Top Strategy for Profitable Real Estate Investing
Are you interested in the lucrative real estate market? Have you watched the Do-It-Yourselfers on TV who purchase a home, renovate or upgrade, then resell it for a profit of more money than most people make in a year?
It sure is tempting, but what are the pitfalls? What should a new investor know BEFORE putting money into real estate?
There is one mantra that successful real estate investors live by: “buy low – sell high”. How can you apply this to your investment strategy?
DON’T GET OVERSOLD
New investors can easily get caught up in the sale. Without experience or a background in real estate you may think your instincts are good and quickly get in over your head.
Investment properties need to be undervalued and YOU need to do your research first. Don’t plan to buy without spending a lot of time comparing values. Your goal is to purchase an undervalued property which can take time and experience to spot.
The best way to determine the true value of a property is by comparing similar properties and noting the common features. The properties MUST be in the same area since location can drastically affect price range.
Take note of the features and failings of each property, how long they’re on the market and the price they sell for. Once you have a good understanding of the value of properties you will be able to tell when a property is undervalued – perhaps because a quick sale is needed or the seller is inexperienced. Don’t hesitate to barter for the best deal possible.
I trust that what you’ve read so far has been informative. The following section should go a long way toward clearing up any uncertainty that may remain.
KNOW YOUR MARKET
You’re not buying for yourself so spend time noting the trends in the market. You can often find data in the local real estate papers listing the percentage of growth for various properties in the area over the past year.
Keep an eye on what’s moving quickly through the market and what features are promoted in new constructions. You can use this information to make your upgrades as market friendly as possible.
Be careful not to make the mistake of renovating to your personal tastes. Use neutral palettes and current styles to appeal to the broadest market.
KNOW YOUR BUDGET
The more time you spend researching the costs of your venture, the higher the profits you will see. Know how much you can spend, the price of materials and labor and the time frame to have it completed. Some experts would tell you to double or triple that amount. In any case, the more research you do the more accurate your budget will be.
Don’t get swept away in the process either; concentrate on the most profitable renovations. Kitchens and bathrooms are important. Adding French doors or updated lighting can also be a good investment. A fresh coat of paint is a must.
Investing in real estate is a financial business. Plan your investment like a business; make well researched decisions, stick to a budget, don’t let personal preferences get involved, and you’re ready to make some money!
Those who only know one or two facts about real estate investing can be confused by misleading information. The best way to help those who are misled is to gently correct them with the truths you’re learning here.
Michael Hehn
http://www.articlesbase.com/non-fiction-articles/top-strategy-for-profitable-real-estate-investing-87790.html
Difference between Marketing, Finance and Strategy in MBA Program?
I was wondering if someone with MBA or BUsiness experience could give me some rudimentary differences between these three fields. What kind of jobs can you get with these fields? Which is the most profitable? What would be the best asset towards a Sales Career? How bout a real estate investing career? Any advice or opinions are appreciated
They are all areas of business, but finance is heavily quantitative and marketing and strategy are more qualitative/theory-based. Strategy is a specific area of management. Marketing would be best for sales. Real Estate would be ideal if you’re looking to go into real-estate investing…if not real estate, finance. However, an MBA is a masters degree in business administration, so when you’re looking to take your electives, the most you can do is a self-declared specialization in one of these areas…which is equivalent to stating a concentration at the undergraduate level. It won’t be on your diploma anywhere – all you can do is put it on your resume. You’ll find out if you like marketing and finance (and if you’re good at them) during your core courses of the MBA. Then you’ll have a better idea.
References :
MBA Admissions Rep.