Investing in real estate can be a great way to earn some money, but you’ll have to be really smart when you’re acquiring investment property. How much you’ll make will largely depend on the time you spend attending to the property and the size of the risk you’re willing to take. If you’re just now getting into real estate, then you should know that you’re going to need a lot of money. On top of that, you’re probably going to be spending a lot of time attending to the property. Nevertheless, if you make smart real estate investments, all of that hard work and planning will definitely pay off.
You need to be completely honest with yourself about your financial situation. You can't just decide to jump into commercial real estate game if you're living your life paycheck-to-paycheck. It's quite a risk to make that leap, so it would be better if you decided to save up and invest in something realistic.
“Residential real estate is your best bet if you’re a first timer. Investing in a foreclosure or flipping a home is the best way to get your feet wet as an investor,” advises Richard Lusted, CEO of SiamRealEstate.
Consult a Real Estate Agent
Even though it's been around for centuries, it seems in the recent years real estate investing grew and developed exponentially. Therefore, it's good to find a real estate agent who witnessed all the changes that happened. Getting a professional agent with a lot of experience can help you a lot if you're just starting out. However, you should remember to check their credentials.
Since the majority of real estate agents get paid on commissions, it's in their best interest to help you. The right real estate agent should recommend you the best deal based on your personal preferences. Keep in mind to be honest about your financial situation, so the agent can know exactly what to recommend.
Have a Game Plan
Before you go and start investing money in a property, you’ll need to know exactly what you want to do with it. Let's say you bought a house that you need to redecorate and do some improvements on. After the house is finished you have two choices: To sell the house for a bigger profit or keep it and rent it.
This is why you need a game plan. Decide how much time and money you are ready to invest and decide if you want to keep the real estate or sell it. These parameters should help you determine which property is best for you.
Improve Your Communication Skills
At the end of the day real estates are nothing but a trade business. Therefore, your communication skills should be at a maximum level. Remember that negotiation is a key part in any trade. You need to know how to sell your property at a reasonable price if you want to earn a bit more. There is no better way to sell something than presenting it in its best light.
Keep in mind that even though lying sometimes goes unpunished, you should always be truthful with your future buyers. You can never know when you crossed a line and left out a crucial detail that could trigger a lawsuit.
Don't Risk It
If you're new to investing in real estate, the safest thing you can do is invest in properties that have a proven cash flow. There is a thing called 'speculative investing', which is basically buying properties and then waiting for their price to go up. However, if you’re a beginner and think that an investment opportunity is too risky, then you should avoid it. Also, it’s best that you don’t rush into new investments. If you’re starting out, you should take it one step at a time.