Jeff Adams – How to Make a Great Real Estate Investment?

Real estate business is one of the most prominent businesses filled with opportunity. But once you set foot into this arena, you will be pulled into multiple directions with multiple sub categories of investments which might shift your focus from the work at hand. So the best thing to do is to find your niche and invest by minimizing your time spent on attending to a property.

Just like any other business, real estate too calls for maximizing your profits by minimizing the risks associated with it. Doing this is often easier said than done. However, just like other businesses, we have developed three hacks which will help you progress greatly into your Real Estate Property Business. These three hacks are as follows:

Check the returns: The fundamental idea here is to get cash on cash return value on your investment. Everybody knows that the real estate property is never a liquid asset. So in this business what you are actually doing is, taking out cash in a very liquid form and investing them into one of the most illiquid corners – real estate properties.

Now had you invested the liquid cash, you would have earned a fair return on that money. For example a 6 or 4 percent return value. When you are getting back the money from the real estate property, ensure that you are getting the same return value once you have sold it. This is who you calculate the profits and it is perfectly fair.

Lower the risks: Now every business requires you to take risks once in a while. It all depends upon when you take that risk and when you mustn’t. Analyze the market – is it a good time for you to be taking risks? Mostly, it is better to be a little risk averse and to take calculated risks, if the prospective gains are that much lucrative. But most of all the real estate investors would benefit if they are able to ward off the risk quotient to certain levels. So proper diligence tests, reviewing reports, and analyzing are essential before you make that investment.

When it comes to real estate properties, some of the properties such as tenant-in-common or TIC, or the commercial land, or the private real estate funds, are really high on the risk value. So always try to go for the properties you own totally or the ones where you are the sole proprietor. This way your risks and losses both will be under control.

Minimize your managing time frame: Some real estate properties are downright more consuming of your time and energy than the other ones, the college rentals, vacation rentals, and properties located in a bad neighborhood are the examples of this. Why not go for the nice and boring real estate properties instead?

Those properties require much less investment and they also go on steadily without you requiring giving much attention to it for a long period of time. Good shaped properties which promise steady cash flow are the best investments.

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