Advice for Real Estate Investors
Real estate is big money. Many fortunes have been literally and figuratively built on land. Handled properly, it’s a consistent source of income, one that can carry you through your golden years. Land tends to do well even when markets around it are slow. The problem you face is knowing enough to make the right decisions.
Take Stock of Your Options
The first time you go looking for land to buy, it’s exciting. The world is full of potential and all you need to do is find a good plot that best suits you. Unfortunately, looking for the right plot is more difficult than it sounds. Impatience can take over and prompt you to buy the next plot you see just so you can get started. Don’t let that happen. There are a couple of things you should remember when judging land. For one thing, don’t judge it as someone who’ll live there. Your personal preferences don’t matter. Look around. Base your purchase on what you’re planning to do with it.
Figure Out What You Want
Saying that you want to make money from land is reductionist. You need to flesh out your reasons. Knowing how much you want to make, how you want to make it, and in what amount of time, for example, will determine what kind of land you’ll purchase. If you don’t know how to set financial goals, it’s time to speak to a financial advisor.
Buy Properties Whose Sellers are Motivated
When buying real estate, you’re looking to find motivated sellers. Motivated sellers want to sell their land instead of just lazily putting it up for sale. You’re more likely to get a price suited to your financial goals as they’re more willing to negotiate, while others will stand firm on their price. Non-motivated sellers aren’t necessarily lazy, but they don’t have to work at your pace. Figuring out if someone is motivated is simple – check the asking price’s history. Generally speaking, the asking price should change according to the market or time spent on the market. If it’s been getting cheaper as time goes by, you’re looking at someone who wants to offload their land. If it hasn’t, you should look elsewhere. There are plenty of ways to find motivated sellers. Open houses and vacant properties are great places to start. You can also advertise your need on various forums and let them come to you. You could even check out the classified ads.
Study Your Finances
A successful financial move requires preparation and knowledge. You need to know what you’re working towards and what you have to work with. These two things will inform your real estate price point, which will help determine when negotiations are going well and when you should walk away. Generally speaking, you’ll want to know how much you’re making, how much money you want to make on the investment, and so forth. Once you have a clear idea of these figures you should be ready to move forward.
Financial analysis goes both ways. Looking at yourself is good, but you should also examine any and all information sellers give you. Some sellers will use estimated data in an effort to overvalue their plots. Verify their information. Look at their property-tax bills, as well as their maintenance records and financials.
Learn and Apply
Real estate investment is both an art and a science. There are some things you should go with your gut on, such as choosing between two seemingly equal plots. On the other hand, there are a number of things that definitely deserve your attention and study, from learning the trade to the laws involved in buying property. The problem many would-be real estate investors face is getting stuck on learning. Learning is great. Learning gives you the tools required to succeed. Don’t be satisfied with just knowing things. Go into seminars and classes with intent. List down questions you want answered and what you want to achieve. Real estate investments promise a lot of money, but that money isn’t instantaneous. In fact, no path to wealth is instant. Like starting a business, investing in land will take time to make money. If you have time to wait, don’t hesitate. Analyze your finances, brush up on your studies, and look for some prime real estate.