The term investor is most often misused when it comes to real estate. The apparent opportunity is often under calculated and the gain is undefined. This is not investing it’ called gambling.
Many investors are unprepared, undercapitalized, and overwhelmed, all of which represent a recipe for failure. By adhering to a few key rules, success in real estate investing is within reach. With the heightened number of short sale and foreclosure properties a new wave of novice investors have been lured into the market.
My suggestion is that you must study and understand the market.
• Where are prices headed and how have they arrived at their current levels.
• Track average supply and demand in the immediate area of the investment, accurately determine comparable properties rent or resell for in you target area.
• Purchase with a complete plan in mind. Most seasoned investors state that the “money is made” on the acquisition, not the resale.
• Calculate the actual costs of the purchase in advance
• Quantify the exit strategy, Commit to the holding duration and the costs associated
• Calculate earnings during the holding period
• What’s the strategy? Will you sell to another investor, remodel the property, or use it as a long term rental
Clearly define the variable costs and expenses encountered during the process. Include management, vacancy, taxes and maintenance costs as well as potential legal costs.
Current values are high and prices are low. A disciplined plan will insure your success. If you are considering investing in real estate and would like assistance in developing your strategy feel free to contact me. I will review your plan and share with you mine. It’s good to share your real estate investment strategies this way with others I always find a new detail some how that I can implement
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