real estate investor represented by a wooden cutout shaped like a house, next to stacks of coins with growing plants set on top of them

How to Succeed as a Real Estate Investor

Featured image by Nattanan Kanchanaparat via Pixabay

To succeed as a real estate investor, you must always look for properties that will offer you a high return on investment (ROI). For example, key factors you need to look for are location, condition, and rent potential.

However, there are other considerations as well. For instance, how many bedrooms does it have? Is it located near the beach or in a secluded spot in the country? Do you have sufficient cash to cover renovations? Before you buy an investment property, ensure it has the qualities you’re looking for and more.


Narrow Your Search

It is important for any real estate investor to narrow your search and focus on properties that meet your needs. You can do this by researching the area, determining what’s available, and looking at how much you can afford. In addition, you may want to consider the following:

  • The type of property you are looking for (for example, house or apartment)
  • The location of the property such as city center
  • Whether you will use the property as a home or an investment property

To Succeed as a Real Estate Investor Do Your Homework

Before you buy, do your homework.

You need to know how much the property is worth. You have to understand how much it will cost to renovate. If you’re planning on using it as rental property, consider the rental market in that area and find out how other investors are doing with their properties.

Consider the Neighborhood Through the Lens of a Real Estate Investor

Check the crime rate. If you’re considering being a real estate investor in an area with high crime, it’s probably not worth it. You want to be able protect your investment from theft and vandalism.

Check the school district. This is important if you have little ones or plan on having them in the future. After all, they’ll be going to school nearby. If they attend one of the better public schools in town, there may be more opportunities for them than if they attend one of the underperforming schools. However, it is important to note that these things change over time.

Also, check property taxes before buying a house or apartment building as an investment property. You don’t want something that will cost too much money each month because of taxes.

Look for a Well-Located Property

The location is key when you’re a real estate investor who’s looking for a property to invest in.

You want to ensure that the area has good access to public transport, shops, schools, and hospitals. Nightlife and entertainment are also important factors when choosing an investment property.

For example, if your family spends most of their time at home during the week but likes going out on weekends, then look for an area with lots of bars and restaurants nearby. That way, the family can go out together on Friday nights or Saturday afternoons. For example, the upcoming new condominium Grand Dunman development along Dunman Road in Singapore would be a good example of a well-located property with good investment potential.

Additionally, as a real estate investor it’s worth considering whether there are any parks or green spaces nearby. Perhaps your family likes to go jogging or play ball games with other families during their free time.

Finally—although this may seem obvious—you should try to look at properties that are close to central business districts where most businesses operate. For example, the Sydney central business district is a thriving area with good real estate investment potential.


Ensure the Condition of the Property Is up to Standard

Before investing, make sure that the property is in good condition. This means it has no structural or mechanical issues. Make sure it has no damage (such as water damage), safety hazards, or legal issues. As a smart real estate investor, you also want to check for maintenance issues like leaky roofs or broken windows. These may need immediate attention before they become costly problems.

Obtain structural and mechanical inspections to this end. A professional inspector should be able to identify any structural problems such as:

  • Cracks in walls or foundations
  • Leaks around windows and doors
  • Signs of termite infestation, which can destroy wooden structures
  • Poorly insulated pipes leading from faucets, showers, toilets, and so on
  • Electrical wiring problems

In addition, they will check whether heating and cooling systems are functioning properly. If you’re considering investing in an older home, there might be asbestos insulation. If so, you will need to hire someone who is qualified to remove it safely.

Inspect for any other damage. For example, look carefully at all visible surfaces, including floors and ceilings inside closets. One key thing to look for are holes caused by insects eating away at wood panels behind closet doors. Especially ensure that there is no visible damage in the living room where guests might it them when entering.

Also, any good real estate investor will check places where water leaks frequently occur, such as underneath sinks or washing machines. This can cause mold growth over time, which could affect residents’ health adversely after long periods of exposure.

Estimate Renovations and Repairs

Next, estimate how much it will cost to renovate the property. This provides an idea to you as a real estate investor how much you will have to spend on repairs. It also informs you about how much time it might take before the property is ready for renting or selling.

Consider Whether You Need Any Skills in Renovation

If this is your first investment property and/or you’re buying a fixer-upper, consider whether or not you have any skills that would help with renovations, such as painting or construction. If so, make sure your skills are up-to-date. This way, when it comes time for repairs and renovations, they won’t cost more than expected due to your lack of knowledge about what needs to be done.


One Last Thing for Any Real Estate Investor

Finally, ensure that the property you’re considering will provide you with what any successful real estate investor cares about most: money.