The key to succeeding when investing in real estate

Posted March 26, 2021 16:23

Have you considered becoming an expert in real estate investing? If so, it is important that you know how to increase your power to buy and sell. For this reason, before going out to hang a sign that says ‘for sale’ , you should know some effective strategies in order to obtain the best results.

If you are new to this world, here I share with you some tips to succeed.

one. Be wise when buying your first property

The first step to buying your first property is that you consult experts in the field and when doing so you make sure that:

  • Check your credit record: the point that I always emphasize, because it is necessary that you have an excellent or almost excellent credit record so that you can access better financing options.
  • Select the right property: When you are buying a house, the first thing you should do is buy the one that suits your needs at the time and that offers a certain "guarantee" on the return on investment.
  • Prepare to improve your home: when the time is right, so it is advisable to monitor the market through the hand of your real estate agent. In the same way, it is important to always carry out the necessary maintenance in each season of the year.

two. Add value to your home

As your home appreciates, you can add more value through renovations that require a moderate or high investment such as:

  • The kitchen or bathroom of the main room: even if you do not renew any of these in its entirety; doing it to a lesser extent will make a difference, such as the sink. With a little more budget you can also choose to make renovations in technological terms, adding appliances that save energy or facilitate household chores.
  • Add a few extra square meters: If possible, transform your garage, the living room or an extra room.
  • Changing floors: An old floor can reduce the value of your house, so changing it to a new one will make your house look like new.

3. Work on the equity in your home:

This is calculated through a simple formula where the remaining amount of the mortgage is subtracted from the current value of your house. And how can you make it bigger?

  • Put more money in the deposit at the time of purchase: In addition to reducing your financing costs, this increases the equity. You just have to make sure that your finances are not affected by doing it this way.
  • Increase the amount you pay for the mortgage: Instead of paying the minimum mortgage amount, pay a little more if your finances allow it. With these extra payments month by month, you will reduce the remaining amount of the mortgage.
  • Monitor the current market value of your home: Since the equity in your home resides in the current value, you can wait for it to increase in order to increase it.

4. Check the possibilities in the market

Another way to quickly scale in the real estate business is through constant monitoring of the market. You will not only be able to familiarize yourself in terms of real value, but also in investment opportunities; especially when you have a specific area where you would like to invest.

Remember that if you want to be successful in the real estate industry, you need to buy your first property wisely. If you are planning to live there, then make sure it suits your current needs and set aside the extra space and other things to consider when buying another property in the future.

Lastly, don't forget to add value to your home before selling it. Simple renovations or repairs to complexes will always increase the value of your home and even impact the equity, allowing you to access a mortgage for a second property if you wish. Remember to always monitor the market and go hand in hand with your real estate agent.

Do you have any questions after reading this note? Do not hesitate to contact us and schedule a One-On-One appointment through the following link: We will make sure all your questions are answered !