A guide to achieving success in real estate investment…
By: Nick Stratton- Director of New Accounts Brewer Caldwell Property Management
The second half of this article is still based upon the article by Jean Folger titled 10 Habits of Highly Effective Real Estate Investors.1To view this article please use the citation listed below.
6- Stay Educated- “One of the most powerful tools for empowering individuals and communities is making certain that any individual who wants to receive a quality education can do so.”-Christine Gregoire-2 New laws, changes to old laws are constantly happening. One can stay ahead of the curve and prepare themselves for these changes through education. Industry journals, professional conferences, and application of wisdom from industry experts will allow one to achieve their goals.
7- Understand the Risks- Investors may only look at the “best case scenario” of their portfolio rather than looking at both ends of the spectrum. If you own an investment home, or are looking to purchase an investment home to rent, consider the following examples of things that could happen.
· Tenants may be evicted
· Home needs some cosmetic repair including carpet, paint and yard maintenance.
· Air conditioning needs repair (very important during summer months)
· Home sits vacant for 2 months.
While these are important issues to consider; note that planning ahead, proper tenant screening, and working diligently with professionals can lower the possibility of these things occurring and ensure positive outcomes in the future.
8- Invest in a Reputable Accountant
The Small Business Jobs Act which outlines accounting practices owners need to be aware of is one example of changes in taxes. A reliable accountant will stay on top of laws such as this one. He/She will not only help you during tax filing season, but can counsel with you on how to make the most of tax benefits or breaks the government gives.
9- Find Help When They Need It No matter the issue, if you don’t know how to do something, find a trustworthy individual who does. You will save more time, money and energy employing this method, than doing it our on your own. My father always says, “Don’t be so busy saving a penny that you can’t make a dollar.”
10- Build a Network
A chain is only as strong as its weakest link. Buyers will agree; a detailed home inspector, diligent title agency and reliable realtors can make purchasing any home simple and stress-free. There is no need to re-invent the wheel. From the article1:
A network can provide important support and create opportunities to a new or experienced real estate investor. This group of associates can be comprised of a well-chosen mentor, business partners, clients or a non-profit organization whose interest is in real estate. A network allows investors to challenge and support one another, and can aid significantly in advancing one’s career through shared knowledge and new opportunities.
1-Folger, Jean. “10 Habits Of Highly Effective Real Estate Investors.” Investopedia.com – Your Source For Investing Education. Web. 04 Apr. 2011. <http://www.investopedia.com/articles/mortgages-real-estate/10/habits-of-effective-real-estate-investors.asp>.
2- “Christine Gregoire.” Great-Quotes.com. Gledhill Enterprises, 2011.
2 December. 2011. http://www.great-quotes.com/quote/166663