ABC of real estate investing
Welcome
to year 2013. I believe this is a good time for you to strategise on
how to make it in real estate. It is a fact that real estate is one of
the safest and surest ways to invest and make money. This year has come
with its varied opportunities in real estate investment but you need to
understand the basics. Let me be your guide.
The first and most basic principle is to
have a specific and attainable goal. Someone said that “a goal is
nothing more than a dream without a time limit.” You need to decide now
what you seek to accomplish in this area of your life. Here is a
hypothetical goal: “I will invest in real estate by constructing four
three bedroom flats with all rooms en suite, on my land situated at XYZ
area within the next 12 months. The building should generate at least
NXYZ annually, which will form part of my retirement plan.” This goal is
very clear and attainable.
Once you have done this, you can proceed
to lay out plans and set milestones that will enable you to measure
accurately what you have achieved per time. You can establish time lines
on what should be done and when. Important mile stones could include
clearing, foundation, blocks and so on. Secondly, you need a team. You
need certain people to succeed in this area. You need professionals such
as accountants, estate surveyors and valuers, as well as legal
practitioners among others. An expert team will help you navigate though
the hurdles of purchasing or leasing or building a property. Of course,
this is not going to be free but the savings in real terms are
significant. You may also consider forming a formal or informal
partnership with likeminded people on real estate investment as a form
of strategic leverage.
If you choose to have partners, you
should ensure that they are people of integrity who have shared values
and are totally committed to the success of the venture. Your partners
and team members must agree on how you’ll operate the partnership as
well as an accountability structure. Your team and partners will provide
a ready pool of expertise and resources that should help you achieve
your goals.
Thirdly, improve your knowledge .You
need to know more about real estate investment and you can achieve this
through attending seminars, reading related articles in the newspapers,
and reading books on the subject. Your knowledge will enhance the
quality of your decision making ability. It has been said that ‘to earn
more, you need to learn more.’ If you desire to make more money in this
area you have to learn new ideas, information and skills that you can
apply. You can dramatically increase the odds in your favour if you work
from a position of knowledge.
Fourthly, get your financial house in
order. For several people, investing in real estate impacts
significantly on their finances. Thus, you need to examine your
financial situation and get rid of stumbling blocks to your success in
real estate. You may need to deal with certain attitudes and tendencies
that are negative. Remember, when you invest in real estate you are
investing in a future that will reward you bountifully. Unfortunately
some miss this opportunity.
During one of my discussions with a real
estate millionaire, he shared with me the true story of two brothers.
One was a successful businessman controlling millions several years ago
and the other was a struggling businessman with knowledge of real estate
investment. The one doing well in business was given to wasteful
habits, such as, staying in expensive hotels while on holidays in
Britain without buying any property there even though he could afford to
pay outright. In Nigeria, he bought few properties and wasted a lot of
money on high life. Whilst doing all this, the other brother was
investing in real estate. As at today, the tide has turned. The real
estate investor is now several millions richer than his brother. The
sacrifice of several years is now paying huge dividends.
Finally, focus on a specific area or a
particular line of real estate investment. This year, determine the
location that suits your goal and begin to focus on that area until you
get what you want. Learn from the banks and eateries whose success
depends a lot on location. They start by setting a goal of where they
need to expand and how much they need to expand within a year. Once the
strategic locations have been agreed, they focus on that area or
neighbourhood until they achieve their result. Don’t just invest, rather
invest strategically. Determine what you want and go for it. Fortune
favours the bold.
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