Successful real estate investing requires a clear vision. For example, what type of property and neighborhood do you seek? Success also requires that you operate with respect and integrity because your professional relationships will build your business. Finally, do your due diligence to ensure the property is exactly what you want and doesn’t have hidden issues that will cost you later.
Choose a high-quality property over several lower-quality properties. Don’t be afraid to tour many properties to find the one that will give you the best return. Don’t look at the biggest house in the neighborhood because the market for selling or renting these homes is relatively small. Find great neighborhoods and undervalued homes. If repairs are needed, determine if you can do them or how much it will cost to hire someone prior to purchasing the property. Don’t make hasty, emotional decisions on a property.
Build a Reputation
If you have integrity and are honest with those you work with, you will build a positive reputation, which will allow you to build key relationships with individuals in the industry, such as real estate agents, lenders and property managers. These individuals will support your business and give you insight into valuable investments or industry knowledge.
Before purchasing a property, have it fully inspected by a reputable inspector. Have the land surveyed to prevent property disputes with the neighbors.
Also, look for cracks or leaning in the foundation and outside of the house. Look for new paint that may be covering water damage, especially on ceilings. Bring a marble and let it roll along the floors to ensure that they are level. Seek guidance from a licensed contractor about possible issues you or your inspector found.
Whether you are embarking on a new real estate investment journey or you are building your investment portfolio, approach your business with a clear vision of your desired property, build a strong reputation of integrity, and do your due diligence to ensure that you receive the highest rate of return on your investment.