A few months back, I met a man who was in his fifties. As soon as we started having the conversation he started narrating me his story of his younger days. The one thing that makes my eyes wide open was the fact how he swaps his fortune from offering financial services to how he become a successful entrepreneur in real estate. This is the reason that I come up with this post so that I can share his masterpieces of knowledge with you guys. Who knows that his past experiences can make you a successful businessman of tomorrow.
Buy What You Know
There is no point to jump in the pool if you don’t know how to swim. Same is the case in the real estate business. Never dive into any property until you are not sure of its locality. Check all the papers if the property is not already mortgaged. And above all this, you should be clear in your mind that for what purpose you are purchasing this property. Follow a simple Rule of thumb, more you will research the market and do homework, more you will be able to turn the table in your favour while cracking the deal.
Let Go of Your Ego
This man also told me about a very popular trend in the market. There are hordes of people who wanted to buy pricey glass towers that can be visible a lot before you reach. The motto is to brag it in parties, and hear it from people, “Yes, we know of that place”. This practise is nothing but the advertisement of their egoism.
Instead, go for the properties where you can pay less and negotiate harder. Then, rent or sell your property to someone who is as savvy as you in finding a good deal. It’s always better to buy properties that are more profitable than shelling out extra for a flashy address.
Recession-Proof Your Purchases
With years of experience in his hand, he told me about a very common Indian mentality. In India, people can happily pay a lot than required in/for purchasing a property only to guard themselves against recession. No one can predict what future holds for you. So, even after doing all your permutation and combination, you can never time your investments. Alternatively, you should invest in smaller and budget-friendly properties, which can yield a higher profit than the modest ones.
Sell it to a Right Seller
Buying a property at the best price is like winning a half of the battle. Your best deal will never earn you profits until you are able to sell it to a right seller. At the same time, searching for a seller is as same as searching for a needle in a haystack. So, even if you are not getting a deal matching your expectations, you can rent it without a second thought. In the meanwhile, you can either take benefits from your monthly rental income or hunt for a seller.
There is no rocket science or a predefined set of rules to become successful in the real estate business. All that you need is to search for a right property, and a mind to calculate which property can yield a better profit in future.