Whether you are a seasoned Real Estate investor or just beginning to explore the idea of investing, the world of real estate investment is filled with many twists and turns. Learning the ropes of real estate investment starts when you take the time needed to educate yourself on the world of real estate. From learning how to clearly articulate your goals, to surrounding yourself with a brilliant real estate team, we have gathered together a few helpful tips that will steer you on the path towards real estate investment success.
Four Tips to Help You Invest Like an Appraiser
Tip #1 Write your ideas down
Appraisers are known within the real Estate world as detailed oriented individuals whom are great at creating thorough reports. With this in mind, it is shouldn’t be a surprise that our first tip to investing like an appraiser is to “put pen to paper.” Before you even think about buying, renting, or selling a home, you need to get your thoughts in order. Write down your real estate goals and be as specific as possible. Once you have put your ideas on paper, you will be able to more easily see the strengths and potential weaknesses to your investment strategy.
Tip #2 Conduct a careful study of the national and local real estate market
As with any investment strategy, research is one of the ultimate keys to success. Make sure that you identify where you plan to invest. Ask yourself the following types of questions:
• Has the market been steady over the past five years?
• Are there surrounding circumstances that are going to strengthen or weaken the market?
• What makes the area great (schools, crime rate, employment rate, average annual income, parks, transportation, access to shopping, etc.)?
• Will the national real estate industry impact your chosen investment area; if so, how?
Tip #3 Make sure that you have a viable exit strategy
Any seasoned real estate investor will tell you that it is incredibly important to have a good exit strategy before you purchase a new investment property. Before you write the check or transfer the money, you need to ensure that you know what you are going to do with the property. Are you planning on keeping it for a long period of time, or quickly selling it? Keep in mind that you also need to have an exit strategy in case things don’t go according to plan. For example, the market might take a turn for the worse or drastically improve, which could cause you to sell ahead of time. No matter what life may bring, an exit strategy is a must-have for any real estate Investment.
Tip #4 Surround yourself with a brilliant real estate team
Successfully investing in real estate is not a one person job. In fact, the most successful real estate investors often have a team of brilliant individuals surrounding them at all times. With this in mind, your team should have the following individuals:
• An appraiser to help you determine the value of the investment properties.
• An agent to make sure that the proper documentation is filled out during all stages of the real estate transaction and to assist with future re-sale marketing efforts.
• An attorney to help protect your interests throughout all stages of your real estate investment journey.
The Bottom Line: Investing like an Appraiser can Lead to Real Estate Success
Throughout your journey it is important to remember that what worked once, might not work again. In other words, every real estate transaction is a new journey that will have its own unique story. However, with these tips in mind and a great team by your side you will be on your way towards becoming a successful real estate investor!