Many people get into real estate investment thinking they will instantly strike it rich. This is rarely the case. There is much more work that goes into successful investment growth. In our latest post, we will explore ways to accelerate and amplify your real estate investment success.
Real estate investment is a great way to bring additional income to you and your family. The trick is not only to find great investments but to find investment opportunities that provide sustainable growth. You don’t want to invest your money somewhere that has the potential to lose all of its value overnight. Keep reading to learn some great tips to secure sustainable investment growth!
5 Tips for Sustainable Investment Growth in Michigan
Tip #1: You Are Running A Business
When you venture into the world of investing you are in all reality, building a business for yourself. It should be treated as such. You should dedicate time to your work and deal with people in a fair and consistent manner. Focus on your job at hand and don’t get caught up in the details. Sometimes you have to rely on your head over your heart when it comes to investment, and this isn’t always easy for newbie investors to manage. In real estate investing, time really is money. Market prices can fluctuate quickly. You will want to be able to swoop up great deals as they become available and unload properties you want to flip in a timely manner. The longer you hold a property, the more it will cost in the long run!
Tip #2: Have a Plan
Just like any successful business, you should have a business plan. This will help you create goals along with actionable steps to get you there. Ask yourself these questions:
- How many properties do you want to own?
- What kinds of properties do you see yourself investing in? Single-family? Multi-family? Commercial?
- Will you require the help of a property management company?
- What locations will you consider investing in?
- What is your price range?
- What size property are you after?
- Do you want to buy and hold or go for the quick flip?
- What is your exit strategy?
- Are there other partners involved? How are profits divided?
You should have clear answers to all of these questions with as much thought put into it as possible.
Tip #3: Build Your Power Team
Once you begin your investing journey, you are bound to meet lots of professional along the way who can help you. It is important to foster and nurture these relationships so you can find the professional YOU want to work with. On your team, there should be an agent you turn to when the situation arises. A lawyer whom you consult with on all deals. An accountant who keeps all of your books in order. And a lender who will be there with the funds when you need them. By surrounding yourself with a team of people you can trust (and enjoy working with) will streamline your processes and make things much easier for you!
Tip #4: Find A Mentor
Building a relationship with someone who has been in your shoes, can be invaluable to your success. Your mentor should help keep you motivated, provide you with advice on potential purchases, and help you avoid making costly mistakes. You will learn more from someone who has done it all than you would in any book.
Tip #5: Don’t Be Afraid To Stay Off The MLS
Some of the best investment deals are found off the MLS. Many are “For Sale By Owner” properties you can find at a great price. Look to work with private owners and utilize other real estate websites in your search.