If you are looking at expanding your investment portfolio, real estate is always a reliable bet. In the beginning it can be a little overwhelming with the technical jargon, the flooding of information and a multitude of options to choose from. But, there is no need for this to become a stressful experience. Real estate guru Jeff Adams shares a few important tips to keep in mind while investing in real estate, particularly in today’s dynamic market.
- Assess your goals
Investing in real estate takes time and patience, so be prepared to put in a great deal of effort. Before investing though, determine what your intent is behind the investment. Are you looking at the investment as a personal second home or are you interested in flipping the property and selling it at a profit? Having clear goals will help you devise a realistic plan. Jeff recommends that before you decide what your goals are, you should research about the rental market and what people are looking at currently.
- Location, Location, Location
The location of the property can make or break the deal. Talk to the locals, check out the neighborhood and look at the amenities in the area. Ask other realtors where they think is prime real estate and find out what the sale price of properties are. A rule of thumb to go by is to stick to what you know, especially if it is your first time in real estate investing. Stick to the areas you know well.
- Buy at a Good Price
Jeff Adams believes that if you are able to buy a property for 12 times the yearly rental amount, it is a pretty good deal. Of course this number can vary, but it is an indication of a good investment. Do not get emotional with the property, but know all the facts about the property and make an informed purchase decision.
- Maintain Cash Reserve
Owning a house can result in a lot of unforeseen expenditures especially in maintenance. To avoid any unpleasant surprises in the future, keep a reserve ready as a corpus in the eventuality that sudden repair has to happen. Also make sure to keep a track of these irregular expenses, it will help you budget better in the future.
- Best Bet – Invest in an Apartment
After studying the 2014 real estate trends, Jeff believes that people are no longer looking at big houses but, renting small compact apartments or condos. This trend works out in your favor because you don’t need to invest a lot in procuring the property and getting it fixed up. It is an added bonus if apartments come as part of a gated community, or are close to commercial hubs!
- Partner with a Good Team
If you are planning to invest in real estate, then you will need a solid team behind you. So find yourself a good banker, lawyer, contractor, and realtor. They will help you make informed decisions and ensure that you take safe risks and protect your investments.
Jeff Adams and his team conduct workshops on a regular basis that you can benefit from. You have the opportunity to interact with him and have your doubts cleared and become privy to some exclusive insider information on profitable real estate investing in 2014.
