Most people learn about the importance of real estate investment from their family, friends, and mentors. But for those who want to enter today’s competitive housing market without any experience or guidance, there are a few skills that will make all the difference. In this article, Linda Hewlett will outline the most important skills that professionals in the industry have identified as essential for success—and teach you how to master them quickly and effectively.
Location, Location, Location
The saying “location, location, location” is perhaps the most important rule to remember regarding real estate investment. Finding a property in a desirable neighborhood like Boston, MA will always be more profitable than investing in an undesirable one. For example, homes in certain areas will attract more buyers than others.
The best neighborhoods, says Linda Hewlett, are often located near local amenities such as schools or parks and access to public transport. Keep your eyes peeled for neighborhoods that are growing or on the rise, as these are likely to offer the highest return on investment (ROI) in the long run.
Timing is Everything
In addition to a solid location, timing is another factor that should influence your decision. Of course, it’s impossible to know exactly when the real estate market will take an upward turn—but this doesn’t mean you have to sit idly by and wait for luck to strike.
As a general rule, some areas will be more profitable than others at certain times of the year. For example, properties near universities and colleges are more desirable during the school year. If you can identify these areas and time your investment accordingly, you’re likely to make a greater return on your money.
The key here is being prepared: if you can afford it, invest in additional training through courses or seminars on how best to time the housing market.
Have Realistic Expectations
People often make mistakes with their investment properties because they expect too much from them too early on in the process. For instance, don’t try renting out a property immediately after purchasing it unless you want no guests at all!
Real estate investment is a long-term game. It’s important to remember that you won’t make money overnight—in fact, it may take a few years for you to see any significant return on your investment. Patience is key!
Instead of viewing these homes as short-term investments, take the time to get involved in your local community and make connections with your neighbors before trying anything else. When you’re ready for tenants, you can expect a much better response from them if they know who will be living next door.
Be Prepared to Negotiate
Negotiation is an art—and it’s one that many people fail at when attempting real estate investment because of their unwillingness or inability to negotiate effectively. To increase your chances of success here, consider finding someone to practice negotiating skills!
To get the best deal possible, you need to read your potential buyer or tenant correctly, says Linda Hewlett. Gauge their interest in the property, and then make a reasonable counteroffer but still profitable for you. Remember: the key to negotiation is always compromised!
This doesn’t necessarily mean asking family members or friends; instead, look into hiring a professional negotiator (like those found through this site) when necessary so that parties walk away feeling satisfied with the deal.
Get Your Hands Dirty
One of the best ways to learn about real estate investing is by getting your hands dirty! This means attending open houses, meeting with brokers, and touring properties.
The more you know about the market, the better equipped you’ll make sound investment decisions. It also helps to know what you want in a property before you even begin your search.
One way to get started is by checking out online listings and narrowing down your list of potential properties. If you’re serious about making a profit in this industry, there’s no way to escape the hard work involved—so be prepared to roll up your sleeves and get started, says Linda Hewlett.
Do Your Research
Finally, one of the most important skills for any real estate investor is research. This involves everything from analyzing neighborhoods and demographics to studying financial reports on potential investments.
Once you’ve done your research, it becomes easier to make more educated decisions with your money. It also helps determine if the property is a good investment in the first place.
The more informed you are about an area or property, the better equipped you will be to make sound decisions that could lead to big profits down the road.
The most important real estate investment skills aren’t being taught in school. The six points above are the only skills you need to know when investing in property, but they are not always easy to learn on your own or from a book.
That is why it is important to invest in additional training through courses or seminars on how best to time the housing market, have realistic expectations, be prepared to negotiate, get your hands dirty, and do your research. With a little bit of extra education under your belt, you will be well on your way to becoming a successful real estate investor!