Getting involved in real estate investment can feel overwhelming. When you aren’t sure where to begin or how to get started, you mind end up with nothing but frustration. In our latest post, we offer 7 pieces of advice for new investors in Detroit.
#1 – Network As Much As Possible
In real estate investment, it’s not always what you know, it’s who you know. By getting yourself out there and meeting a lot of people in your industry, you increase your odds of hearing about potential deals. Build relationships and let people know about your desire to buy. You can join different networking and investment clubs, or go out of your way to meet people at seminars and events. Talk to other investors and share deals. If there is a deal that isn’t right for you, let others know about it. The favors will be reciprocated. If you are ready to invest in Detroit real estate, really get the word out. You never know who might be selling and by going direct, you will both be able to avoid the costs of working with an agent.
#2 – Know The Costs
You might think that by viewing some reports and running some numbers that you have the financial part all figured out, however, this is rarely true. In real estate, there are always unexpected costs to contend with. Plan ahead and set aside some reserves for the unexpected. Owning a vacant property is expensive. Do everything you can to get a tenant in there or sell the property as quickly as possible. Be sure to set aside extra cash for maintenance and your yearly property tax bill.
#3 – Set Realistic Expectations and Goals
Don’t expect to get rich overnight. Your expectations should be based on reality and not on some get rich quick story you read online. It takes time to really learn the ropes and to make money with real estate investment. Always set goals, but base them in reality, not on what you hope to happen.
#4 – Know Your Strengths And Weaknesses
Sometimes it pays to partner up. You might be excellent at closing a deal but horrible at marketing the property. Knowing who will best compliment your strengths and weakness can be a game changer for many investors. Finding people to compliment your investment style will help you both to win. You will both be able to flourish in the areas you shine, while avoiding the things you aren’t as great at.
#5 – Think Outside The Box
Consider properties of different types or in different neighborhoods. Unlike shopping for a personal residence, when you are shopping for an investment property, it is all about the numbers. You can look in areas you may not have considered for yourself. You might be comfortable with single-family real estate, however, you should be able to spot an amazing deal on a duplex should one happen to come up.
#6 – Build A Great Team
You won’t be able to do it all alone. You will need to have industry professionals you know and trust helping you with the deal. Develop relationships with agents, underwriters, wholesalers, cleaning companies and direct sellers. By having a company such as Sell Inherited House Detroit in your corner, you will be able to buy Detroit houses directly, and at incredible prices!
#7 – Be Patient
It takes time to learn the in’s and out’s of your market. The research might take you hours in the beginning, however over time, you will be able to rattle off numbers off the top of your head. Don’t give up if your payday doesn’t come in right away. The best things take time.