Real estate investments are among the most profitable investments in the market if done right. Getting it right is not easy, though, as real estate investing does not come with a manual. However, there are some things that you can do to increase your chances of success, according to Charles Wells.
Charles Wells is a real estate agent, investor and developer who remodels and builds homes. The former IT Manager with the United States Airforce and IT Consultant with the audit and consulting firm PWC left his IT job to invest in real estate and become his own boss. He successfully flipped eight homes and grew his rental portfolio to ten homes, all in 36 months. With his success and experience in real estate, he gives aspiring real estate investors tips on making it big in the industry.
Invest in property in good locations
Location is everything in real estate; it determines whether your property gets buyers or renters or if it remains unoccupied for years. A good site does not have to be in the most expensive area; it is where people are most likely to live due to good climate, access to good schools and other social amenities, and security. Such areas are likely to attract a high number of renters or buyers and should be where you invest your money.
Research the market before you invest
Thoroughly researching the market before making any investment is crucial to any real estate investor. Understand the dynamics of the area you want to invest in, such as the vacancy rates, the available amenities, and the historical value of properties in that area. Understand your target market and their needs before deciding on whether to rent out or sell the property.
Use a management company
This is important, especially if you have an investment property that is far from home. Management companies take care of details, such as ensuring all utilities are handled and that the property is well managed. This makes it easier for you, as the owner, to concentrate on other investments.
Insure your investment
Taking out an insurance policy on your real estate investment is very important to ensure that you don’t lose everything in case of any damages from natural or man-made disasters. While the tenants are responsible for insuring the contents of the house, a landlord’s insurance policy will come in handy in case of damage to the property, such as to the structure of the house and any furnishings you provided with the house.
Consider non-traditional investments
While most people invest in residential areas, from single-family homes to apartment buildings, you can opt to tap into non-traditional real estate investments such as office buildings, industrial spaces, storage unit complexes, and warehouses.
There is no one-size-fits-all strategy when it comes to investing in real estate, but following these tips from Charles Wells will make the investment journey easier for you.