No doubt, real estate provides many opportunities to grow your money rapidly. But there are many factors that make for a successful real estate play. While you can’t always guarantee a home run, there are things you can do to help ensure you see a good return.
In Hirsh Mohindra’s blog, we discuss how to avoid losing money on a rental property? Review these simple tips and assess if they can help you:
Get real estate education: education is the strongest weapon to save your money in real estate. A large number of real estate transactions fail due to lack of education regarding purchasing, holding, or selling real estate.
Before investing in real estate, educate yourself. Gain knowledge from books, blogs like Hirsh Mohindra. This is a small investment which can save you greatly in the long run.
Choose the best time to invest: Timing the market is key. Watch your interested areas carefully and try to enter during a dip. Small drops can make a huge difference on the upswing.
Don’t follow the herd: Everyone always seems to be buying and holding in particular neighborhoods, but always rely on your own diligence and research.
Don’t buy in unsafe or poorly accessible areas: Location is key for many reasons. In rental markets, if you are in a safe neighborhood it will be easier to find tenants. People always want to live in safe areas. Try to find something with good highway accessibility – people need to drive to work and easy access to thoroughfares is important.
Don’t bet on appreciation: Many real estate beginners buy a property assuming it will skyrocket in value and later on they will sell it with a huge profit. Don’t gamble in the real estate market. Keep away yourself from this kind of risky investments.
Keep an ample amount of reserves: You should have some reserve money for your crucial time. In unexpected times your reserve money plays an important role to feel safe and allows you to carry the property if the rents aren’t coming in.
Analysis of the invested property: to avoid losing money in real estate, you have to study your property and the surrounding area from every angle. Check out the vacancy rates in surrounding buildings, understand who the largest employers in the area are, and find out where locals learn about new listings. Have as much information on the area as possible is always helpful.
Choose the best real estate marketing tools: Many investors ignore the importance of marketing tools and think they can manage themselves. Marketing is important, and so is time. So to save time, get help with photos, staging, and other social media outlets quickly so you can market your property without hassles.
In the real estate market, there are always risks. But you can help you reduce your risk by staying informed by following Hirsh Mohindra’s 8 tips.