The fact is that the first action a resolution investor should take is to dedicate themselves to education in the real estate game. Seminars, books, educational programs, and real estate blogs are offered through many channels, including the website listed below, and are absolutely needed to help transition from “Resolution Investor” to a “Real investor”.
The most obvious benefit is that someone else is paying your mortgage and building equity for you. If you buy a property that has a positive cash flow and use a good strategy to make sure your vacancy rates are very low, the income from the property will cover your mortgage payments. Over a period of time you build equity with little effort on your part as the loan pays down the principle. This is the easiest method in the world of building wealth and why owning rental property is the number one strategy of most of the worlds wealthiest investors.
Real estate offers greater profit potential, compared to other forms of investment. Not every piece of land will always turn out to be a winner. Despite the great potential in profit, some cases are high risks. So you will want to be sure to carefully research and study your real estate investments.
Property Inspections. Driving slowly past a property does not constitute a buildings inspection. Moreover, looking at a property brochure does not constitute a buildings inspection. You need to get it independently checked out to ensure things like hidden fire damage, structural problems etc are identified. You will be spending large sums of money on the property so make sure you are fully aware of what you are buying.
I would never encourage any investor to jump into such a project. To turn such an investment around requires a building with sound potential for value, really deep pockets and a very good understanding of the renovation game and construction contractors. Poor Jane thought she could do this on her own with her boyfriend, who might have good looks but has no previous construction experience. Occasionally, they would hire a tradesman to do the work they could not, but this is no plan. Everything backfired, even their own relationship was destroyed in the end, as a result of all the unmet expectations, pressure and constant arguing on what should be done. And let’s be realistic, their expectations were unreal from the outset.
If you are a new in this field, you will want to refrain from doing any speculation until you become more informed. You will need to devote a considerable amount of time to study and research your property investment prospects. It is also wise to network and consult with others who are doing things, especially specialists.
When you’re out property investing, here are some common questions a real estate agent will ask: “Hello Mr. and Mrs. Buyer, are you buying, selling or looking?” And if they say, “Oh, we’re just looking.” The agent will ask, “How many properties have you looked at so far?” The buyers may respond that they’ve looked at a couple of properties. The agent will ask if they made an offer on any of the properties they’ve looked at. If the buyers answer no, the agent will inquire why not? This line of questioning just rolls off the agent’s tongue. The buyers get bamboozled. They don’t even know that they’re being qualified. And if the agent decides the buyer is too difficult, they will put them into the “too hard basket”.
That wasn’t his sole error. In addition, he had not even bothered to make a visit to his investment property before purchasing it, so he hadn’t the faintest idea it was filled with deadbeats and criminals. He had neglected to engage a team of real estate experts who would have been quick to advise him not to invest in that neighborhood, which was also filled with criminals. It was not a good neighborhood, and he should’ve known to avoid it. In fact, he could have avoided it very easily if he had just done his research.