Looking to get into real estate investment? If so then we have some great tips from the brilliant Ali Ata which can help you to maximize your earnings. Ali has worked in real estate throughout his 25 year career and during that time he has learned all of the inner workings of this industry, and the mistakes which beginners must avoid. This is why we caught up with the real estate guru, to find out what beginners need to know before they start investing in property, so let’s take a look.
Crime Rates and Amenities
Don’t fall into the trap of failing to check everything about a property before you invest, and that includes the amenities that are close by and the crime rates in the area. So many beginners only focus on the property type and the condition of the property rather than the surrounding area, which is a key mistake. Buyers are going to be looking at the whole package, and so should you.
If you have $100k to invest then buying a property for $99k is a mistake, because you are going to be tying all of your money up. The smart move is to always ensure that you have a few thousand in the bank with more coming in monthly, this way you will have enough to cover emergencies. When you buy properties there is always extra spending to be done, be it on fees for solicitors or maintenance issues, and this is why you must ensure that you have access to cash should these situations arise.
Most first time investors will only stick to their own area rather than looking further afield when it comes to buying property. This is all well and good if there is genuinely some value to be found in your own area, but sometimes you may be far better off looking to other towns, cities and states, to get some really good value.
Something else to look into is any rapid growth area, and how to get in quick before prices boom. For example if a government project has been announced that is going to bring massive amounts of work to a certain area, then you know that there is going to be a higher demand for house buying and renting. Keeping an eye on movements like this can help you to get ahead of the game and make some serious cash.
Leaving a maintenance issue when it arises is never a good idea and no matter the cost or the interference which fixing the issue will have, it is always better to do it as soon as possible, to avoid any future problems. The cost of a small maintenance issue now will pale in comparison to how much it may cost in the future when it really causes a problem.
Stay on top of tips like this in order to avoid rookie mistakes, and maximize your real estate investments.