Entering the world of real estate can be simultaneously exciting and overwhelmingly daunting. You might have a deep passion for the idea of developing properties and turning them over for a big return on your investment but it takes more than hard work to succeed in this game. Determination is an important component of success in real estate, of course, but you need to treat this like a business. You’re buying and selling a product; that means you need your entrepreneurial head screwed on as well as your DIY head.
Don’t let the fact that you’re a beginner deter you, however. Every successful player in the real estate game had to start somewhere. They faked it until they made it. It’s up to you to use the success of other developers to guide your own journey. Learn from the mistakes others have made so that you don’t have to make poor (and very costly) decisions yourself. If you’ve no idea where to begin in such a competitive market there’s this guide should help you on your journey towards “making it” as a property development newcomer.
Get some help.
“I’m reading this article,” you reply. “That’s all the help I need.” We’re flattered but that’s entirely incorrect. You need to get your foot in the door if you really want to get stuck into the real estate game. That means you need to get help wherever you can. As we’ve suggested in the past on our site, you should start off by finding a consultant to advise you. Even if you’re financially stable and ready to invest in your first property, that’s only the start of it. It’s not as simple as fixing up the house to increase its value and then selling it for a higher price. How are you going to sell the house? You need a consultant to help you advertise the property and find the best buyer possible.
You need to build up contacts, essentially. As mentioned in the introduction, the goal is to avoid making the same mistakes that many of these successful entrepreneurs and property developers made themselves. Save yourself some money and avoid following in their footsteps; skip ahead to the successful stage. You should look into investment advisors who can help you make sure that the first property you buy is a safe purchase which will lead to profit. You don’t want to bite off more than you can chew. The goal is to make enough profit to start buying better and better places, moving slowly up the property ladder and making bigger profits. As explained over at http://study.com/, you’ll be more qualified to make solo decisions as you gain experience. The more experienced you become in the world of real estate, the less of a risk it’ll be to take on bigger projects. It’s a natural and sensible progression but you’ll definitely need an advisor in the early stages to help direct you and ensure you don’t pour your money into properties that are lost causes.
Raising a property’s value.
Let’s get onto the fun bit then. Once you have your first property, your goal is to increase its value so that you can turn over a profit. That’s the simple part of property development and the aspect of the real estate game that you most likely already understand. Of course, you may be handy with a hammer but that doesn’t mean you’re an expert interior or exterior designer.
That brings us to the first piece of advice: work on your property’s curb appeal. If you want your property to attract buyers then it needs to make a solid first impression. No matter how good a house’s interior, if the exterior looks shabby and neglected then everything that comes afterwards is going to look just as sour and unimpressive. Spruce up the paintwork, fix any chipped windowsills, and get in touch with your gardening side; line the front of the house with plants and flowers and spruce up the front yard.
“Buy to sell” or “buy to let”?
One of the big questions on your mind at this point in the article might be: should I sell on properties or making money by letting them out? It’s a hard question to answer. On the one hand, turning over a quick profit is an appealing idea. On the other hand, the market might not currently be in the state that serves you best and you could do better through rental properties in order to start up a constant stream of income. Buying to let might be a better route if you don’t have enough money to outright purchase a property. As suggested over at http://blog.hannesdreyer.com/, you could use the bank’s money to buy the property and then profit from renting it out (and some of that profit can go towards paying off the mortgage or furthering the rest of your property empire).
Of course, the buy-to-sell route might get you faster results if you’re prepared to really get stuck into the property market and make bigger profits. If you’re willing to put in the hard work necessary to renovate properties and turn them over for a larger profit then this might be a better type of business for you to build than a business built on a “buy to let” model. It can be smarter to buy a dilapidated house and fix it up; not only because of the costs saved on the initial purchase but also because you can improve the area in which the house is based. In turn, this can drive up the value of the house further as the market notices the improvement of the location as well as the property.
Expanding your empire.
Of course, the ultimate goal for your property development business is to grow. You’ll start off with one property, whether you’re planning on letting or selling that property, but you’ll be aiming to grow your empire to include more properties and make a steadily growing income. How do you begin on such a venture? How do you know when you’ve bitten off more than you can chew? As mentioned earlier, you might want to get some help when building up your business. You could look into a property manager to help you oversee all your many properties as your business continues to grow; organization is the key to expanding your business without losing focus.
You might even want to look into expanding your empire abroad. There are lots of opportunities for property development in other countries and you could check out sites such as https://rumahdijual.com/ if you’re looking for somewhere to begin. The great thing about the real estate game is that you’re dealing in a commodity which is needed worldwide. There’s no limit to where you can take your business; the industry might fluctuate in demand but it never dies out. People will always need properties, so it’s a good line of business in which to find yourself. It’s just about coming to learn the market and seizing the right opportunity to expand your empire when it comes along.
Research.
As explained throughout this article, being successful in the world of real estate is about having a business-focused brain. Yes, property developer can include the manual labor involved with renovating properties but you need to think about the end-game. As explained over at http://smallbusiness.chron.com/, you need to know how to monitor the market and predict fluctuating prices. Don’t jump the gun when selling; sell when prices are high.