If you are looking to invest in real estate, you should take a second before diving in head first to avoid common mistakes. Partnering with someone that is a current real estate investor is a great way to get into the industry, but if you do not have that luxury, then you can use these five things as a jumping off point in your research.
Should You Trust Real Estate Agents for Guidance?
A real estate agent can provide valuable advice and give you the opportunity to pick their brain. However, remember that a real estate agent is trying to sell the property. You can always ask them for their professional opinion, but you should probably take it with a grain of salt.
Don’t Be Afraid to Invest in Bigger Properties
It is understandable to have reservations about investing in larger properties. However, according to Steven Kaufman in “4 Ways to Kick-Start Your Career In Real-Estate Investment,” bigger properties tend to appreciate faster than smaller properties. As Kaufman notes, the great thing about real estate in comparison to the stock market is that when the market tanks, you still have a tangible asset. If you find a great deal on bigger property, don’t wait for the stars to align to pull the trigger.
Finding the Right Property Management Firm
The more properties you own, the harder it is going to be for you to avoid spending your entire weekend at these locations fixing things. That is why you should hire a property management firm that can take a percentage of the rent roll in exchange for handling these services. Make sure you look into the quality of company before deciding to go with a one.
Having the Patience to Not Sell
You may be eager to make a profit on your property immediately. However, your properties may continue to go up in value. That’s why you should be patient and monitor market forecasts. Determining when the right time to sell is something you just learn with experience. But rather than make a marginal profit, you should aim to make as much as possible.
You Are a Business Owner
One of the reasons why so many landlords end up getting out of the industry is because they don’t realize they own a business. This means optimizing it for maximum efficiency and finding the best system that allows you to manage your life more effectively. Consider building an excellent team to help handle bookkeeping and other daily duties that can ease the burden on yourself.