Wealth through Property Investment: 5 Tips for Succeeding in Real Estate
Monday, December 2, 2019, 6:00 AM | Leave Comment
It doesn’t really matter if your goal is to become an investor, or if you’re simply sitting on a pile of cash and you want to put it to good use, real estate is still one of the best and most lucrative options you have at your disposal.
As the need for more commercial and residential properties continues to rise across the globe due to rapid urbanization, and especially in emerging economies, real estate continues to be one of the most stable investments for novices as well as experts looking to diversify from other asset groups.
That said, this doesn’t mean that success in real estate is a guarantee, as there are many challenges and hurdles on the road to entrepreneurial superstardom you will have to overcome, which means that you need a strong battle plan.
Today, we’ll be looking at the five key tips that will allow you to build long-term success in the real estate industry.
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Choose your short and long-term approach
Every new investor needs to start somewhere, and it should usually be somewhere small but stable. After all, rarely will you meet an investor who got rich on their first property, but you just might meet one who almost went under because they were overly eager. This means that you need to plan your approach carefully and strategically. Start by deciding what kind of ROI you’re looking to produce.
If you choose to buy a property and become the landlord, you can quickly create a steady income source with a moderate annual ROI, something like five to ten percent. On the other hand, if you want to make a “quick buck” and move on to other investment opportunities, then you might choose to buy a property, revitalize it, and sell it. The former is a more stable option for new investors, of course, but the latter might generate a substantial ROI, provided that you research the market and the demographic, find the right property, and attract affluent homebuyers.
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Research emerging markets
Knowledge is power in the real estate industry, as you need to know exactly when and where to invest in order to maximize your ROI, but also what type of real estate assets have the highest potential. Remember, depending on the socio-economic climate of a region, as well as the industry trends that shape the market, certain real estate assets might be more feasible than others. For example, buying a commercial property in an up-and-coming business neighborhood or a bustling business hub in the heart of the city would be a better decision than investing in a residential property.
It’s important, therefore, that you continue to do meticulous research, and discover the unique advantages and disadvantages of every market you’re interested in, so that you can prevent the common pitfalls and maximize your investment as quickly as possible. This will also allow you to find the best opportunities and diversify quickly.
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Find the best deals and diversify quickly
Portfolio diversification is the name of the real estate game, as you want to spread your wealth through multiple properties, and keep building your portfolio of revenue-generating assets to reach your long-term financial goals. Needless to say, you can’t expect to diversify effectively if you can’t find the most lucrative opportunities in the market.
This is why aspiring investors often choose to team up with a specialized property investment company that will provide valuable insights on current market trends, conduct financial analysis and assess investment feasibility, and provide strategic guidance to help them make the best cost-effective decision. Keep in mind that, as a novice investor, you don’t have to navigate the real estate world on your own, which also leads us to our next point.
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Join an investment group
There is always a way to find investors who are willing to split the investment capital as well as the risk with aspiring investors such as yourself, which presents a great opportunity for you to get your hands on the best properties on the market, and maximize your investment. Splitting the costs, as well as the profits with your strategic partners is one of the best ways to rise on the real estate ladder quickly, however, it’s important that you do your research and find the partners you know you can count on, both financially and strategically.
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Market your properties
Of course, no business venture can hope to be successful in this competitive day and age without a strong marketing strategy. Yes, this means that you have yet another investment to make, only this time it will be an investment in the most effective digital marketing tactics that will get your properties on to the online map, attract affluent buyers and tenants, and help you build your competitive advantage in the saturated market.
That said, you shouldn’t forget about offline marketing either, simply because real estate deals in physical commodities, which means that you can easily market to the local community through billboards, flyers, TV and radio ads, and more.
Real estate is a lucrative industry, and it doesn’t seem likely that its popularity and potential will wane any time in the foreseeable future. With that in mind, now’s the best time to invest in a career in real estate, and use these tips to pave the road to long-term success in the field.
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Mike Johnston is an avid freelance writer and blogger. He is a regular contributor to numerous blogs and online magazines, where he writes mostly about real estate, small business & and technology. Mike’s goal is to create insightful and compelling content that will help readers navigate through these vast and ever-changing fields.
