“Persist—Do not take no for an answer. If you are happy to sit at your desk and not take any risk, you will be sitting at your desk for the next twenty years.” –David Rubenstein
Much like any other career or business in the world, real estate investment takes time, commitment and a little discipline to get good at. It does not only take a fortnight to be successful in your real estate endeavors—for some, but it can also even take years and years of trying, failing, learning and getting back at it again.
The trick here is never to give up and keep persisting. After all, every failure is a valuable lesson. Unfortunately, most novices and budding real estate investors would give up at the first brush of failure because they were under the misguided impression that a career in real estate would mean easy money. This could not be any farther from the reality of how things are. The truth is you will try, and you will fail, but this should not deter you. Study and learn as much as you can about the process and refine your techniques. Reevaluate your strategies and try to pinpoint where you have fallen short before. However, if you wish to mitigate the possibility of committing failures, here are some of the tried and tested ways to do exactly that. Whether you are planning to invest on properties in Avida Towers Centera, there are common strategies (proven by those who had already made a fortune in the industry) that would help you succeed with fewer mistakes.
When investing in real estate, here are the principles and concepts you should consider:
1.) Have an analysis spreadsheet that contains your prospective rental properties
A wise investor would not immediately close down on the first best deal he comes across. Instead, he would take note of that, find more deals, collate them and analyze them in a single spreadsheet. Commence your analysis with the Fair Market Value, money down the improvements done, the rental income, expenses and its prospective ROI figure. Weigh your options by subjecting every possible deal through your spreadsheet. This is crucial because it helps you pick out not only the best properties but the best deals as well.
2.) You are buying numbers
Do not make the mistake of envisioning yourself living in the property you are buying. Take note: You are not buying a home to live in; you are investing to buy yourself numbers. Getting far too attached to the property you are investing on can be a fatal mistake as it clouds your judgment. When you are emotionally involved, you will invest far too much time or capital than necessary which could be detrimental to your ROI. This is neither about what you want nor what you need. It is about how much you can make off the property. Remember, channeling most of your financial resources into one property so that you can bloat the rental rate is not always a feasible option. It might even backfire on you.
3.) Do your research
If you are going to be spending a significant amount on an investment property, research is not only recommended but paramount. Do your research and do it again. As stated above, do not buy the first property you see outright. Take your time and look for more properties. Weigh your options and enumerate the reasons that make a certain property great. Run it through your analysis spreadsheet and let the numbers speak for themselves.
4.) Buy local if possible
The operative word here is if possible. This means to buy local only if you can—not buying ONLY local. Do not get too focused on buying local just so you can check on the property. Quality rental properties are still superior to local ones that do not quite make the cut after all. However, if you are already lucky enough to be living in an area with a thriving rental market with proven returns on investment, then buying local should be your initial focus.