Is investing in Real Estate a good or bad idea? Part 3/3
Now we bring you the last installment of “Is investing in Real Estate a good or bad idea? and the considerations that you should take into account and apply in your real estate business.
We hope these have been very useful to help you make better decisions, And as always, count on us to help you reach your goals together…
6. Study the Value Offer
Real estate is of various types and each one offers a different value.
With offices, its value is in the accessibility, connectivity and general working conditions, on the other hand for housing, everything depends on the needs of the tenant, for a young executive, it will be different from what a family man is looking for.
This is why you should think about what would be your ideal tenant.
7. Legal and Juridical Framework
Success is in the details; and this applies to real estate investments as in any other operation, so be sure to inform yourself correctly on the legal aspects of your investments.
Seek relevant advice and do not leave loose ends.
Not doing so will lead you to regret it in the future.
8. Calculate the Profitability of Real Estate Investments
When making concrete calculations, be realistic, do not overestimate the expected profitability.
If you do, you will be disappointed, or worse, you may commit to rents that you will not receive.
It is better to fall a little short of realism than to be disappointed or get into debt.
9. Estimate the Liquidity You Will Have
Profitability is not the same as liquidity:
Profitability is the general estimate of value.
Liquidity is the capacity you have to pay your expenses with the income from your investments.
Make both calculations and be moderate in your liquidity estimation, especially at the beginning.
10. Seriousness and Reputation of the Real Estate Investment Offeror
Evaluate first the seriousness and reputation of who offers you a real estate investment.
Trust those who present you with a serious, long-term plan, rather than those who promise you magic formulas.
Consult the previous investment portfolio of the company offering you the investment, if possible, ask for testimonials from previous investors.
Investing in real estate is easier than investing in other sectors. The level of knowledge and time required is less than in other areas.
But this does not mean that it is a risk-free investment.
The important thing is to control these risks, manage the variables well and put yourself in the hands of professionals in the field.
This is the only way to invest in real estate successfully.
And don’t forget for any asistance, please give us a call (305) 930-1160 or visit us at 605 Lincoln Rd Suite 250, Miami Beach FL 33139.