Fundamentals of real estate investment When most people read about real estate gurus such as Donald Trump and many others they secretly wish they could be as successful as them but deep inside they wonder whether there really is a secret formula for success in real estate investment. While it is easy to assume that successful investors have a secret blue print they have kept only to themselves which is the reason why they rake millions of dollars every year, the truth of the matter is that there is no magic genie. You may safely say that there are certain golden rules or fundamentals that apply to real estate investment which when followed by a seasoned investor or even a greenhorn beginner, the y spell success and bring a good return on investment.
Do your homework well: In terms of financial meltdown you will often find thousands of offers as distressed people try everything they can in order to avoid outcomes such as foreclosure and maintain their financial stability. However, remember that any time you get a deal that seems to be too good to be true; there are chances that this may just be the case. Always double check so as to be sure that there are no big changes in store for the area such as developments like new highways, an upcoming industrial development or anything else that will affect you investment and dip your profits. Know why you are investing: People have different reasons why they enter the field of real estate investment such as looking for long term investments, properties that can be upgraded in order to make profits or perhaps one that will earn them a regular rental income. You may also want to try your hand on the commercial property market or the residential one whatever your desire may be. Your success in this volatile market will be determined by your good planning and structuring your investment portfolio by knowing what you want to look for. Calculate your risks: There is no doubt that in many cases you get great rewards as a result of having taken great risks. While that is true, it is also true that there is a lot of stress associated
with any high risk investment especially in real estate and this can help determine whether you finally make the right choices at the end of the day. If you are going to do any large investments, you must have the stomach to take the risks that are involved but if you really can’t handle the heat, you may want to rethink your suitability for this type of investment. However, you could also hang around but only deal with safer, low risk investments. Always play safe: There is the temptation to bite off more than you can chew especially when dealing with real estate investment. You must remember that there are areas in the market that are beyond your control and, as a result, you don’t want to overstretch your capabilities and resources. You must be able to cover your payments even when the market is down and you don’t have the rental income you expected to use in making those payments if you are entering the rental property market for example. About the author: This article has been written by Mohit Jain who has written various articles on real estate investment and real estate buying tips. He is currently writing for Ruchi Realty, a leading real estate company in India. The company has recently launched a new real estate Bhopal project - Ruchi Lifescapes which is Bhopal's biggest ever fully integrated township in Bhopal. The township has some of the better plots in Bhopal to offer to buyers.