Getting Started in Real Estate Industry – Choosing the Right Property

The 2015 real estate market is perfect for a new investor tips says Jeff Adams about Real Estate industry. The industry expert is a veteran of investing with more than a decade of investment experience under his belt. Over the years, he has identified a number of things that a property should have to make it a profitable investment. He is willing to share a few of his trade secrets with us and here is what he wants you to know.

Location Is Important Location is critical to a real estate investment.

To the investor, however, location means a different thing completely. For a real estate investor, the property should be located in an area that will exhibit sustained growth. For example, a commercial property should be located near to highways and transport hubs while residential properties should have schools, markets, and highways in close proximity.

Ideally, investors should choose properties that will show long-term growth, irrespective of the current economy and market. Expenses Can Eat into Profits Buying expensive says Jeff Adams #1 Real Estate Trainer. Apart from down payments, real estate investors will also have to bear additional costs like renovations, property evaluations, hiring of property management, tenant advertising, background checks, property maintenance, security, legal expenses, etc.

These fees and expenses can change without prior notice and they will cut into your profits. Before you invest in any property, Adams recommends you evaluate purchase prices, additional expenses, and long-term expenses. He also recommends that you try to control your expenses as much as possible to reap long-term profits. Value-Based Plays No matter how good property, it usually does show damage after some time. States that you may have to add value to the property after a few years, to make it attractive to buyers. This will also depend on the status of the real estate market.

As a result, investing in these homes is a good idea as they offer resale value and rental opportunities as well. However, the demand may change to two-bedroom or three-bedroom dwellings. In this case, value-based plays like cosmetic changes to the house facade or adding an extra bedroom may make your home double in value.

Exit Strategies Buying means spending money. However, you should also have a quick and easy way to convert the real estate property into liquidity. For most investors, renovation and resale is the quickest way to recover their investment. Apart from this, you should also plan alternative exit real estate strategies like lease-to-buy options, to ensure that you recover as much as possible from your investment.

Adams states that you can easily find property anywhere in the US. Just make sure that you evaluate each property for these tips. By following these tips, you will protect your investment and you will definitely be prepared for any change in the real estate demographic.

Tags: ,