Finding Opportunities In Real Estate Market

Written by: Lilly Cobal
08/16/2019

real-estate-plan

Investing in real estate has been the best thing that has happened to many new and experienced investors. These investors before they ventured into the real estate space may have had to face many conflicting decisions along their journey. For some though, real estate would have played an integral part of their future. Whatever the case, this industry certainly provides an opportunity for you as an investor, one way or the other.

First and foremost, you need to select the right type of real estate and have specific goals in mind. Why do you want to invest here? What does your end results look like? Some of the reasons people buy real estate properties for include but not limited to, diversification of wealth, shelter other assets, use equity for future growth and so on. You may have other goals in mind in addition to the above. Whatever your reason, it is important to be consistent and knowledgeable by doing the required research.

One of the most effective ways to reach your finance goals is to seek the assistance of a professional real estate investor or adviser. A detailed evaluation from these experts about a particular market that you have set your eyes on will let you know how well you are positioned to go ahead with the investment. A growing number of first-time investors are seeking advice and support from experts in this field. And you don’t want to be left alone. 

In almost all cases, investing in real estate will not make you rich overnight. However, you will get rich if you are willing to spend time, effort and money and do the hard work. There are techniques and systems that proficient investors use which will allow you to work smarter. Commitment to these techniques will dramatically reduce the time and energy that you may have to put to become successful.

If you are into real estate at this point and want to pursue this field as a full-time job or side gig, consider buying and selling home after renovating. These are homes that have a lot of potential in the neighborhood that it’s located in but are vacant, dilapidated and in need of repairs. They sell for cheap, and best of all, attract few bidders so the chances that the seller would agree with whatever price you come up with are high. By breathing life into such properties, you are not only making the house look livable and charming but improving the entire look of the neighborhood as well. So, how to go about renovating a house with potential? There are plenty of things that you should be doing here like hiring a contractor, choosing the right materials, planning, cleaning and much else. After you find a good deal, you will also need to finance the property. Throughout all these processes, you will need to have enough knowledge and at the same time confidence to put yourself through the entirety of the project.

How do you find a good deal on real estate properties in general? Where do you find money to invest besides your own savings and assets? Should you choose a real estate agent among all other things? These and countless other questions can pop up in your mind. The answer is through networking. Every successful real estate investor has been passionate about this business and the moment he or she finds a deal cannot wait to talk to the huge network of professionals around. Likewise, you will want to be aligned with people who have done the similar purchase and who have achieved success on the journey you are traveling. 

Many first time home buyers actually get started by teaming up with other home buyers and asking for referrals for agents and brokers. For investors who are into buying rental properties, it is necessary to network with property management agencies as well. Beginner investors will have to enlist the help of educators on how to structure the deal from start to finish. Investors who are planning to entertain the idea of partnership should tread with caution. Think through any agreement you make and better yet, avoid partnering with someone who you have know nothing of to begin with. The best way is to write everything on the paper whether you are buying, selling or partnering. You also make that the numbers on the agreement work with your current financial situation. 

Having a good relationship with your mortgage lender is another thing to consider during real estate investment. Lenders are an integral part of your team and can help you meet your financial needs quickly or eventually depending on your credit rating, past financial performance and other criteria. Since they aren’t directly competing with the deal or buying the house themselves, they can indirectly help get better interest rate and asking price as well. For example, if the property you are buying needs significant improvement, through mortgage brokers you can negotiate on rate, fees and other charges that are a part of the lending process. 

Adding a real estate agent to your team is another area that needs consideration. Agents are a solid source of leads for any real estate transaction. They often come across data regarding the property you are interested in, run comps and offer suggestions for renovation, price and much else. Their experience in the field gives them a lot of knowledge about the property and market in general. They can also interact with buyers and sellers who may be interested in the deal. Periodically, you will be able to get updates from them, and they play an active part in giving out the condition of the market at any given time as well. 

Finally, building credibility with potential buyers when you want to sell or with sellers when you want to purchase is extremely important in real estate industry. It is not something that you can do right away. This requires a lot of discipline and worthiness built overtime. 


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