BECOMING A SUCCESSFUL REAL ESTATE INVESTOR, LEARN HOW.

How to be a Successful Real Estate Investor

Population explosion in some major cities of the world has made the business of real estate a very lucrative one. People have been forced to pay through the nose because they have no choice but to stay close to their businesses. Real estate business people have thus enriched themselves. while the business is one of the oldest in life, neophytes are still joining the league on a daily basis. If you fall into the category of one who has the money, but lacks enough experience how can you determine what to buy and how to go about it?

Proximity to the city

There is really nothing wrong in you buying property in the city. If you are financially limited however, try as much as possible to invest in property that is close to the city. This is owing to the fact that development does not happen overnight. Considering that Rome was not built in a day you will know that for a part of a country to become developed, it must be linked to an already developed part. While you may not expect the same return as someone who has bought a building in the heart of the city, you will sure get patronage from people who may find the city rent too expensive. Such ones may not be comfortable with the noise associated with the metro and may prefer a quiet night after the day's hustle and bustle, as long as their home is not too far from the city.

Available Infrastructures

Whether you are buying in the heart of the city or you are going to the remotest village of your country, there must be a level of infrastructure in place so that your property will not stay redundant. Its true that some governments are more responsible to their citizens by providing basic infrastructures, it is also true that some developing countries are still battling to provide basic amenities for its citizenry. If you are in the latter category, avoid putting your money on property that are in areas without electricity and good roads. While it is possible that the government decides to put these things in place in the future, you will only be tying down your capital when you invest in such places with that hope in mind. Even if the land is bought for the purpose of farming, no one will patronize a farmer when the road is not OK for motorists.

Can it Be Commercialized?

There is just one reason you have for buying a property as a real estate person;  to make profit. Whether you want to rent it out, lease it or sell it right away, it is always good to buy a property that will yield good returns. Do not buy property that have become so dilapidated that the cost of renovation will be too much. When that happens, you may not be able to sell or rent it out at a rate that is commensurate with what is obtainable in the locality, you may end up incurring loss.

Be Conscious of Governmental Regulations

There are some raw lands that have been acquired by the government for developmental purposes. Property that belonged to the government are sometimes trespassed by local residents who claim that their forefathers have been on the land before government encroached on it. These ones may go ahead to woo unwary investors, especially neophyte estate developers and goad them to invest in controversial property. It is therefore pertinent to check with the ministry of planning in the state to ensure that the property is rid of such controversies. Even if it does not belong to the government, you still need to confirm if there are more than one party to its ownership. Ask around if the land or the building is rid of any form of litigation.

Remember Nature

After ensuring of its legitimacy, it is still important to consider factors associated with nature. So when investing, ensure that the land is not prone to flood. Is the landscape such that erosion will constitute problem eventually? When a land is too hilly, too rocky or swampy, an investor may regret ever dabbling into the business. Even if it is a building, is it possible that the area is susceptible to earthquake or even volcanic eruption?

Work with Experts

The work of an estate developer is not an easy one. As a greenhorn, you can find solace from the fact that you cannot carry out the task alone. So do not be afraid to ask questions. For example, when recruiting bricklayers, avoid overpaying as there must be a yardstick for paying the locality based on the number of bricks laid at a time. Same goes for carpenters, electricians, painters, manual laborers, etc, who are sometimes paid daily wages. It is pertinent that you employ the services of one or two marketers who will help drive the sales of your property. Better to pay commission than pay salaries, it is better to place them on target as well. 

There is nothing wrong if you get anxious as a beginner, even experienced real estate developers get perturbed sometimes because of the uncertainties associated with the business. As noted earlier, Rome was not built in a day. Be assured though that no amount invested wisely in a real estate business is a waste. Land is the only form of capital that is not manufactured in the factory. When one is fortunate to have one at his or her disposal, he is truly fortunate as the property will always increase in value, even if it was bought a minute ago.