by Sterling Luxury Group
Real estate investing has been around for centuries, but the factors shaping today’s real estate investment market and the strategies that work to succeed as an investor are markedly different than they were just 5 or 10 years ago. However, below are five sustainable real estate investment tips that can help you prosper as a real estate investor no matter what shape the market is in.
Invest in undervalued rental property on the fringes of desirable neighborhoods.
Rental properties located in lower to middle income area on the edge of more desirable neighborhoods typically sell for half the cost — or less! — of similar properties in bordering areas, but rent for about the same price. Your property has the potential of delivering a return of twice or more than the initial investment.
Invest in properties with proven cash flow. With speculative investing, you are left hoping and waiting for the property to increase in value. And sometimes, this just never happens. Investing in middle to lower homes allows you to greatly increase your chance of having guaranteed profits because as the economy improves, lower class families move up to better homes and during economic downturns, middle class families move to lower cost properties.
Increase the security deposit and decrease your risk.
Two of the most costly problems for rental property investors are unpaid rent and risk of property damage. Raising your security deposit will help protect your profits and it will also help you attract more qualified renters.
Rethink your tenant pool.
Most rental owners shy away from renting to families with children and pets because they are afraid of the wear and tear on their property. But this is a mistake you should avoid. Families tend to be more responsible and take better care of the house, plus they already expect to pay higher security deposits and are actually the most likely group to become long term tenants because they have trouble finding other landlords willing to rent to them
Communication is key.
Negotiation skills are essential in real estate investing but instead of focusing on getting only what you want, work towards win-win solutions that let others know you have taken the time to understand their needs as well. Listen carefully and determine what is most important to the person you are communicating with. With practice, you’ll learn how to develop win-win deals that provide solutions to other people’s problems and lead to your own personal financial gain.
Sterling Luxury Group redefines the meaning of living a luxury lifestyle. From helping you select the perfect home through Sterling Luxury Homes, to refining the finishing touches of your interior decor through Sterling Home Styling, to styling you from head to toe through Sterling Personal Styling, let us redesign and restyle your life from Miami, New York, L.A., San Francisco and Dubai.