According to Robert Tweed, a known real estate investor and CEO of TFS Properties, there are several steps you can take in order to succeed in becoming a real estate investor. In this post, we will be discussing 7 strategies and how you can apply them before starting to invest in real estate.
How to Become Financially Stable by Being a Real Estate Investor
1. Find profitable locations
A profitable location is a land or property located in a prime area. This means that if you put yourself in the shoes of your buyer, this can be a good place to live in, start a business, or rent out a place for a purpose. If you are looking into investing in commercial properties, do you research about the location’s foot traffic, accessibility and possible market profile? If you are investing in housing, what are the places nearby your property? Are there hospitals, schools, groceries and other shops needed by your renters? These are the things you need to consider before buying a real estate property.
2. Seek professional help
As a beginner, you might want to seek professional help. Robert Tweed says, “Getting a consultation with real estate experts takes out all the guesswork in your business. This means more profitability for you and more time to handle all the important decisions you need to make in your investments,”. Companies like TFS Properties help investors find prime locations and other pre-selling opportunities that can provide a large amount of profit for their clients.
3. List your properties in big databases
Once you are done with investing in your real estate assets, marketing is the next step. Make sure to list your properties in known databases such as Zillow, Realtor.com, and Trulia. For small-scale rentals, you can list your properties in Airbnb. These databases get a lot of online traffic. Make sure to post good quality and detailed pictures of your properties from the outside and inside, provide specifications and prices. Properties in these databases are more likely to get leased or bought.
4. Expand your online presence
Expanding your online presence is also important. As a real estate investor, you can create your own website showcasing your various property and land investments. You can hire a web designer to create a professional-looking website to draw more potential clients in. Create social media accounts such as Facebook pages, Twitter and LinkedIn. These are places where people are looking for business and housing opportunities. You can reach out to clients without the need to look depend on referrals.
5. Treat your assets as they deserve
Another important aspect of being a successful real estate investor is by taking care of your investments. Robert Tweed mentions, “Unlike a traditional company, your real estate properties are like your ’employees’. They’re the ones working for you, making you money, and giving your company value in the long run. It is essential to take care of your properties by giving due maintenance and renovation if needed.” Your real estate investments need to have regular cleaning, utility checks and other maintenance concerns to give satisfaction to your clients.
6. Organize your bills and taxes
Real estate investors are not spared from taxes, let alone property taxes. For owners of condominiums and apartments, you may be the one in charge of paying utility bills such as water and electricity in aggregate. Make sure that all these payments are organized, secure, and accurate to prevent losses in your profits. If you own a large scale real estate property, it would be helpful to have an accountant to take care of all your tax requirements.
7. Use profits to expand your business
This is the secret in where the money lies in real estate. Compared to slaving away to a 9-5 job, real estate is a scalable business. However, it takes persistence, wise investments and a marketing strategy to make things profitable in the long run. When starting small, make sure that you save some of your profit margins to put money back in the business for future investments. The money you earn from renting out a single unit can be used to buy another property. The money you used to convert and sell a house can help you find bigger real estate investments you can profit in.
Financial stability is definitely attainable for a real estate investor, as long as the right steps are done. Owning a piece of land is something that never goes out of value, and that is what makes real estate a long-standing investment that can earn you a fortune.