There’s a chance you’re rolling your eyes at the idea that anything is better than getting rich quick. After all, the sorts of schemes that make those promises have duped millions for years. They’re irresistible because they promise fortune without effort. The bad news is that they never work. Whether they’re secretly riddled with risk, run by dreamers wearing rose-colored goggles, or nefarious pyramid schemes, getting rich quick is never what it’s cracked up to be.
We’ve all heard the saying “the devil’s in the details.” Less common but no less true is the counter, “God is in the details.” It’s the idea that paying attention to small things has big rewards! The details matter, and it’s no less true when it comes to real estate investment.
Topics: investment strategies
With the rush of foreclosed homes on the market in the past few years, investors were jumping into the business from every direction. Here in Memphis, the investment real estate market was booming due to the rush of foreclosures and most were caused by a slowing economy and not necessarily an over-heated housing market. That created a scenario where not only were houses available, but renters were in abundance as well.
As the real estate market is now recovering, easy buys on bank-owned homes are becoming more scarce. Some investors are opting out of real estate because properties aren’t as easy to acquire. As serious investors knows, the real estate market will continue to change constantly over time.
There’s a gleam in the big city that attracts investors. In a lot of ways, they’re attractive. Living in New York City is a dream for some people, as is settling down in big gleaming West Coast metropolises like Los Angeles and San Francisco. Memphis, while it is a big city, is nothing compared to Dallas and Houston in terms or the size of the city. Memphis is small city real estate and investors sometimes don't recognize it as a gem!
These big cities get most of the attention from investors and truth be told, you can go anywhere in the world and mention these cities and people know exactly where you are talking about. Ask them about small and medium cities and the chances of people knowing about them get slim. Real estate investing is about more than the name and size of the city.
Raising rent. Depending on the market, it may become necessary for real estate investors to make adjustments to their rent prices, both up and down. It’s a tricky, temperamental balancing act that all investors face at one point or another.
Set your rent too low beneath the market and you may find yourself with tenants you’d rather not have...and run into trouble keeping up with the mounting costs of running an investment property. If you set prices too high, you’ll find yourself with high tenant turnover as a lowered demand for your property.How can real estate investors best navigate making changes to rent? There are few things you should consider to make the best investment strategy.
Topics: investment strategies
As a real estate investor, standards are important. If you don’t know what your personal standards are for any given property or tenant, you may wind up with an investment that is more work than it’s worth. While we all have to maintain some degree of flexibility when it comes to our investments — after all, no property or person will ever meet your visions of perfection — there’s a time and place to draw a line in the sand and back away. You’ll save yourself a lot of money, stress and grief if you know what your real estate investment deal breakers are before you spring for that purchasing that property.