Real estate investors often look to single family homes for high returns because they can often be quickly fixed up and resold for a good profit. However, there are many factors that you need to consider if you are to be successful in any real estate investment venture involving this type of home.
The following are five necessities for anyone hoping to enjoy large returns with single family home investment over the long term:
Putting adequate and targeted research into every single home you invest in
Some real estate investors make the mistake of grouping certain homes together when contemplating their individual resell prospects.
It's important to recognize that every individual single family home is different. Analyze not only a home's general location, but also the amenities it offers and how it has been cared for by previous owners.
Even homes in the same development that have almost the exact same designs will differ, and failing to account for these individual differences while making offers could cause you to lose money in your investments over time.
Keeping up on market news
Doing initial research on a particular market is not enough. You need to be constantly updating your knowledge of the market you're working in by reading the news and keeping your eye open for new developments and trends that are going to influence real estate prices in the neighborhoods you're dealing with.
Creating a brand
Many of those involved in real estate investment unfortunately don't readily recognize the importance of brand marketing. However, with single family home investment you do have a clear target audience, and you will build up a company image over time if you're repeatedly doing business in the same area.
It's therefore important to work at establishing a recognizable brand over time and to market that brand using social media to promote awareness of your business in your area.
Accurately calculating all of your expenses
Overlooking expenses or failing to predict coming expenses is a big reason why a lot of business ventures fail. You need to know how to manage expenses if you are to succeed, and managing expenses is probably more complicated than you've predicted.
It's hard to predict the total costs of extensive remodels or maintaining a home over time. Therefore, you need to assume the worst when making your budget predictions to keep surprise expenses from compromising the profitability of your investments.
Expand your market over time
It's a good idea to start out focusing on a particular geographic area. However, over time you're going to need to expand if you want to continue finding the most promising investments available.
If you find that the market you've started out in is limiting your potential, expand to new areas after putting adequate research into different local markets.Share
14 June 2017
Although I've never worked professionally in the real estate business, I sure know my way around it. How, do you ask? Well, I have simply rented a lot of different places and worked with a lot of different landlords and real estate agents. In the past 7 years I've lived in 11 different houses or apartments, none of them my own. In finding those 11, I have looked at literally hundreds of apartments. I used to hate house hunting, but now it's kind of fun. You just need to know what you want and the right questions to ask. Hopefully this blog can help you learn some of the tricks of the trade from another renter like yourself.