The real estate industry is one that provide investment opportunity for everyone; being that it provides investors with safe investments, high Returns, and variety of uses. New investors that desires to benefit from this investment industry and don’t know how to start can take the following points to consider before investing to buy a property; being it a land or a house, for residential or commercial purposes.
1. YOUR FINANCIAL STATUS
Before you start investing in a property for the first time, consider your financial status to see if you are able to live comfortably after making a real estate investment. You might want to consider paying off your debt, having a source of income to take care of your monthly expenses and emergencies. And of course, have a larger sum of initial deposit on your proposed property so that the monthly installment payments will not affect other needs in your budget.
2. GET KNOWLEDGE
Get yourself acquainted with information about property laws regarding land ownership, land use and tenancy ( if you decide to become a landlord). Get to know about the basics of real estate investing. Follow successful investors online and buy their books where they share first-hand knowledge about their experience in investing.
3. START SMALL TO GAIN EXPERIENCE
I know it might be tempting to invest all of that lump sum you just received into real estate because you heard it is safe and has high Returns without working for it. Please start with small investment and offers to enable you gain experience and understand the reality of the process involved in acquiring a property. Overtime, you can scale up to larger investments. This way your money and Resources don’t get tied down.
4. KNOW YOUR INVESTMENT GOAL
Before you go into real estate investing, know the kind of money you are expecting back from the investment. Is it capital gain ( one-time profit when you resell) ? or cash flow (cashback through rent annually). For cash flow, be sure to know your annual rent exceeds the annual installment payment for your house; that way your tenants pay for your investment and you are in profit already before you complete payment for the house.
5. LOCATION OF INVESTMENT
As a first-time real estate investor, you might want to invest in the location of your residents for proper monitoring and management. You can become acquainted to local agents (real estate agents in your neighborhood) to keep you informed of the good deals in your area and give you updates on real estate trends too. After much experience you can invest in distance viable locations and employ the services of a property manager to oversee the affairs of your property.
6. HAVE THE MINDSET OF A BUSINESS OWNER.
Though the real estate industry is for everyone, you have to treat it with a business mindset. Be profit-oriented, do not buy because the property attracts or look appealing to you. You need to have a solid business plan, actionable strategy, and critical milestone to achieve the best for your investment projects.
7. HAVE A MENTOR
It is important to get a mentor as a first-time property investor. This will help you have a clear understanding of the industry and ensure you have a great start instead of figuring things out on your own (which takes time, effort, and material resources). So consider getting solid advice from someone capable and strong enough in the field. You can have an online mentor or a Live mentor. Ensure you study him or her and be sure he or she is succeeding in the industry and is also willing to mentor you.
8. DEVELOP SYSTEMS
For cash flow investment in Nigeria, sourcing good tenants and property management can be a hassle. It will be wise to employ the services of a good property management firm which will be responsible for tenants management (sourcing, screening and managing) where you cannot post the time to creating the systems for yourself.
Investing in properties can be daunting. however you can find ease and comfort while investing by being informed of available opportunities and ways to get the best deals. Syntia real estate consultancy will ensure you start the right way.
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