Ali Ata has spent over 20 years in the real estate investment industry and the man who was once a beginner in this industry is now buying and selling millions of dollars each and every year. Ali is also a very dear friend of mine which is why I wanted to pick his brains and find out what tips he would offer to a newbie starting out in the real estate investment game, based on his own experience and that of others who he has gotten to know in this industry. If you wish to get into real estate investment then here are some essential tips to remember.
Neighborhoods not Homes
Something which Ali says that he wish he had known earlier was the power of an emerging neighborhood and what it can do for house prices. If there are new building projects, community incentives or perhaps new workplaces being built in certain areas which are going to provide and abundance of jobs, this is a neighborhood which you need to invest in, as early as you can.
Checking Crime Statistics
It is absolutely essential that you check the crime statistics as part of your neighborhood check. People can deal with having to travel a little further to a better school or for their job, but they can not and will not be looking to buy a property in an area which has a high crime rate, especially if they have children. Even some of the nicest properties are in areas where there is increased crime, so don’t invest until you have check that out.
Maintenance Issues
If you are buying the property with a view to rent it out then it is absolutely essential that you fix any maintenance issues as soon as possible, before the issue gets any bigger. This also means not cutting any corners with repairing maintenance issues, nip them in the bud now and forever.
Diversify
It is really important that you don’t put all of your eggs in the same basket here, especially when buying your first couple of properties. It is tempting to buy in your own back garden but it may be a smarter move to think about investing in other states and cities, so that you can minimize your risk and maximize investments.
Research
Don’t go into the investment game gung-ho and expect to do well, it is absolutely essential that you are preparing well and doing as much homework as humanly possible. You should be looking at a range of markets, watching how they move, understanding the impacts which move the prices up and down and working out where you fit in and which type of property you should be looking at in order to make the most money.
The key to succeeding in this game is knowledge and information, if you seek to learn as much as possible then you will do well.