Thinking about investing in real estate? What to know how the pros do it? Read on for the best secrets in the industry…
- Be certain. Like anything in life, if you want to be successful you have to really want it. Don’t be half-hearted or you will lose money. Know what you want to achieve and make a plan of how you are going to achieve it.
- Do your homework. No savvy investor will just wing it. Study any successful real estate investor and they will have a plan. They will know where the up and coming areas are before they are up and coming. They will know where the infrastructure investments and refurbishments are happening. They will know where the great schools are. They will have done their research a long time ago.
- Learn the lingo. If you want to be taken seriously you need to know what people are saying and what they mean. Don’t make a fool of yourself by assuming you understand what is going on when you don’t. Spend time with other real estate investors and listen to them talk. If you don’t understand something ask, it’s the only way you will learn.
- Write down your plan. Businesses need a plan. Investors want to see what you have in store for their money. Know where you want to go and how you will get there. Even if your business plan ends up being organic and constantly evolving then so be it, life isn’t set in stone, no plan ever survives first contact with the enemy. It’ll also teach you how to adapt and deal with mistakes.
- Treat it like a business. Real estate investing isn’t a hobby, it’s a business, treat it like a business. Be organised, be efficient and be serious. And get a good accountant. He is going to be invaluable later down the line.
- Don’t be emotional. Don’t let your heart rule your head. Remember real estate investing is a business. Just because you can’t see yourself living there, someone else can. Be prepared to walk away, don’t buy somewhere you love if you can’t afford it.
- Understand location, location, location. Just because the house is enormous and is under budget, know why that is the case. Never forget that location is the biggest influencer on house prices. If a house is in a good area the price will reflect that.
- Have an exit strategy. As the saying goes, hope for the best but plan for the worst. You want to be the guy who is two steps ahead all the time, not the guy frantically trying to catch up. That doesn’t mean go into everything expecting it to fail, it means go into everything knowing you have all eventualities covered.
- Know your limits. But don’t be afraid to ask for help, there is no such thing as a stupid question, the only stupid question is the one that you don’t ask.