Successfully investing in today’s real estate market is difficult due to intense competition. Despite the complexities, it still remains one of the most lucrative forms of investments, allowing you to secure financial stability.
If you are planning to enter the world of real estate investment, you will have to take various factors into account to not get sidetracked later on. To help you get a head start, Winston Deloney will be sharing some of his tried and tested techniques and tips for real estate investment.
Winston, How Important Is It to Have A Real Estate Strategy?
Every investment requires a well-thought-out strategy that is closely in line with your needs as an investor. Before you spend a single penny on a property, you should know where you wish to go and how you are going to do it.
For example, there are 4 key real estate categories: commercial, residential, land, and special use. Moreover, there are 3 important strategies that investors generally employ. These are value-add, opportunistic, and core strategies.
After carefully studying each strategy and weighing it against their own needs and expectations, a new real estate investor should pick one and stick to it.
Are Real Estate Investing Groups Effective?
As a new investor, it is integral to join a local networking group to gain insights and experience. You can find thousands of such REIs across the country simply with the help of the internet. Join a few of those groups that are talking about the topics that you are most interested in.
Avoid groups that are just pitching their products and join ones that will actually add value to your knowledge.
Can I Trust a Paid Advisor to Help with My Investment Portfolio?
In a lot of cases, your trusted advisor (accountant, broker, etc.) may advise you against real estate investment due to the same old reasons that it is too risky or complicated. Though those arguments are not completely untrue, your advisor might focus more on their benefit rather than yours.
For instance, your stockbroker will not make any money if you invest in real estate. So make sure you are not blindly listening to any expert advice and instead of doing your own research.
Are Real Estate Investment Experts Worth Consulting?
You can take the opinions of professionals who specialize in guiding both new and old real estate investors. Doing so will enable you to gain expert insights, which you can then use to avoid different investing mistakes.
Following the guidance of a professional will also make your portfolio more profitable in the long run. Seeking the advice of experts when I was just starting my journey has helped me overcome challenges as a real estate investor.
What If My Strategy Doesn’t Work Out?
As a new investor, there is a good chance that your real estate investment might not be as successful as you had hoped. For this reason, it is very important to have different exit strategies.
In flipping, for instance, you should always buy a property that can yield you high rent, thereby eliminating risk in case your property sale tanks. Having more than one withdrawal strategy will ensure that you do not lose all your money.