Last Updated on June 22, 2023 by Kravelv
When it comes to successful investment in real estate, it can be challenging and high risk. There are a few ways investors can make a profit from real estate, such as joint ventures, wholesaling, and property management. As real estate is a highly competitive market it’s important that you have all the information and knowledge of what it takes to be successful.
Having the knowledge and understanding of the real estate market and the risks involved requires research and seeking out professional advice. Vals SA is a valuation firm that services all types of property-related purposes, such as residential, commercial, business, and plant and machinery, tailoring service for your requirements whether you are buying, selling, or just require a valuation for a certain purpose. Building a network is all part of a successful real estate investment.
1. Make a Plan
To establish and achieve short- and long-term goals, real estate investors must approach their requirements as a professional. Having a plan will allow investors to visualize the big picture and not only shows commitment but will maintain focus on the important goals you have set out to achieve.
2. Know the Market
Real estate investors acquire in-depth knowledge of the market in the selected area required for their investment, it’s important to focus on a particular location and compare residential vs commercial properties to determine which investment would benefit the goals you wish to achieve. Acknowledging current conditions and plans for the future is essential for staying ahead of current trends, by doing this, an investor can predict changes and create potential opportunities.
3. Be Honest
Real estate investors need to maintain high ethical standards. An investor’s reputation is crucial in building a network as well as a successful portfolio, so they believe it’s better to be fair, rather than trying to see what they can get away with.
4. Develop a Niche
Being focused as an investor is important to gain in-depth knowledge that is essential to become successful. For long-term success, it’s about taking time to build up your portfolio and to have a clear understanding of the specific areas. Depending on the investor your niche may be high-end residential, low-income multi-units or rural farmlands. Investors can have multiple niches this just means having a broader knowledge and understanding of the different markets and what is required.
Just like having a good understanding of real estate and how you can reach your goals, it’s just as important to stay up to date with laws, regulations, terminology, and trends that all form the foundation of the real estate investment business. By staying educated you can adapt yourself to any changes that may occur as well as economic trends. Staying ahead of what may directly or indirectly impact you is important.
6. Know the Risks
No matter the investment property type there are advantages and disadvantages involved that you need to factor in and be prepared for. How you handle these risks will depend on the success of your investment.
7. Finding Help
To do things on your own can be a challenge, especially when learning the real estate investment business. When dealing with a difficult decision or problem having a support person or professional in your corner will help you make the right informed decisions to solve the problems. As a real estate investor, you know that any additional costs such as housing funds are worth it to know that you are on the right track to success. It’s all about building a network to provide support and create opportunities.
Some might say real estate investing is an easy way to wealth, but there is a lot that goes into your investment being successful. It’s a challenging business that requires expertise, planning, focus, and professional advice that can set you on the right path. Building a successful business/ portfolio of your investments for a long-term return is every investor’s goal, how you get there comes down to research, expert knowledge, and having the right team in your corner.
Kerryn Lee is an API-qualified property valuer with upwards of 20 years of experience working in the Adelaide property market. Her expertise spans over all property types and sizes and includes specialisation in litigation, compensation, and Family Law Court property valuations. Using this experience, Kerryn has completed valuations on large-scale properties within South Australia valued at over $10 million.