The topic of real estate investing is a massive one, but there are a few fundamental principles that apply no matter where or what you’re buying. If you want to be a successful owner of income property, consider these three tips to help you make the most out of your investments.
Every market is different. In fact, every city or borough is different. The best real estate investors get to know one area exceptionally well, to the point where they can tell at a gut level when there’s a good deal to be had. You simply won’t know what’s underpriced unless you know how the properties are usually priced.
One of the best guiding philosophies for rental property success is trading your time for money. Every activity you outsource costs a premium and takes control out of your hands: funding, locating prospective properties, crunching the numbers, making repairs, showing the space, marketing, and many more. The time you spend will usually be more than compensated for by taking out so many middle men — as long as you do your homework and learn how to get each task done right.
Your rental properties can be automated money-generating machines, or they can be nightmare horror stories. While the quality of the property itself has something to do with that, the biggest factor is who you put in there. If you want to avoid an office building with an astronomical electric bill, a motorcycle parked in the entrance “showroom” that’s leaking engine oil, or legal trouble because of illicit activities on the premises, vet your tenants carefully. That means a background check and credit check, every time. It means calling references. And it means popping in occasionally to see how the property looks. While there are plenty of other tidbits of wisdom in the real estate investing game, these three are essential practices as you venture into the investing world. Take heed and you’ll get the payoff you’ve been working toward.
Michael Staskiewicz, CCIM, Managing Principal of Effective Realty Advisors and a team of strategic partners, help financial decision makers of mid-size companies perfectly align their real estate with their business needs, so that they increase profits and improve operational and financial performance.
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