Chapter 7: How to succeed in real estate investments

In this chapter, we get some tips on how to really succeed in real estate investments. If you apply them, you too could be successful.

These aren’t the only success tips. You should, therefore, strive to read and research and get more tips. The real estate industry keeps changing with time. You have to keep up to date with all these changes by staying informed.

Success

Succeeding in real estate is a possibility. You just need to learn the necessary tips to help you earn your passive income through real estate investing.

Finances

There are so many people who are interested in real estate investments but fail to get in because of lack of finances. This is one investment that will require that you have adequate funds throughout. It’s not enough to have money to purchase a property only. You will also need money to maintain the property.

Most investors depend on loans from different financers. If you want to ensure that you do get your loan, you have to be prepared. You have to research different financing options. This will help you focus. You then need to find out the eligibility requirements for each type of lender.

If you have a bad credit history, there may still be lenders willing to offer you a loan. Alternatively, you can first work on improving your credit scores before applying for a loan.

Consult with professionals or other experienced investors on how to make your loan application a success.

For each type of real estate investment, there are specific lenders that you can find. For instance, if you want to invest in residential real estate, there are lenders who can facilitate this. It is always advisable to find at least three lenders and compare quotes and terms before making your applications.

You will not get a loan unless you have secured a property to buy. Most financers may hesitate to give a loan to someone who is not exactly sure about what they want to do. You can’t go ask for a loan if u are not sure whether to invest in residential or commercial property.

For most lenders, you definitely have to go with a plan and a tangible property in mind before you can get a loan. You should also be prepared to convince the lender to give you the loan. You will do this by presenting yourself with confidence and also explaining your plan to the lender. They have to see it as being viable.

Always stay ahead in the industry

Real estate investments have a very high probability of profitability. The trick is to learn as much as possible about the industry.

You have to stay ahead at all times. Every year, there are new developments in real estate. There are bigger and better opportunities. You need to stay updated on every single change that happens.

Research is a good way to stay ahead. However, you don’t need to spend hours on the internet or in the library only. Another way to keep updated is by attending seminars and conferences. These are normally held multiple times in different states. They normally don’t cost too much and they are very informative.

Seminars and conferences will help you learn a lot. At the same time, you can use this opportunity to network and meet the gurus in the industry. You can even find a mentor who can help you out.

If you are just starting out, seminars and conferences will offer a great learning platform to get you started off in the industry. If you are already an investor, this will help you stay ahead and know how to make the most out of your investments.

These seminars and conferences will also help you establish the best kind of property to invest in based on your personal circumstances. You will also get to learn how to go about making new investments and realising your full potential as a real estate investor.

Establish and develop your niche

For any type of investor, the key to success is to establish what you are really good at and invest in that. It’s good to try out different things when you are starting out. However, you should identify your strengths and weaknesses and establish what you excel at. Some people are great with rental property investments. For these people, all they have to do is to ensure that they stay ahead in that sector. They have to better themselves so as to succeed.

There are other investors who excel at flipping properties. They too have to ensure that they nourish their skills and excel in this area.

Before making your investment in real estate, list down your strengths and try to establish what type of investment will allow you to use these strengths and achieve your goals. You should also invest in your area of interest. This is because you are more likely to excel if you work in an area that you enjoy.

Pricing

One thing that all investors (especially ones who own rental properties) will tell you is that pricing is very important. Never be greedy and try to overcharge your tenants. This may leave you stuck with vacancies.

You should carry out research and charge the right rent according to the location of the property. If you want high rents, look for locations in good neighbourhoods and ensure that your property meets the set standards of the area.

However, it is much easier to find low priced houses. This is not a smart investment though. There are risks of insecurity. You will also have to charge lower rents and you may end up spending a lot of money on repairs and maintenance.

Always be prepared for unexpected emergencies

When preparing your budget, you should always leave enough allowance for any emergencies that may occur. Don’t just cover the basic costs. Leave some room for flexibility.

There are many things that you can’t plan for. You may make a budget for repairs but you may never be able to plan for accidents that may cause damage around the house.

If you aren’t adequately prepared even the smallest emergencies may overwhelm. There is also a probability that you may start making losses trying to cater for the emergencies.

Associate with the best

This is an old business trick that has worked for many people. If you want to be a successful politician, you have to associate with people who have succeeded in the field. The same applies to business. If you want to succeed in real estate, you have to associate yourself with successful investors.

By associating with successful investors, you will get to learn a lot from them.

Associating with other successful real estate investors will help you in becoming equally successful.

Treat your investment as a business

One thing that you will learn in the course of your investment is that you are the only person capable of fully taking care of your investment. You may hire people to work for you but they may not be as dedicated as you.

You have to be fully involved in your investment. Commit yourself physically, emotionally and also financially. Even if your investment is just part-time, this is still your business. You have to ensure that you give your best effort in order to succeed.

Experience

Real estate is not the kind of investment that you try out for six months and then give up if you don’t get to see the millions of dollars in profits. You need to realise that it takes years to be successful.

You are likely to make mistakes in the beginning but you should never give up. Learn from your mistakes and you will grow as an investor.

Wrapping up

Now that these factors have been presented to you, you probably have the greatest asset of all in making the right investment decisions. It takes time and if you hang in there long enough, you will be able to see results soon.

Wish you the best of luck!