If you want to invest in real estate successfully, you need to do your research and avoid cheap properties or speculation. You also need to invest in the long term for the best success in growing your investment empire.
If you want to start investing in local real estate investment properties, take some advice from the experts and:
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Study twice, act once –
In carpentry, there is a saying: “measure twice, cut once.” That simple saying simply means that when you double-check your numbers and think about what you are going to do, you to do less work and you spend less time correcting avoidable mistakes. This same rule of thumb holds true for real estate, too.
No matter where you are investing, you want to do your research first so that you don’t end up making a costly mistake. When considering buying local properties, look into the area and market.
Is the population in your target area growing faster than the national or state average? Is the area being renewed or staying much the same? Are baby boomers flocking to the area? All of these factors are important ones to monitor when looking into areas to invest in real estate.
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Invest, rather than speculate –
Many new real estate investors don’t realize that there’s a difference, but there is in fact quite a big difference. Investors who speculate buy local real estate investment properties because “if these pieces of real estate increase in value I’ll make a fortune.”
If your business plan relies heavily on the word “if”, you’re speculating rather than investing.
Investing means that you will make money regardless of the markets or the economic status of the country. Investors make money in all types of conditions, while speculators end up losing money when the economy gets a little shaky. Aim to invest.
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Be wary of cheap properties –
Some new investors will snap up property that is simply the least expensive in the neighborhood. The problem is that most inexpensive properties are inexpensive for good reason.
They may be in a bad neighborhood, they may be so poorly maintained that they require tens of thousands of dollars in renovations, or they may have liabilities of problems you’re not yet aware of. Before you buy into cheap real estate… find out why it’s cheap and realize that “cheap” isn’t always good.
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If you’re in Phase 2 of your investment business, it’s time to buy local real estate investment properties for the long term –
Yes, house flipping (or even flipping real estate contracts for quick cash profits) is all the rage in the first phase of your investment business, but after you’ve progressed into the high 6 figure profit margin, it’s time to realign your real estate investment business plan, and “go long”. However, keep in mind that as of now, your overall plan is to invest for the long term.
Not only will this mean that you won’t panic every time the local real estate market takes a sudden upturn or downturn, but when you plan for the long-term future, you will simply make more money.
I have nothing but complete admiration for your use of talent, courage
and desire to be educated in the unique methods of real estate. I was at the right place, at the right time. #839th child born in Coral Gables, (before it was a city), Dade County, Florida…pa was a realtor, and I started buying Ft. Myers age 18…I needed crooked family members (brother had married an indian and she and family took everything, even plants after he installed bathrooms for 13…how could he?…Then a daughter married first an alco, then a crack addict. There went $60K in credit cards (stolen) when supposed to be renovating ahouse in Orlando….(He is serving 15 years)…but when credit is shot…you never get back. All my houses in C. G. are worth $1 million EACH today…Will Rogers said, “buy but never sell”…listen to enough stories, “He is out of a job, we can’t pay the rent, I’m pregnat”….even the minister I gave $4000 to construct million dollar homes in S. C. gave me back $100.00.
I know, once a victim, second time a volunteer… I long to renovate again….and I shan’t be surrounded by evil again. Even my mother in law stole my checks, and put them in HER account. She lived to 103. God didn’t want her, neither did the devil… Any hope? with all the foreclosures here, and one here in Rivers Edge…. You are fabulous!