subject: Secrets For Succeeding As A Real Estate Investor [print this page] The success of a real estate investor depends on various factors persistence, agility, flexibility, and toughness. Even with all those attributes, the greatest secret of success for a real estate investor is Knowledge. It is your knowledge that makes your real estate business grow and prosper. As realtors in the Houston and Dallas area, we always encourage the real estate investors to upgrade their knowledge of the markets. This is why we offer a newsletter periodically with market information on a monthly basis.
This article will focus on some of the tips to succeed as a real estate investor
Learning from mistakes: You will make a mistake, and this is a given. The key is to reduce the impact that a mistake can have on you for the long term and growing from the mistake. When I bought my first project to do extensive remodeling and renovation, I totally underestimated the cost of that kind of extensive remodeling and renovation. I also did not take into consideration that this home was over 60 years old and could have hazardous materials. We learned the home had asbestos, and we had to hire a professional firm to remediate it. You should consider mistakes as lessons of wisdom and should always be enthusiastic to learn from your mistakes as well as other peoples mistake so that you can avoid such follies in future.
Value is a relative concept: As a real estate investor, there is no absolute value for a home. For different investors, they will have different values based on how easy is it for them to deal with heavily distress properties, Also, some investors could be willing to pay more for a area due to the fact that their operations and maintenance crews are more centrally located. My family prefers to invest in Southwest Houston because the homes are only 5 to 10 minutes from my fathers home. This allows him to easily manage a project or repair, and he may value properties in Southwest Houston more valuable to him when they become available to do that. You should learn what rents can be achieved by buying in a certain market, what average prices tend to be in the homes, and issues that arise from buying homes of a certain age.. The ideal way to determine true value of your property is to hire a professional realtor who can help you by providing precise comparable sales of similar assets and evaluating potential rents.
Getting a marketing team to help market your property: This is the most important of all secrets. If you are busy finding properties and closing deals, you may not have the time to market and show your property appropriately. Delegate the showing and marketing of your property to a agent to help you focus your time on the big picture. Michael Zuckerberg, the Facebook Founder, does not directly handle if the server fails. He has people who do this for him, so he can focus on developing the business of Facebook.
Smart remodeling can save you money: The next secret is to refurbish the exterior as well as the interior of your property to make it saleable. Always keep in mind that a well maintained property with attractive ambiance always succeeds in attracting tenants. Consider that the average tenant your marketing too watches the same programs on HGTV or A&E about beautiful homes. They have taste and preferences so you should figure out how to appeal to them. Now, we are not suggesting putting in flat screen televisions to bathrooms, etc. However, a working dishwasher, ceiling fans, and two tone paint could have your property rented much quicker than your fellow landlords who refuse to acknowledge that your tenants have evolving taste.
Persistence: The reality is that it is hard to find a great deal. It often involves inspecting 10 properties to even find one that you can make a offer on. In Houston, I often tell my clients that they need to act within a few days of a property coming on the market. The days of taking time fully evaluate a deal is rapidly vanishing. You are competing with investors from all over the world who are buying properties in markets sight unseen. This puts pressure on you as an investor to build your knowledge of the areas you want to work. You need to know what is a solid price and make a bid, but you have to acknowledge that another deal may go lower that you did not get. If you cannot remove that guilt or fear of the deal that got away, then this buyers remorse can lead to a paralysis of decision making leading to no deals for you. By arming youself with market knowledge and trust real estate advisors, you can act quickly to buy property. However, even acting quickly does not mean that you will secure every offer. The rule of 10 applies to offers as well. You may have to make 10 offers before you land your first property.
If you are determined to succeed in real estate, you should remember our words. Good luck and happy investing!
