Investing in real estate has become a quickly growing opportunity for individuals to pad their wallets or create fledgling businesses from the ground up. To give you an idea of what to expect if you’re thinking of starting your own real estate business, let’s go over the best way you could create additional income through Miami real estate.
Make a Plan
Before pursuing the listings or putting in offers, you need to take a step back and determine what your short- and long-term goals are.
Would you rather purchase properties to carefully restore them and sell them for a profit, or would you prefer purchasing a property with the intent of renting it for a more long-term project? Figuring out how you want to operate before doing anything else will help point you in the right direction for the rest of your pursuits.
Be realistic in setting any goals and remember that it could take a while to see any substantial income from the money and time you’re investing into your properties.
Do Your Research
Once you have an idea of what you’re wanting to do with any property you acquire, it’s time to get to know the Miami real estate market.
This means picking an area and looking through the general size and features of properties in that area. Note the most recent closing prices they commanded if they sold within the last five years.
The data you’re collecting here is typically referred to in the industry as a neighborhood comparable, or neighborhood comp. You can use this data to help analyze the asking prices of properties for sale in that same area and then pick which ones to pursue, and how aggressively to pursue them.
Some people think that investing in real estate is all about speed, but starting out you’re looking for the right conditions to exist that either present the perfect opportunity or can be shaped to your advantage.
Keep your eyes on the local listings, build a network of real estate professionals that can help you out, and be thorough when investigating a property that you feel could be your first or next featured property. Possibly the biggest mistake new investors make is a rush to find a property coupled with an over-eagerness to throw money around in negotiations just to close and get things moving.
Be patient and calculated, and don’t let your excitement get the best of you.
Build a Team
Going back to your goals, you may find yourself needing to find other individuals to assist you once your business scales up.
If you’re in a situation where you can’t keep up with the day-to-day responsibilities and are therefore leaving money on the table, bringing in other professionals to cover specific sectors of the business could be invaluable.
First and foremost, finding an agent that is used to working with landlords or investors is key. They have the local market knowledge to find the best available Miami real estate that aligns with your business model. Depending on your expertise you may find employing the services of an accountant, real estate lawyer, or a general contractor to be extremely advantageous.
If you’re just starting out, this is something to keep in mind for later on down the road.
Skipping forward to owning or selling your first property, it’s time to put your plan of selling or renting into action and then using those proceeds to fuel further growth.
For instance, be prepared to set aside some finances for the inevitable issues and repairs that will come up from a rental property. On the other hand, if you have decided to be a flipper or short-term investor, keeping profits from your first home sale available to your business to invest in your next property is a logical conclusion.
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If you’re looking to buy or sell Miami real estate, contact our team at 706.870.1496!