As a finance professional, I am often asked questions about investment in property which remains a key area of focus for people looking to invest for growth. Any successful entrepreneur will have their own way of approaching the factors that they consider important. In this article, I have put together some of my top tips for successful real estate investing.
Maxim Bederov gives his tips for successful real estate investing
Buy Property in Up-and-Coming Areas
Take a look at the areas that are likely to increase in popularity. For example, is there an area of regeneration in the city? Have transport links and infrastructure recently been improved? Even in a poor housing market, if you do your homework you may be able to pick up a good investment property at a knockdown price and watch the value soar as people look to move into the area.
Stay focused on your budget
You must make sure you get your numbers straight from the start. My advice, if you are not great with math, is to either take a class or hire someone who can help with this. There are a number of things that may not be completely obvious to a novice real estate investor: Have you considered legal fees, labor costs, materials and utility bills? What other expenses might you incur? As with any other investment you want to make sure you know your potential return before you jump in.
Networking is a word that used to inspire dread and although it has moved on since the early days, many novices find the idea off-putting. The fact is that successful networking is one of the best ways to get inside knowledge on the real estate market and learn from the mistakes and successes of experienced real estate entrepreneurs. Most modern networking events are designed to be fun as well as providing a great opportunity to connect with other property investors. Ignore these at your peril – they create unparalleled opportunities to gather information from experienced professionals and can make all the difference when developing a successful property portfolio.
Be careful at auction
Auctions are one of the best ways to get a property at a knock-down price but you need to keep a tight rein on your emotions. Make sure you have viewed the property, looked at the condition, had any surveys necessary and so on. You will want to know how much work you will need to do and how that impacts on your ROI (return on investment). Still happy? Great, decide on a maximum bid and then stick to it.
Maxim Bederov’s top tip for real estate investments:
Own what you don’t know!
This is probably the most important piece of advice I can give you. If you are new to real estate investments then expect to find a lot of things you don’t know – never be afraid to admit this and seek help and advice from a professional. Real estate agents and investors will be able to help you decide if that property is one that will give you the return on investment you are looking for. Do be aware, however, that a real estate agent does have a vested interest in the property, so be sure to do your own research too.
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