Succeeding in what can be a fast-paced industry requires experience, a knowledge of the industry and a toolkit that covers all eventualities and possibilities. Property investors already profitable in the industry offer these five important lessons to assist you in your bid to succeed as a property investor on a small scale or larger scale.
1. Listen and Learn
Successful landlords don’t sit by and wait for things to happen: they are found making things happen. They’ll share information and learn how to listen carefully to avoid the pitfalls that come with real estate.
Pay close attention to the detail of a property and the area it is situated in and listen to investors you trust.
2. Budget Carefully
Know the costs associated with property development and ensure you don’t underestimate the cost of renovation, fees, maintenance and additional costs.
Many investors underestimate and find cash flow is reduced as a result.
3. Accumulate and Grow
With more properties comes less risk as your cash flow will be more secure and your profit will increase. However, be sure to use reputable property inventory software to allow you to keep track of properties you invest in such as inventorybase.
Reading a good property investment publication such as Money Week can save time and help you keep abreast of market developments.
4. Screen Potential Tenants Carefully
You might be tempted to cut corners by letting a property to a friend of a friend, or you might attempt to reduce costs by going through the bare minimum of checks, but a good-quality tenant will help to keep your investment sound.
A good tenant will pay their rent monthly and will require the minimum of intervention.
5. Choose Your Speciality
Do you enjoy renovating period properties, is a new-build more appealing to you or do you like the value of ex-social housing and the profitability that can come with it? Choose where you see your niche in the market and stick to it.
This will not only allow you to develop personally as your knowledge improves and expands, but you will also become known for the type of property you invest in and opportunities might become more readily available to you.