What are the most important things for real estate investors to know as they enter into 2015?
While the media may be underestimating just how exciting 2015 will be for active real estate investors, this year is set to be one of the most significant, pivotal years for income and wealth building. Still, real estate investing success in 2015 is all about knowledge and focusing on the right factors. So what does this mean for investors?
Building Ongoing Real Estate Education
While ‘education’ might not sound like the sexiest part of real estate, especially compared with the thrill of making big gains and developing an empire, it is critical. Expanding your real estate education can be a lot of fun, in addition to being a solid investment in and of its own. You’ve got to keep growing your foundation of knowledge. This could be taking a licensing course, picking up some new real estate books, joining a real estate coaching program, or even joining a new networking group.
Know Your Real Estate Cycles
All real estate is local, and nothing ever stays the same forever. So get to know your real estate cycles, and particularly the point of the cycle the market you are investing in is at. There is so much more awareness of housing and economic cycles today, and data that helps investors to evaluate and predict them is invaluable. Knowing this will help investors select the best markets for them, and ensure optimal performance over the long run.
Choose the Right Strategy for You
Besides the great financial and lifestyle rewards of real estate investing, one of the truly beautiful parts of it is how there is a strategy that fits everyone. In fact, some may benefit from using more than one strategy. The key to success in 2015 is to select and execute on the real estate strategy that fits you best. Does wholesaling, fixing and flipping, rentals, or turnkey best fit your current resources and skills and where you want to go? How do the available options blend with the current market and what’s coming next?
Make Your Money When You Buy
You have probably heard this concept at least a dozen times already: you make your money when you buy. It often gets thrown to the wind in the rush. However, there doesn’t need to be any unnecessary risk taking to get ahead, and investors will be best served in both the short and long term if they stick to locking in profit on the front end.
Have a Real Plan
You might not have all of the answers yet, and you might just have to make a few adjustments on the way, but it is critical to formulate a plan and have a roadmap laid out. It’s great to be aggressive and optimistic in planning, but be realistic too. There are great short term gains to be made. However, remember this isn’t a sprint, winning long term is a marathon.
Taxes
While taxes might not be the most inspiring part of financial planning and investing, they do separate the leaders from the rest. Taxes can either be a point of loss, or extra gains that most ignore. It all depends on whether you ignore them or tackle them head on. The great news is that individual investors don’t have to become tax geniuses to realize the advantages taxes offer. Consider getting a good accountant though.
You Can Make It
Step out with confidence in 2015. You are capable of achieving so much more than you may realize.
Summary
There is much to be gained in real estate in 2015. Whether it is purely financial rewards or lifestyle goals, they are both available to those that invest in real estate. If you want to make this your best year ever, hone in on building real estate education, select the right strategy for you, tackle taxes, and don’t neglect timeless principles. Keep these factors in mind and there is no reasons not to be extremely bullish in 2015.
