Becoming A Successful Real Estate Investor
Perhaps you’re just dabbling at the edges of real estate investing or maybe you’re looking for ways to amp up your exposure and influence in your region.
We know that investing can be filled with unknowns and more questions than answers sometimes. That’s why we wanted to take a few minutes to go over a handful of tips that can help you become a more dedicated and intelligent investor.
1. Set Investment Goals
A goal is different from a wish; you may wish to be rich, but that doesn’t mean you’ve ever taken steps to make your wish come true. Setting clear and specific investment goals becomes your road map to becoming financially independent. You are statistically far more likely to achieve financial independence by writing down specific and detailed goals than not preparing at all.
Your goals can include the number of properties you need to acquire each year, the annual cash-flow they generate, the type of property, and the location of each. You may also want to set parameters on the rates of return.
2. Never Speculate
Always invest with a long-term perspective in mind. Never speculate on quick short-term gains in appreciation, even in a heated market experiencing double-digit gains. You never know when a market will peak and it’s usually 6 to 9 months after the fact when you find out. Don’t chase after appreciation. Only invest in property that is reasonable and that will yield economical long-term gain.
3. Be Market Agnostic
We all know there are thousands of “markets” across the U.S. and each market fluctuates independently of one another, due to many local factors. As a result, you should recognize that there are times when it makes sense to invest in a particular market, and times when it does not. Only invest in markets when it makes sense to do so, not because you live there or you bought property there before. There’s an element of timing and you don’t want to buck the trend.
4. Use Professional Property Management
Never manage your own properties unless you run your own management company. Property management requires a solid understanding of tenant-landlord laws, good marketing skills, and strong people skills to deal with tenant complaints and excuses. Your time is valuable and should be spent with your family, on your career, and looking for more property.
We hope you have gained some value from this article and that you feel more confident moving forward in your investment decisions. If you have questions regarding Property Management, one of our team members will be happy to talk with you about it!
We are in no way providing or portraying legal advice or counsel. This is based strictly on our research based opinions. All legal inquiries and decisions should be discussed with your attorney/lawyer.
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“Always invest with a long-term perspective in mind. Never speculate on quick short-term gains in appreciation, even in a heated market experiencing double-digit gains.”