Real Estate is no child’s play, there are so many things to consider that it’s really easy to get lost in the process of buying a home or just a property to flip and sell. But before you get in too deep, there are some basic tips and tricks you should consider from experts in the field.
From prices to taxes, it can be refreshing and incredibly helpful to have a plan before getting started. There are several ways to get initiated, but selecting one strategy and sticking to it as much as possible will save you tons of trouble. Equally assuring and trouble saving is a clear understanding of your numbers, which is as important as any plan you may create. A transparent budget will help you set boundaries from the beginning. Talking about boundaries, creating a list of neighbourhood options and researching about them will also limit your options which in real estate is not always a bad thing.
Having a plan (also called a real estate investing strategy) will guide your actions from the start, reducing the chances of unwanted surprises on the way. Creating this plan will take time and effort but it is completely possible. In order to start planning you can:
- Establish a new savings plan if you are getting started, or a growth plan if you are already economically stable
- Investigate investment strategies that have worked in the past and take notes
- Choose one or several neighbourhoods that you are interested in and read about them (prices, taxes, neighbourhood styles, etc.)
- Talk to other experienced real estate investors, realtors and learn from them
- Create a plan and review it with an expert
Once you have created The Plan, it is crucial that you feel comfortable with it, this will give you the necessary confidence to carry it out and stick to it.
Before you get started with your master plan, having a clear understanding of your numbers is one of the critical elements. Once you know how much you are willing to spend in a property your options will become clearer. Having a budget sets boundaries and avoids future complications.
Establishing a budget is not always about how much you can spend, but also how much you want to spend. Because the property is below budget it does not mean it is within your targeted specifications. Some tips from experts to stay on track when it comes to numbers are:
- Don’t get emotional about a deal, know your numbers and stick to them
- Confirm all the information you get about a property like potential revenue, future expenses, costs and so on
- If you do not have the numbers don’t make an offer
- Learn the facts on taxes and prices with experts, the internet is not always the best advisor
- Don’t go cheap on repairs they end up costing more in the long run
- Always plan for the worst, keep that in mind when deciding your numbers
- Learn your market’s numbers
- Don’t give up
As you can see, spending time on math can be as important as establishing a good plan of action. With real estate, it is easy to get emotional about an investment, properties sometimes speak to our soul, but going over the budget can be the beginning of many difficulties. Having an influence on how much you can spend on renovations or repairs after the buy, with that in mind it always helps to stick to the numbers.
Real estate can be a complicated subject, which makes it harder to find accurate information about it online, which is why expert advice is the way to go if you want the facts about taxes, pricing, and upcoming neighbourhoods to be on point.
But the most important thing is to not give up! Even when it seems you will not find the right place, there are always new properties on sale and one of them might just be the right one for you.
It may be helpful to look up several neighbourhoods where you would like to invest, this will amplify your options and price range. Keep in mind that every neighbourhood has a list of characteristics to take into account, such as:
- Neighbourhood style, not only landscaping but architectural
- Neighbourhood activities, schools, malls, connections, and many others
- Past and present pricing
- Number of multiple offers or real estate competition
As you can see there are many variables to consider in order to choose the correct set of neighbourhoods where you would like to look for properties. All their characteristics have important leverage in the pricing of the assets sold in those areas.
As an example, for things to check when investigating a location like Key Biscayne:
- Properties increase in value as the years pass, a positive sign when investing for future transactions
- Multiple offers are rare
- Prices range from 2.000$ to 500$ on average
- There are schools in the area
- Well-connected and close to South Beach, Tropical Isle Homes, Cape Florida, Biscayne Key Estates
Having all this information before making any big decision can save you a lot of trouble. As they say location, location, location, it’s one of the biggest elements when investing.
It may seem like a lot of work just to buy property, or is it? The bigger the investment the bigger the profit. Investing in property takes time and effort but, in the end, it will all be worth it, even if it is to buy, flip and sell.
And now you know how to get started, make a plan, pick a place and have a clear budget. If you stick to these essential practices of real estate all the process of buying or selling will be much easier than it seems.
Are you ready to start your investment plan? Start researching and take a look at our social media channels @TheCotoGroup to know more about real estate. If you need some expert advice contact us at The Coto Group (305.422.9286 / 305.803.3059) we will be more than happy to help you with your next investing adventure.