People always tell you to get invested in bricks and mortar if you are looking at making some money and that is exactly what my buddy Ali Ata did some years ago, an investment which he has since tuned into a fortune. Ali was kind enough to help me out with this post which is for anyone who has a real desire to get involved in real estate investment. We aren’t going to give you in-depth knowledge about this industry, just the things that you need to understand before you take the plunge. If this is something which you have been thinking about doing, then here are some tips to help you get started.
The importance of research cannot be overestimated and in truth you should be looking at spending at least 6 months studying the real estate market, the impacts which can change it, the types of properties which are the most profitable and all other aspects of this industry. Investing in real estate is not as simple as just buying a property and then selling it, these investments are large and that is why you must have invested the right amount of time into studying it.
There are a number of approaches which you can take to real estate investment and you need t spend some time working out which one fits best with what your are trying to achieve. For example some people like to flip properties, this usually involves getting cheap properties via an auction, and usually include properties which need a little bit of love. These flippers will pick up the property cheap, invest some cash to get it ship-shape and then flip it quickly for a small profit.
Alternatively you could look at buying property which you will then rent out, in doing this you can have an asset which has cash flow coming in each month, and if the market looks good then you could look to sell the property at any point. In doing this you are making a more long-term investment which will tie your money up for longer periods of time. The key to which approach you will take when investing comes down to what it is that you are looking for, are you looking for a quick return? Slow dividends? Or a long term approach which will be more of a nest egg?
Finally you need to ensure that you are cash rich in order to get involved in real estate investment. It isn’t just the price of the property which will cost money but also the surveyors, solicitors and even construction work which you may wish to carry out. The longer that you can save up the better as cash really is powerful in this industry. This is not to say that you shouldn’t borrow, but if you can avoid it then it will be far more beneficial.