According to US-based industrialist, Andrew Carnegie, around 90% of the world's millionaires made their fortunes via real estate. Yet, for every person that strikes it rich buying, selling, and renting property, there are hundreds that lose money instead.
The secret to succeeding as a real estate investor lies in a combination of things. These include effective property management, wholesaling, and joint ventures.
There are also a few golden rules you should know before you enter this competitive arena. Here's your guide to making real estate investing a success.
Set Up a Real Estate Investing Plan
Property is one of the costliest investments you can make. As such,you should never part with your hard-earned cash on a whim.
Rather set up a solid investment plan before you even look at your first property. A property investment expert can help you set up a suitable business plan and find tune your strategy to maximize profits.
A property investment plan helps you focus on your goals, keep you organized, and manage your properties effectively. It can help you stay on top of refurbishments, estimate cash flow, and fine-tune your marketing efforts.
Find Your Niche
To succeed with real estate investing, you must have an in-depth knowledge of the market in your areas of focus. It pays to limit your investments to a geographic region, or focus only on commercial or residential properties.
Some factors to consider include changing trends in consumer spending as well as unemployment rates. Keeping your finger on the pulse of these aspects helps you better predict future developments and plan for them.
By focusing on a specific area, it's easier to keep track of these trends and ensure long-term prosperity. Never move on to a new market until you've mastered how to maximize the first one.
Other examples of niches apart from location include low income multi-family housing, high-end residential homes, or farm rentals.
Keep Learning
Like any business, property investing involves plenty of terminology, laws, and regulations. By staying up to date with these, you can avoid unpleasant hiccups in your investing strategy.
If you're uninformed about important laws like the Fair Housing Act, or ignore them, you could end up with serious legal problems.
Other factors which could impact your business include lending, tax, and real estate laws.
Work With a Property Management Company
An experienced property manager can help you with every aspect of maximizing your investment property portfolio. They can ensure you buy property in the best location, help you find your perfect niche, and set up competitive rental rates.
Working with dedicated property managers removes much of the risk involved in real estate investing. These experts can help you understand the ins and outs of the rental market and avoid potential legal pitfalls.
Are you eager to explore an easier way to take on property investing? With over 15 years experience in the field, we're well versed in the intricacies of the Charlotte, NC property market.
Get in touch for assistance no matter where you are in your property management journey.
