Property Investment Advice That Makes Sense
Property investment can be a great thing. It can also be a disaster. Proper preparation before purchasing a property will make or break an investment. In this article we are going to share some of our best property investment advice.
The decision to invest in property is not something that should be taken lightly. Most investors, flippers excluded, will hold an investment property for at least seven years. Therefore, it’s essential that an investor gets some property investment advice from a seasoned investor.
The first thing to evaluate before deciding making a property investment is your financial strength. Investment involves a certain level of risks. Over-leveraging ones financial situation is a great way to end up broke. Not all investments will end up doing as well as the investor had initially hopped. Smart leverage strategies will ensure that subpar investments don’t have a detrimental impact on your portfolio. Not following this property investment advice is the number one reason why investors lose everything.
Market analysis is the next logical step. If an investor doesn’t know the market well, they are unlikely to make the best investment decisions. Property investment is a big commitment. Don’t make any decisions without knowing the market. Look at all of the market research you can find. It’s okay to talk to several agents to see what their opinions are. This will enable an investor to get a better perspective on the market.
The next thing to evaluate is the location of the property. At the end of the day, location is the most important part of the property. A mediocre building in a great location still has a ton of value. It also has a lot of potential upside for renovation or redevelopment. Contrarily, the nicest building in the city will end up being a bad property investment if it is in a poor location. Here’s our property investment advice, know the area well before investing!
The next step is to evaluate the structure of the building. Depending on an investors experience level, some will be more comfortable handling repairs than others. If a property is outside your comfort level, move on. There will be plenty of other properties available. If the deal is just too good to pass up, partner up with someone. A good partnership will enable you to take on more deals. It also allows investors to play to their strengths and focus on the areas where they excel. Some of the best property investment advice I have ever received is to let people help you when you need help.
The final piece of property investment advice is to know what you’re willing to pay. It seems like a straight forward concept. But a lot of investors, especially new ones, get caught up in the moment and pay more than they should have. If you followed all of the property investment advice above, you should feel confident in your analysis of the property. Like I mentioned earlier, don’t be afraid to consult a real estate agent or partner up with someone more experienced.
If everything lines up right, you will be successful in completing the property investment. If something doesn’t add up or doesn’t make sense, trust your gut instinct. It’s much easier to place offers on a different property than it is to get rid of a poor investment. Now, make a check list of our property investment advice and get started looking for that next property!