This is neither a blog on the most profitable investment strategy nor a “secret to making top dollar ROI” approach. Instead, this article covers the important factors you must consider if you want to push your real estate career up the professional tread board. And peradventure you are new to real estate investing, this is indeed your lucky day, and a great opportunity to start off with the right information at your fingertips.
The first thing you need to consider is the market. Following the crowd or getting your buying advice from the media won’t do you any good. Besides the obvious fact that you need to carry out your own research, timing the market properly will bring you more returns in the shortest possible period. In the simplest form, they are called the buyer’s market and the seller’s market.
Pros know that real estate investing has nothing to do with how you feel about the property. Numbers rule! So, what do the numbers say about this type of property? How many similar properties have sold this month? What is the median rent price with respect to the household income in this part of town? Etc. You’ll be spending a lot of money, and it is best you spend it right. The general purpose is to sell, and it doesn’t matter what your strategy is, if you aren’t making money from real estate, it is not an investment but a chore. Therefore, you must watch out for property with negative cash flow, and never go into a deal without the help of other professionals, for example, an attorney, an experienced Realtor, or a certified real estate company.