Whether you’re flipping houses or just waiting on the market to improve, there are a few things that every real estate investor should know. You can make your experience painless and profitable as long as you follow these tips.
1) Know your area inside and out. The most successful real estate deals are the ones where you buy cheap and sell high. In order to do that, you either have to be a pro at rehabbing properties or you need to know your area well enough to tell where the future hotspots will be. In order to do that, you need to be familiar enough with your locale to see available real estate for its potential and knowledgeable enough about local housing trends to decide whether that potential can ever be realized.
2) Know how to negotiate. Buying a house is one thing, but turning a real estate investment into profit is something else entirely. A good real estate investor has to have a working knowledge of the market and has to know how to haggle over prices. Nothing in the world of real estate ever sells at sticker price, so it’s important to learn how to handle buyers who want to short-change you and sellers who want to fleece you.
3) Know how to network. No real estate investor is an island. In order to turn your hobby into a lifelong source of income, you need to be able to make connections with other sellers and buyers – it’s as simple as that. You can never have enough connections, especially when you’re trying to find a buyer or need a favor done. The best way to network is to be a people person. If you’re friendly and accommodating and willing to do favors for your contacts, they’ll treat you the same in return.
The key to successful real estate investing is dynamism. You aren’t just your own accountant – you’re your own PR department and your own consultant as well. It’s not as hard as you think to play all these roles. As long as you know your market, make connections and always negotiate for a good deal, you’ll be ready for a lifetime of success.
