Best way to start investing in real estate
Though Investments in Real estate is a very appealing concept but at the same time it is also full of lot of high risks. But the bottom line is that all kinds of investments are prone to the ‘Risk factor’ and actually why not? It is an investment and the prices of property may go up or down, thus the risk factor is certainly inevitable! However, realistically speaking the risks involved in property investments is bigger than the other investment opportunities, but then ….’Big risks also entail better rewards too!’ The fact is that if one invests smartly then one can minimize the amount of risks that are involved, and can also reap benefits of the investments.
Best Way to start investing in real estate
1) Educate yourself before investing: The primary step in investing right is first to educate yourself about choosing the right property for investment. In order to do this one can attend classes, talk to people, or do some research online to see what are the high investment properties that we are talking about and how much benefit can one draw out of it? You could also attend seminars to cater to this end. However; while attending the seminars one should check that the person conducting the seminar has an excellent track record in property sector. Moreover, it would also not be inappropriate to have a mentor who could guide you in case you are stuck with some obstacles, thus helping you to steer clear.
2) Buying property for investment: In case you are buying property for the purpose of investment then there are actually quite a few things that need to be kept into consideration. The foremost being that should you keep an account of repairs that needs to be done. Accordingly it is essential to get a quote of the requirements. After all, the amount spent shouldn’t be exorbitant. Therefore it is essential to run a check with your real estate mentor and seek his guidance before investing in this real estate property.
Secondly if you want to take up investment into property as a side business; then it is mandatory to build up a team of people that are highly proficient in this area. It makes a huge difference if one gets sound second opinions on certain issues. The team might give you an alternate angle or help you to look into something that you had overlooked. Therefore a team of likeminded approached people is necessary to help your business grow. Also once you step into real estate; be very positive in your approach. Thinking in a positive direction and being affirmative is very important in a business!
3) Investing in property without cash: It is also quite possible that you have an interest in investing in properly but you do not have any cash to do so. In that case you should look for people that have the money, but do not have any inclination in property investments. You could take loans from them and invest in property with an understanding to share the profits in mutually decided terms.
Consider legal complications before you invest in real estate investments
At time there is much legality involved in real estate investments. In that case it is therefore essential to have are liable legal advisor to waive you through this. For instance you could have invested in a property, but the government has already scheduled a highway to run through your property. In that case even though you are the owner but still you do not have any rights in the land, so much so that you cannot even sell it. Therefore these complications have to be considered and averted through professional advice.
Conclusion remarks: Thus where on one hand investment in real estate can be very profitable, on the other hand one has to be very cautious in their dealings and aware of the formalities before investing in this. By careful evaluation, the risks can be minimized to gain profitable investment avenues.
This is a guest article from Nitin Saharwal who is an MBA from IMT Ghaziabad and positioned as VP-Marketing at IndiaHomes.com