If you’re an entrepreneur, and you’re not investing in real estate, then you might want to consider it.
While you may think real estate investing in 2020 is not a wise option, experts suggest otherwise.
Investing in real estate as an entrepreneur could be a lucrative opportunity for many reasons.
Firstly, it’s a great way to leverage profits from your existing businesses. Second, monthly rental and capital appreciation make an excellent way for the short term and long-term investment gains.
Apart from that, the recent rise in the IT/ITES companies and co-ed offices signals growth for opportunities in the real estate industry.
The best part is: you can (and should) always start small and work your way up.
Learning the market dynamics and investing small will give you an idea of the market gap and hidden opportunities.
And that’s when you know it’s “the right time” to invest.
Therefore, in this blog, we will discuss some tips for entrepreneurs willing to invest in property to give you a headstart.
Tips for investing in real estate
1. Start Small
Where to start? And how should you go about it?
These are some of the common questions entrepreneurs have.
Sure, starting could be perplexing, especially for first-time investors.
But, you don’t have to start by investing in multi-story apartments right away. While that is a significant aspect of it, you can start by investing in small properties like single-family rentals.
Advantages of doing so: you’ll gain market knowledge without risking much cash. Once you start gaining traction, you can invest in several properties.
2. Build your Network
One of the essential tips for an entrepreneur investing in real estate is networking.
Meeting your local investors and realtors and asking some fundamental questions is a good start. This will give you insights into how to sign contracts, which properties to watch out for, and how to deal with buying and selling properties.
At the same time, you will learn the market’s nitty-gritty by speaking to experienced local investors and realtors.
3. Assess your Financial Goals
Being an entrepreneur, you’re well-acquainted with goals. Goals for business, goals for a new venture, and more.
The same goes for real estate investment. It’s always advisable to chalk out your goals for investing in real estate, that’ll give you a clear direction.
So set aside some time for purely planning, learning the market, and putting some clear goals. This will also give you an idea of how much you should invest in and what property type.
4. Understand Market
It goes without saying — learning the market dynamics is integral.
Some questions you should ask are: does the area, you’re planning to invest in attracting tourists? Or, how is the job prospect?
These, and more, are the factors you should consider. The next thing you should do is get involved in the market. This means taking part in the day to day operations and seeing how things go because it’s challenging to learn about real estate without being on the site.
5. Think Big
Once you start to gain some traction, resist the urge to spend that money elsewhere. Instead, reinvest in your real estate business and move up the ladder. An excellent way to do this is by investing in a multi-unit asset.
So these were some of the tips for entrepreneurs willing to invest in real estate. This market is profitable, and the only prerequisite is to understand the market and get involved actively on the site, networking, and learning the fundamentals. If you need some help with investing in properties, reach out to our realtors at Buniyad and let us guide.