So you’ve seen it in the news, you've read it in reports and saw it on blogs, people are seriously making passive income from their investment in real estate properties and now you want to venture into it..... Great idea! But let me ask you; "have you sit down to consider what it takes to be successful in property investment?” Not everyone that put their money in property investment makes a profit. You have to put certain factors into consideration and be willing enough to take risks.
Nonetheless, the purpose of this article is not to dissuade you from making property investment rather, it is to help you understand what it takes to be a successful property investor.
If you are just like every other person, you will experience cold feet when you are about to get started, well, this is normal and expected. Getting started into real estate/property investment is always a challenge. However, with right people by your side, you can make a good decision that will result in constant passive income from your investment.
So are you ready to take that first dive? Come with me as we explore how you can get started in the world of property investment:
1. Check Your Finances
Before you consider buying properties, it is assumed that you must have checked your finances and you are financially stable to pay for the properties or obtain a loan. Don't write yourself off yet if you don't have enough cash. You can easily obtain a loan if you have a stable and reasonably good paying job with strong employment history.
You must know your budget and understand your cash flow before you start looking at potential investment properties. Bear in mind that there may be future expenditure apart from the current price of the property; it is a good idea to put these future expenses into your budget.
2. Make an In-depth Market Research
Successful investment in a property market needs adequate and thorough research. It is not something that you can do based on hearsay or guts feel. With adequate research, you can be able to gather reliable information from trusted sources which will go a long way to help you determine profitable areas and periods to invest. You will also learn the type of property that is best and most appropriate for your budget.
3. Define Your Objectives
Everybody has a reason for investing in property market; some do it to take advantage of the current surge in property prices, others do it for long term benefits. Ask yourself the reason for investing in properties and plan your investment in such a way that it will help you achieve your goals. It is important you remain realistic and set achievable targets.
4. Choose Your Target Area
Like we said above, investment in property market requires a lot of research; you will need to choose the area where you can buy property and make a profit. This will have a serious impact on the return of your investment. There are two ways you can choose your preferred location; you can either choose an area that is witnessing a surge in property prices and low vacancy rate or a location with high growth potential. We recommend that you invest in an area that you are familiar with.
5. Estimate Your Cash Flows on a Property
Before putting your money into any property, it is advisable that you sit down with a realtor or somebody with knowledge of how US property market works and calculate your cash flow on the intended property. You need to make a proper estimate of how much you are going to spend and how much you will get in return; this will determine whether it is worth investing in the property.
6. Decide on How to Choose a Property
Choosing a property is very crucial. You need to work with a trustworthy realtor or property manager who is willing to tell you the true state of the property. Ideally, you will be more successful with your investment if you invest in a property that has strong tenancy demand with features that will appeal to lots of people.
Consider properties with features such as extra bathrooms, good security, lock-up garages, and close proximity to schools, shops and public transport system. Additionally, you need to ensure that the property you want to buy has a good resale potential for the future.
7. Decide How You Want to Manage the Property
Have considered how you want to manage the property? Once you get a property, you have a choice either to manage it yourself or appoint a property management company to manage it for you. If you choose to do it by yourself, you will need to learn everything necessary for managing a property which ranges from finding a tenant, collecting rent, conducting repairs and maintenance, and dealing with the neighbors.
Buying your first property is not an easy decision. In fact, it can make or mar your investment life; you may need the services of property Investment Company when you want to do your first investment. Chances are you will be more successful if you get your first investment right. Stop postponing the decision, get started today, we can help point you to the right direction and make your property investment life much easier and profitable.