Real estate investment has undoubtedly made many Americans rich but it comes with its fair share of risks.
If you’re new to the world of property management, construction development or real estate investment, then here are some tips to get you started.
#1: Real Estate Investment is a Business
Think of real estate as a business, especially when you’re buying a rental property or acquiring a piece of land. This is different from purchasing a property for yourself. You’re not supposed to build your home here, someone else is. Think your choice through in terms of its marketing value and the prospect of generating income from the investment.
#2: Successful Real Estate Investors Can Crunch Numbers
Decisions in the real estate world are based on statistics and figures. As an inexperienced investor, you may not be well-versed with investment property analytics; however, that’s a weakness that buyers may be willing to exploit. Make sure you understand all the important numbers before making a transaction.
#3: Experience is King
No one’s born a masterful real estate investor. Everybody starts somewhere. It helps to have studied the field, but there’s so much for you to learn as you head out into the real world. As a proud woman-owned business, we’ve got to say, your personal experience is going to be a deciding factor in how successful you are in the business.
#4: Location, Location, Location
You won’t hear the word “location” anywhere more than in the real estate business. Location is paramount when it comes to buying a property. You can own a mediocre rental property in a highly sought-after location and you’ll be likely to profit from it. However, if you own a stellar rental property but it’s in the middle of nowhere, you’re not going to get many offers for it. So, always prioritize the location; you can renovate a property but you can’t change its location!
#5: Tenants Can Be a Bane or Boon
There’s no middle ground when it comes to tenants; either you’re best friends with them or you simply can’t get along. As an investor, you’d want to pick your tenants carefully since they’re the ones who’ll be providing you with your monthly income.
You can get in touch with KH Consultants for tenant relations management.
Our Brooklyn-based office can also help you with construction management and property development services. Contact our team by calling us at (347) 987-4063.