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34% of Americans once again chose real estate as the best long-term investment option in a recent survey. There was only a 3% difference in renters vs. homeowners. 36% of those who already own stock also still say it's the best.
The real estate market may change almost as much as the stock market, but it's more like comparing a tornado to a thunderstorm. Having the right plans in place can help you ride out any dangers on your investment journey.
Read on for three key tactics to succeed as a real estate investor.
1. Research to Find and Add Value to Properties
The idea of "flipping" a house, or buying a property that needs improvements and fixing it up to sell it, has become increasingly popular. 8% of all home sales were flips in 2023 compared to 5.7% in 2016.
A real estate investor can take a similar idea in their investment journey. Buy an undervalued property at a bargain that you know can become profitable. Add value with property improvements such as:
- New lighting
- Upgraded appliances or kitchen features
- New paint or flooring
- Enhanced curb appeal
Doing this requires careful research. Look at the trends, laws, and conditions in your local market.
Real estate portfolio growth means watching more than one neighborhood or property type. Consider a wide range and spread your investments out. Diversifying them helps mitigate risk.
The most important thing to watch is your metrics. Track your income and expenses to see how you're doing and how you can improve.
2. Start Networking and Trust-Building
The saying "It's not what you know, it's who you know" comes into play when looking for profitable real estate deals.
Build a network of industry experts, including:
- Accountants
- Real estate agents
- Contractors
Look for mentors with more experience than you. They can give you real estate market insights you wouldn't have otherwise known.
Build positive relationships based on trust. Treat everyone from your renters to potential partners ethically and with respect.
This helps you generate a positive reputation which will help you get more referrals. They're a key part of all investment success strategies because they're one of the best ways to generate more business.
3. Get the Right Help
One of the simplest property investment tips is to not assume that you're an expert in property investment. You'd have to also be an expert in taxes, laws, finances, maintenance, and more.
A property manager does have experience in all necessary areas. They have a team ready to handle everything.
The time, money, and stress they'll save you makes them worth the investment. It doesn't matter whether you're a first-time real estate investor or expanding your portfolio.
Becoming a Profitable Real Estate Investor
The best strategies for a real estate investor involve searching for affordable properties to upgrade, watching the neighborhood and your own metrics, networking, and hiring help.
GEM Realty Group understands that your property investment is a treasured asset. We treat it with the utmost care and attention.
Our passion is using our property management expertise to provide our clients peace of mind while also giving back to the community through local charities. Contact us for all your real estate needs.
