investor should research on the local market of wherever it is he or she wants to put their money into. Identifying a safe real estate investment strategy that will bring you huge returns on investments, requires the following critical elements:
Establishing a goal
What rate of return do you want for your investments? Your goal should not sound something like ‘as soon as possible’. It should be realistic and rewarding at the same time.
Understand the numbers
Study the average market prices and by how much percentage they are dropping or rising in value across the months. You can also look at commission rates from different real estate companies to know where to start if you want to enter the market as a real estate agent.
Choose your targeted location
Settle on one location where you are going to base all your research on. It makes work easier for you and reduces wastage of time.
Learn about relevant policies
Visit your city council offices or website to find out about policies that go hand in hand with real estate development. Inquire about construction and selling of property in that area. Such things will affect how you carry out your business in that area. Afterwards, you can have an appointment with a lawyer and ask for advice on how you can effectively (but legally) reduce the taxes you pay to the government so as to gain more net profit.
Choose to invest in idle property
As a new real estate investor, this is not the time to show your friends how much your bank account can buy. You are trying to multiply what you have into much more. That old house you disregard at the corner of the street is where your growth as a real estate investor lies.
No one is interested in such property after they have broken even. This means you have very few competitors if any, making offers on such property. You have more space for negotiations, so take advantage of it.
If you have a good mouth, you will be able to purchase aged property at way below its market value. Even 50% of the marked price is possible. However, you really need those negotiation skills engrained in you for that to become a reality.
Real estate is a gateway to financial freedom, if you use the right tactics in your business.
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