In an article posted on REIclub.com, the first thing a starter who has indicated interest in the real estate investment needs to do is to acquire as much knowledge as necessary.
It says, â€The secret is to learn from others and avoid the pain of learning the hard way. Here is the secret, you can jump-start your investing success by getting a good mentor and constantly reading and listening to successful real estate investors.
Another thing, which is equally important is to consistently make a lot of quality offers. In order to become a successful real estate investor, it is absolutely necessary to place many offers that, if accepted, will result in great deals. Without offers, there can be no good deals and good deals are the basis of success in real estate investing.
For Mr. Steve Ogbonna, a player in the real estate industry in Nigeria, it is important for a beginner to set investment goals and ensure that he follows them to the letter.
â€In order to make your investments in real estate a success, you need to know how and when you should use the help of professionals in order to meet your goals. Some of the professionals who are of value to your business include mortgage brokers, real estate agents, and real estate lawyers. Getting the help of a professional at the right time can give you insights while choosing a property to acquire and they also help you save time since you wonâ€˜t have to do your own time consuming research.â€
â€Setting these goals is preferably before one even starts investing. Anyone who drafts a realistic plan and sticks to it can achieve a whole lot. Accurate goal setting is actually very difficult, but to set realistic goals, speak with experienced investors in the chosen field- wholesaling, renovating and lease-options and get their honest opinions regarding profits per deal and the average time required to complete a deal.
â€Based on this and her current resources of cash and credit, the investor can set his long-term cash, cash flow and equity goals for one year, three years and five years. Once these long-term goals have been set, he can fill in his short-term goals of three, six and nine months by outlining the steps he needs to take to accomplish his long-term goals. This will really help the investor in making the right decisions.â€
A real estate consultant, Mr. Joseph Adeola, says that for anyone who is interested in going into real estate business, it is important that he focusses on making little profit in the beginning.
He says, â€When you purchase a property, do not feel you have to pass all of the savings on to your buyer. My advice to you is to take what you can get. Do not try to inflate your prices above the market and gouge people. Give them a good value.
â€However, do not think it is necessary to limit your profits just so a buyer can benefit. After all, this is business. Let the market set your price. There will be plenty of times when your profit is not as large as you expected. Take advantage of the big hits when they come.â€
Adeola adds that there are also many methods used for real estate investing and each one is dependent on what the investor is set to achieve.
According to him, these methods can be summarised into two: â€˜Buy to Sellâ€˜, which is geared for profit and is usually short term, and â€˜Buy to Rentâ€˜, which is beneficial for long term income, adding that leasing the property, while accumulating equity, is usually done for mid to long-term.
â€In the real estate investment industry you have to be sure to stay on top of things, and knowing what approach you want to take can help in planning for the right goals and which properties are much suitable. Aside from this, you can also make a plan based on your goals, and you can customise the methods so you can meet your goal much faster and in a more effective way,â€˜ he explains.