Now a days, information is everywhere, lots good, lots bad. Some things you find regarding REI are from failed investors, giving advice, that has been circulating for years. The market changes, the prices change, interest rates change, there is consistence in one thing only- preparation that you can take to minimize losses, maximize profits, and stay ahead of any curveballs coming your way.
I've come across an article, with specific tips from some extremely successful investors, like Ralph DiBugnara President of Home Qualified.
I would like to share three of the key tips, I think everyone should take into consideration when getting into REI, I will link the article so all 23 tips can reviewed!
1. Don't Over Rehab- it's easy to want to put in a lot of money or changes to a property in rehab in hopes to get a better ARV, HOWEVER, what's more critical than throwing money at an ARV, is understanding that often times you need only meet comparables in the local market. It's not a requirement to have granite in every home, meet your market with what their needs are.
Another side note I would make- avoid getting complacent with looking for the best deals on services you need. I find often times, there is a cheaper, equivalent way to repair/replace something that an investor hasn't even considered, or sticking with a handful of trusted contractors, and not sourcing new ones, that may provide better services at better prices. The only way to know is to do research and due diligence, and continually asking questions and hunting for new resources you can leverage.
2. Leverage The Experts- it is genuinely impossible to know everything in real estate. Hence why there are so many professionals in a specific area as it relates to Real Estate. This is common sense, however, I would advise not falling into the "I know best" mentality. A open mind, desire to learn, and intrinsic motivations to get the work done are required to excel in REI. Thus, every single professional that you come into contact with knows something you don't and potentially has a new perspective to offer that can lead to much better results in the future, and new strategies to implement. Stay hungry, and open to learning!
3. Have Multiple Exit Strategies- "One should never buy a property without having multiple exit strategies." REI requires a goal, a target that the investor is hunting for. Whether its a flip, buy & hold, BRRRR, multi-families, land/commercial there is a goal that must be identified. However, don't get yourself trapped into a loss, simply due to not planning for things to change. As we addressed earlier, the market is always changing, meaning certain strategies that were working, can suddenly be the worst way to invest in that specific market. Have a goal, an objective, and a mission. At the same time, plan to have multiple options of getting out, so if the carpet is pulled from under you, you can rebound and stay ahead of the curve. Research strategies for exit, find the one that is most desirable that you want to achieve, but leave room for a different strategy should you need it!
+1. HAVE FUN- This is a side tip; not included in the article, but nevertheless I feel is important to remember. A REI should view their investing as a business, and they should enjoy running that business. REI can be extremely rewarding, and extremely stressful. Enjoy the process, so you can enjoy your results!
https://learn.roofstock.com/bl... Here is the link to the blog post, with the other 20 tips, and the direct quotes from other Real Estate Investors. I highly recommend this as a read, whether you are experienced, just starting out, or are considering getting into REI.
Any questions, or comments, or suggestions of tips please drop them!
