Investing in real estate doesn't have to be brain teasing, hair pulling, and pain staking job. If anything, most people after learning about the basic things about real estate investing, they realize that it is doable once you educate yourself correctly.
Now, what are those "little things" that create "BIG results?" Well to start out with, consider these 5 must know tips to be a smarter, richer real estate investor:
1) Research the curve. The conception of a property market cycle exists. They are not myth. What goes down must come up, and vice versa, what goes up, must come down. Check into the recent historical price data for properties in the area of the country you’re considering investing in and determine whether the market is in a seller's market or buyer's market. Are prices rising, or are they prices falling? Or what's more dangerous on both sides: have they reached a peak? You need to know where the curve of the property market cycle is at in your investment area.
2) Get ahead of the curve. Once you know where you are in the curve, make decisions to get ahead. As a basic rule of thumb, professional real estate investors seek to buy ahead of the curve and sell when it is on top. There's an old saying, "buy when there is blood on the streets, and sell when there is greed."
3) Costs – calculating costs when buying property in a certain area is very crucial to predicting for what's ahead. For example, in some areas, they charge higher taxes, lower electric bills, or higher water bills. Controlling your budget is essential if you want to earn high returns from your property investment.
4) Area Potential – what "ingredients" make for a "delicious" profitable property investment? Many things. However one most important thing to consider is the local economy where you property is located. Is there job growth? Will there be new jobs sooner or later? Do your due diligence and call the economic development department in the county you're investing in. They give you a wealth of information in terms of income and job growth.
5) Think long term – unless you’re buying property intending to flip it for resale, don't listen to this. However, if you are buying property to keep it for its appreciation and rental cash flow, you have to realize you will be stuck with this property. Hey, as long as you're stuck with something that spits out money every month, you'll be happy. The reason why you must think long term is because real estate is a slow to liquidate asset, cash tied up in property is not simple to free up. Smart real estate investors keep all their properties because it continues to give them checks every month, the only time they do sell it is to buy a bigger property to get even bigger checks. How's that sound?