Top Ten Tips For Beginners To Make It Big In Real Estate Biz!

Top Ten Tips For Beginners To Make It Big In Real Estate Biz!


make it big in real estate

Investing in real estate can be much safer than investing in the stock market or a small business, since the underlying property retains its value. And if you are a beginner in real estate business, it is very important to read good reference books and learn from the savvy investors who make it big in real estate by investing to some of the best real estate properties!  Moreover, getting some handful tips and ideas from professionals, like CPD Homes, LLC would be very helpful. Here are some tips:

TIP_01: Know The Market!

When investing in real estate, one of the best ways to avoid issues is to understand the market.  Know how much the typical house in a community is worth per square foot and the rent you could charge for a given investment property. Renovate properties to make it more appealing to the expected buyer. Study and analyze to understand the market in the community.

TIP_02: Understand Your Costs Up Front!

Being a newbie in real estate investment, you need to understand your costs up front.  It isn’t just the cost of the property and realtor commissions, but also you’ll need to pay for repairs. Those who fail to budget for closing costs, insurance or utility costs can end up losing money on a deal.

TIP_03: Study the Rules!

Understand the degree of work that requires a permit before you start doing anything on the property.  Know the zoning regulations, local ordinances and other real estate laws in your city or state.

TIP_04: Avoid Hot Markets!

Real estate investors here may brag about the appreciation of their properties or rising rates, but new real estate investment is buying high and hoping it goes higher.  Therefore, a a good rule of thumb is to avoid hot markets altogether.  You risk buying at the top of the market and losing your money.

TIP_05: Buy Low!

Real estate investing can be compared to investing in dividend paying stock. The return on investment is based on how cheap you bought the commodity. However, you have to look at the return on the investment factors such as the neighborhood safety, property appreciations after flipping, local taxes, etc. 

TIP_06: Tap into the Hidden Market

The ideal case is buying property from a distressed seller. Forget foreclosure auctions; this can yield deals, but instead, look for homes with distressed sellers who haven’t put it on the market yet. Their motivation is the key.

TIP_07: Manage Your Risks

 By having a larger cash reserve, you’ll be able to pay for unexpected repair bills before you can put property on the market. When buying an investment property, aim to put at least 10% down. Second, maintain a large cash reserve.  Don’t go deeply into debt.

TIP_08: Go for Best in Class – Not “The Best”

Over-building a home is wasteful. Go for “best in class” touches, not trying to make an office building the fanciest or elite product. A common mistake in real estate investment is trying to develop a property to be the best in the area. They may try to renovate homes in a working class area and turn it into a luxury home. You can’t sell that for the same price you would receive in an upscale area. You end up losing money.

TIP_09: Maximize Value of Real Estate

Look for ways to maximize the value of the real estate, like flipping the home, fixing it up and selling it to a home buyer. Or fill it up with tenants and start looking for buyers. This is a turnkey property attractive to anyone who wants to jump immediately and make it big in real estate!

TIP_10: Manage Your Emotions

Never fall in love with an investment property. You’re not going to live there – someone else will.  Don’t buy a property for which the math looks bad because you’re afraid you’ll lose out on the deal.

Real estate is a great investment option for those who want to achieve financial success. However, you need to take care to avoid mistakes that cause so many dreams of getting rich investing in property turning into nightmares in bankruptcy court.

Need more information? CPD Homes is part of a nationwide group of thousands of investors who are helping tens of thousands of homeowners every year.  If you want to make it big in real estate, feel free to contact us at 216-282-4332. Visit www.cpdhomes.com to know more about us!

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