The real estate investing numbers are always impressive. Stats say the 90% millionaires become so through owing real estate. And, we all know landlords grow rich in their sleep. But do these landlords just put their money in any property to become a landlord one day? Even the most experienced investors go through the same analyzing procedures as first times do before investing in an apartment or a condo.
Here’s a list of 4 rules to begin your journey in the real estate investments.
1. Don’t invest in emotions
Remember a simple rule: What looks beautiful to the eye might beautiful or your money! It happens a lot in real estate. People fall in love with a property, which they simply can’t ignore because it caught their visual attention. Most of the early investors tend to make the mistake to invest such a property that only looks good! Remember the rule number 1 of real estate investing; Don’t fall for the emotional trap. Keep your senses right.
A property is beautiful for real estate investment when it generates good return on investment. So, keep your emotions aside while looking for the best property for investment and tune up your business mind for choosing the right property.
2. Save enough for Unexpected Costs
Real Estate Investing is a fruitful business if you do it right. The second real estate investing rule in line for a successful business is saving enough for unexpected costs. This also happens a lot with early real estate investors. They don’t keep up savings for unexpected costs. Unexpected costs come up in various forms. These may come up while buying the property or while renting it out. Fixing the damage, possible losses, market fluctuations, anything can come under unexpected costs. The idea is to cover the short term losses to gain long term profits.
One of the benefits of contacting Andrew Szalontai for real estate transactions is that he forecasts the possible unexpected costs and clearly tells it to the client. Once the client knows the possible losses or unexpected costs, he can ten prepare with better financial planning.
3. Invest In Time
Finding the right property takes time. There’s a phase of listing down the properties, then evaluating the properties for their pros and cons, and then comparing them with each other. And, at the end, you get the property worth investing in. After spending a lot of time in finding the right home, spend a little to find the right tenant. Don’t hurry in hiring a wrong tenant. Don’t rent to just anyone. The wrong tenants can turn your dreams or being a landlord into nightmares. They damage your property, don’t pay the rent on time, and force you to evict them.
Check credit possibilities of tenants, check for criminal backgrounds and profession.
4. Invest for Neighborhood Potentials
Neighborhood potentials pay an important role in real estate investments. Invest in the neighborhood which is likely to increase your property’s value too. The signs of a neighborhood with good potential are available of basic necessities in and around it such as school, medical facility, eating places, grocery stores, shops, job growth opportunities, etc.
Nothing beats an investment opportunity near your home. Get in touch to know why…
We hope this article cleared the wind for the first or second time real estate investors. Apart from self-awareness of getting knowledge about real estate investments, one must not ignore the help of a professional real estate agent such as Andew Szalontai, who can get you through the rough phases of real estate investment process easily.