In Real Estate precinct, every person dreams & strives to become a successful investor. Investment is a one risky task. Going from zero to hero is a tough journey. It always has its own ups-and-downs. If you are new to this business you will definitely need proper guidance. Otherwise, you would have to face immense loss in this regard.
Never jump in to the bandwagon of investment in real estate without proper guidance. Today, we have sum up some basic rules of thumb to ensure you are heading in the direction of becoming a Successful Investor. Instead of going through big bulky books, follow these rules only.
Read More: Why you regret your Real Estate investment decision?
Following are main rules to follow in order to become successful investor.
- Educate Yourself of where you would like to invest
- Set Your Investment Goals
- Think in a broader Aspect
- Develop Foresightedness
- Be your own boss
Without good knowledge, even the best advice cannot keep you from a huge disaster or great loss. Supplemental information along with hands on experience further increases your chances to gain profit. Knowledge is the ultimate currency. Forecast the future & understand whether the location posses the gains you are opting for. Ideally get experienced professionals in Real Estates advice & alternatively do your own working to get an unbiased opinion about the project you are investing in.
It will not only makes you a great investor but also enable you to assess lucrative investment opportunities. People have a tendency of following where others are investing or joining the bandwagon as they see it lucrative never do that, make sure to do your working, study, forecast & finally see if they are in line with your goals.
Set Your Investment Goals
You should not mix-up goals with your wishes. So setting clear-cut yet reachable & realistic goals should be priority if you want to be successful investor. It may include to speculate:
- Location of these properties
- Whether your moving in the buyers or sellers market
- Understanding market trends
- The timing to buy & whom your buying from
- The graph of profit & loss should be studied of a particular society before purchasing
- Prior Research using different listing based websites to get a rough idea of prices
- Number of property assets you want to buy in a specific time
- Category of these properties
The most necessary thing is to set your goals. It should be necessarily present on your road map to become financially well. Avoid getting greedy if your speculation is to make a 1 million profit on a 10 million investment & the offer in hand is 0.9 million it is wiser to accept the current offer as it is close to your initial goal setting. Rather than waiting as the price may drop & your offer may no longer be valid.
Think In Broader Aspect
Never ever go for short–term profits. Always keep long-term gains in your mind. In a rush, you probably lose the opportunity to get double digit gain in market. Veteran & successful investors always invest in prudent options where the value is quite logical from the very start. Thus, you need to get out of the small puddle in order to swim in ocean.
Risk Management is also important. Avoid short term sixers so to speak as they do sound attractive but what people tend to forget is that they can also get you bold. In general avoid investments less than 6 months as they may sound lucrative initially but then you are also looking at a very risky investment.
Timing is the key element when it comes to lucrative investment. Thus, you need to develop this skill to see beyond the time. Analyse what you plan to do and always have an exit strategy, this is either done by you or your investment manager.
Only invest in a market if it really has a positive environment, excluding the fact that you have invested there before. Keep in mind that every market is different from the other. Never rely on your previous experience in a particular investment. Each market goes up & down depending upon the various local or economical factors.
Be Your Own Boss
For real estate investments, strive for direct investment. Never rely on partnerships, funds or share-based investment. Have a complete control over your investments. In other case, you must have positive cash-flow. Get the assistance of your real estate professional or investment expert to be able to come up with a flow whereby you can invest & cash out at the right time.