Investing in Real Estate may not be easy, but apart form any challenges, it can be worth it and rewarding. Below are some of the things to consider when starting your Real Estate investment journey.
Knowing your market. Every real estate investor should have one or more target markets. These are the neighborhoods where you know the types of properties that likely need repairs. Know the property values in the area. Understand the pros and cons of the neighborhoods.
Knowing your market allows you to identify opportunity quickly and take immediate action when deals present themselves.
Define your exit strategy. Your exit strategy will impact many parts of your investment – cash flow, return on investment, marketing and negotiation. To be successful in your real estate investments, you first need to define your exit strategy or strategies.
These strategies are the most consistent and conventional methods of investing in residential real estate. This includes buy-fix-and-flip, buy-and-hold and wholesale.
You should pair the strategy with your own tools, assets and comfort level. Knowing where you want to go will help to define your next step in the journey.
Trust your numbers. Numbers do not lie, so don’t try to fool yourself. It can be tempting to believe that you can trim a few thousand dollars here or there from the cost of your project. Thats why it is important to use a checklist or construction generator with predetermined values on it. When you run your calculations, stick with the values that these tools generate. Even though it is tough to walk away from a deal, sometimes the best investment is the property you never bought.
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