8 IMPORTANT RULES FOR BEGINNERS OF REAL ESTATE INVESTMENT: It is very difficult, if not impossible, to get a real estate investment from newspapers or books. Analysing the online real estate advertisements every day or comparing your own investment with a near real estate will get you bored and make you want to run as fast as you can!
73 out of every 100 people who are considering investing, think that the process is intense and complicated, and they finally give up.
But; if you play according to the rules of the game, you will see it's simple.
Here are eight rules of the real estate investment game:
1. CHECK YOUR FINANCIAL STATUS
(This was not hard to guess, right?)
It's just as easy as making a declaration, and it's enough to work on your income and expenses. Your financial status determines the amount of cash you can allocate for real estate investment. If you are working in a business where you can provide a stable cash flow, or if you own this business, you will not have trouble getting credit.
2. CHECK YOUR CREDIT HISTORY
In your loan reference and your loan statement where your refunds and your income statement are compared, consecutive loan applications may be subject to a red flag - dangerous stamp on your registration status.
- Find out if you can get a loan,
- Check your credit score,
- Try to reduce your debt on your credit card.
3. DETERMINE YOUR GOALS
(I hear you say; Moneeeeey! Nope, this is not enough!)
Real estate investors often prefer this investment model to ensure their financial future. It is also aimed to reach financial saturation and obtain financial freedom.
One of the important points of real estate investment is to make sure your goals and put a time limit. If you do not set a time limit, you have a chance to work backwards and evaluate. Remember to stay calm and realistic!
As an example, a person with the intention of contributing to his retirement pension may set his/her 10-year loan payment as a time limit. In the meantime, it may create a 5-year, annual weekly income and expense plan. In this way, the cash that is determined for investment purposes has a chance to avoid expenditures to harm.
4. ACCEPT THAT EACH INVESTMENT CARRIES RISK
Your risk profile will determine your investment strategy. What intensity of risk can you take away? After you have discovered your position in the face of risks, your strategy will ensure that your investment will satisfy you.
5. START BUDGETING
Budgeting can be very annoying, but your income and expense is the only way to get your balance stabilized. In this way you can see how you spend your money and make plans for big expenses. You need to start budgeting before you search for real estate.
6. CREATE A PROCUREMENT PLAN
How will you create an ideal procurement plan?
An example of a procurement plan which you can use:
- Identify the strategy
- Explain your criteria
- Make a property search
- Do what you need in your research list
- Make an expertise
- Make the necessary comparisons
- Make an offer, start negotiating
7. GET INFORMATION
Use the tools you need to make decisions. The means by which you can make improvements in the real estate sector and compare prices are important for making the right investment decisions.
Being informed helps you avoid gossip and manipulation of the dynamics that are driving the buying and selling trends in the sector.
Make sure you concentrate. Real estate investment is a business decision, badly affected by emotional reactions.
- Clarify your purpose
- Set your time limit
- Identify milestones so you can make assessments, and you don't lose your concentration.
Investing in the stock market or in securities may attract you. But it is important to concentrate and focus on your investment in real estate without deviating from your aim.
Imagine power and wellbeing that you will have after 10 years. After 10 years, if your investment doubles itself, you will feel very happy and comfortable!
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