The simplicity of real estate is genuinely appealing. Everyone needs a house and everyone is willing to pay handsomely for it. There’s also easy access to leverage in the form of mortgages. So, you could start off with a decent sum, leverage it a bit, buy some great properties in fantastic locations, fix them up, and rent them out. Over time, your rents will be reinvested and your property value will increase substantially. Congratulations, you’re a real estate mogul.
But how easy is it, really? No one ever questions the chances of the average investor to strike it big and turn a property portfolio into a multi-million dollar enterprise. If your ambitions go beyond just saving enough for retirement, here’s what you need to know:
The First Purchase
You’ll find out soon just how important it is to get the first property right. This initial phase will determine how much you can eventually grow the business. If you start off with the right location and the right price, you may be able to cash in pretty soon. Of course, you can flip houses initially and just keep building a business on that strategy. Or you could buy up prime real estate and use the rental income to buy even more properties.
The Next Purchases
As with every business, making a real estate venture grow depends on your rate of return. If you’ve managed to get a substantial return on investment in the first few properties, save up the cash and buy multiple properties. This will allow you to expand the empire and apply the power of compounding.
Create a Network
Most real estate insiders will never mention just how important it is to create a network. You need to know people at every stage of the deal. From buying to selling, the venture will need a lot of outside help. Get in touch with competent contractors to help you repair the house you buy. Sell quickly to Quick Move Now property buyers. Have an agent in charge of maintenance and tenant hunting. A business needs a network of professionals to succeed, so do not underestimate the importance of getting these professionals on board your venture.
Starting a successful real estate business doesn’t necessarily mean you buy and sell property. There’s enough of room in the industry for other services. You could, for example, offer a solar energy consultancy that helps people figure out their energy needs. You could trade in mortgage or equity real estate trusts that offer a simple way to invest in the sector. Real estate investment trusts are the best way to get some exposure to the market. You could also get involved with crowdfunding real estate or lending out mortgages through p2p platforms for higher returns.
There’s no guarantee a real estate venture will work, but if you’re willing to do the research, make the effort, effort and take the risk, there’s no reason why you cannot start a successful real estate business.
Article Submitted By Community Writer