Sophisticated Real Estate Investors may know some success secrets that you do not. How can you know what they know and grow your business and your wealth to new levels? In this video, Edna Keep shares what she knows as a successful Real Estate Investor – and what you should know, too!
When you are looking at buying property in an area, here are some things to consider for greater success in Real Estate Investing:
- Does the average worker have increased disposable income? This is a big deal because it allows them to spend more on housing.
- How is job growth and immigration in the area? If there is lot happening, a lot going on in that city or area that you are looking at investing in, you’ll get more value for your house.
- What is the political climate? This is very important. A political climate that supports business growth is vital, because the businesses offer the jobs and allow the community to grow.
- Look for infrastructure expansion. If you see transportation hubs or rails going in (subways, etc.) and you can buy within 800 meters of something like that, there’s probably a good chance that you could experience increased value on your property.
- Choose areas that are open for renewal. Say that you’ve got a neighborhood that maybe not been perfect in the past, but you drive buy and all of a sudden you see a lot of fixed up houses in the area and yards are starting to look better. This is a positive sign that means people are living there who can possibly push out some of the riffraff by increasing the values of their properties.
- Another important item to note is what mortgage interest rates are doing. If mortgage interest rates are low and continue to stay low (or are projected to continue to stay low) that really makes a difference in your bottom line. If your interest rates get high, then you’ve got to look at ways of maximizing your rent. Higher mortgage rates of a quarter point, a half a point, generally won’t make a huge difference.
- Buying wholesale and selling retail. This includes opportunities that may come your way from a death, downsizing, or divorce. Sometimes a property will be sold at a lower value so that a party can get out from under the disaster or debt they are going through. If people are unable to sell their property, because it doesn’t look nice, you can then go in and fix it up, creating a win-win situation.
- Do whatever it takes to stand out. Stand out when you are marketing your property. Use stagers. It can make a difference between selling your property quickly and having it sit on the market for a long time. Staging your property can be the tool for getting the value of your property.
- Renovations and Sweat Equity. If you can, put a basement suite in the property. Find something that has a bathroom up and a bathroom down – and even another bedroom. Of course, you’ll have to go the city and get all of your rules and regulations covered, but a basement suite can really increase the value of your property.
Do you have any ‘secrets’ that have helped you to grow your Real Estate Investing? Leave a comment below and share your ideas and successes! I’d love to hear them.
If you’re ready to learn more about investing in properties, but still aren’t sure if it’s for you, get the FREE chapter of my book, Everything You Need to Know About Real Estate Rentals!