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I’m becoming a realtor now so I thought it would be a great idea to share some great content with you so I thought I’d take the time to write out an article telling you about how to invest in real estate with little to no risk. I don’t expect it to be anywhere as good as the type of posts you see written on Forbes or the Huffington post but I think it will be alright.
When investing in real estate, you want to look at related developments and things going on the area, real estate is subject to externalities meaning the location of other things effects the value of your property. If there are lots of developments and successful businesses opening up in the area such as Wal-Mart or any other big-box retailers, that’s a great sign. Now, if they’re moving out, that’s not so great a sign.
Keep in mind, when investing in commercial real estate, you want to look closely at cash flow, you’re not only purchasing it, so you can sit on it and sell it when it appreciates. Of course, the natural trend of real estate is such that it will stay on the rise aside from a few hiccups along the road. However, you don’t want to rely on your ability to guess how much the prices will go up and then try to cash out at exactly the right moment while sitting on all that debt, ideally, you want a property that is cash flow positive from day one.
Make sure to get insurance on your property, you don’t want it burning up and taking all your cash flow with you while still having to pay-off the loan. You want to make sure you’re secure, and have the ability to seek restitution even if your property goes up in flames.
Just remember not to be in too big of a hurry when investing in big deals, you only need to be right a few times to make a shit-load of money. Be patient, do your due diligence and make sure you know what you’re getting yourself into. Ask your realtor if you don’t know. A real estate agent in surrey I once knew told me a great story about how he helped someone make a great investment decision. I’m sure you could reach out to a local realtor who you like that you could connect with as well.
Make sure you consult with your accountant and your lawyer before taking the plunge into the risky commercial real estate world, you’re dealing with big numbers, using lots of leverage and will likely have skin in the game. The best way not to get burned is to know what you’re doing. To do this, take seriously the advice you trust and don’t make dumb decisions, don’t leap headfirst into a contract you know nothing about that’ll lock you in. Ask you accountant if all your numbers for the property add up together correctly.
That’s all for my first post, let me know what you think. For more information on real estate, you can check out one of my favorite sources https://www.realestateabc.com/.