1. Develop rental properties in emerging neighborhoods

Rental properties represent a great way to get involved with real estate investments. Emerging neighborhoods offer growth potential and tax incentives for buyers. Buyers that purchase properties in emerging neighborhoods maximize profits and ensure that their income covers their costs.

2. Diversify your investments

It’s commonly preached that the best real estate investment is the one in your backyard. While there is merit to understanding the area in which you’re investing, we believe that you’re truly limiting your profitability potential by only considering a small geographic area.

By considering investments in other towns and counties you’ll have a large pool of available investments and ultimately better opportunities. Investing across a large geographical area also further diversifies your investments and protects your portfolio against the volatility of local markets.

3. Do your homework before listening to paid advisors

In many cases, your trusted and paid advisors (broker, wealth manager, tax accountant, etc.) may suggest you avoid real estate in your portfolio altogether. They generally give the same tired reasons that it’s ‘illiquid’ or ‘too management-intensive.’ Those can be valid arguments based on your specific situation, but that’s not the real reason they want you to avoid real estate.

You need to do your own homework to decide if the potential cash flow from real estate is right for you.

4. Leverage the experts

Investing in real estate has a lot of moving pieces. When you’re first starting off it is critical that you leverage experts and in this case Primeland Appraisal in each area of the project to ensure success and minimize mistakes.

Services we offer are a great option for investors since they’re a team of experts who have already conducted the due diligence on your behalf. We find that by keeping things simple, fewer mistakes are made and you become more profitable in the long run. There’s no point in reinventing the wheel when there is already a proven process available to you.

5. Treat your investments like a business

Real estate investing is a business and like every other business, it requires purposeful planning, execution, and management. The most successful businesses are run by high-quality people at every level of the organization.

Those that ignore this fact are destined to struggle or even fail. Regardless of how big or small you want to grow your real estate investing business, if you want to succeed then you must run it like a business.

6. If you can’t beat the price, beat the terms

Although the offer price of land or property is the first thing sellers look at, it is not the only thing. Terms are important. Often, someone else will offer more than you. If that’s the case, consider giving the seller favorable terms.

You can improve terms by using the seller’s escrow agent, reducing the inspection period, increasing the earnest money deposit, having a sooner closing date, and limiting appraisal and financing contingencies.