15 Dec Turn Your Real Estate Investing Into a Success Story
Investing in both residential and commercial real estate requires that you pay attention to your values and your costs; Start by not overpaying for property. Look at the property values yourself and make sure the value is what you expect. Then don’t overspend / over improve the property unless you are 100% sure you can get the money back at the resale. It is important that both of these factors are closely scrutinized to ensure the project will prove to be a good deal for you.
When you invest in real estate to rent the property, make sure you are able to get your money back within a reasonable amount of time, or you are ok not being able to get it out. Some people use longer term holds as a tax deferment tool, so if that is your goal you may be ok leaving money in the properties. Just remember that If it takes you many years to get the money back in rental payments, then it will be hard for you to use the money on anything property related.
Property values go up and down; don’t make the assumption that it will go up only. This is a bad assumption to make when dealing with real estate. Every deal should be looked at with multiple exit strategies so if you do happen to time the market wrong and find yourself in a downturn and unable to sell the property, you have a backup strategy to weather the storm. One back up strategy is to look at all of the deals as possible rentals if things go bad. Make sure the rents you would be able to collect offset the expenses / holding costs you will have to incur.
If you are not proficient in basic construction and all of the systems that go with a property, a good idea could be to hire a professional inspector to come out and see the property you're thinking of putting your money into. You may think that you can just look over the property on your own to find problems, but if you're not trained you may miss some things. When problems are found, you should make sure to get some money off of the property and or have the seller fix them for you. Good Luck and remember to call Summit Capital Management for your real estate funding needs!
You should have a handyman when you buy a real estate investment property. Otherwise, your extra cash will be depleted by high repair expenses. A good handyman can help make sure any tenant emergencies are taken care of after business hours. Build your real estate investment buyers list with online ads. For example, you could use social media, online ad sites such as CraigsList and/or the local newspaper to draw attention to the properties you have on offer. Be sure to retain contact information for every person who shows and interest so you will have a well-rounded contact list as you accrue new properties.
Hopefully, this article has helped you see that there is more to real estate investments than really meets the eye. It is important that you take baby steps when you finally set your eyes on a property and use what you have learned today. After all, the more you know, the better your chances of turning a profit.