Most, if not all, financial consultants will advise building a real estate portfolio. This is especially true for those new in investing. The reason is due to real estate’s inherent stability. For the most part, political and economic climates rarely affect one’s investments. That said, there are still a few things to avoid.
Define as you go: One of the worst mistakes one can make is defining or redefining plans as one goes. Real estate is not something that can be mastered on a whim. It must be thoroughly researched and managed. This means creating and sticking to a plan. Remember that real estate should be taken as an investment strategy rather than a transaction. A good tip to remember is to create a plan and then work backward.
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Think short term: Real estate is a good investment, but it takes time to grow. Those interested in a get-rich-quick scheme should change their thinking right away. Many mistakes are made because investors think too much on their return rather than what they can get down the line. Real estate still requires hard work, financial intelligence, and a steady risk tolerance.
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| Image Source: biggerpockets.com |
Think as one: It might seem like a good idea at first, but the most successful real estate investors are those who build the right team of professionals. At the minimum, this means creating a relationship with a real estate agent, a financial consultant, an appraiser, a home inspector, an attorney, and a lender. This team expands when one furthers the reach to remodeling and maintenance.
Take note that real estate investing is a lucrative and stable endeavor but one that still needs the assistance of a financial professional.
Learn more real estate investment advice from Bharti Jogia-Sattar, a respected accounting consultant who specializes in the real estate industry. Subscribe to this blog for more information.
