Many times real estate investing and development has been described as the new goldmine by real estate experts but those who are still very green in real estate investing or development still wondered why that is.
It might interest you to know that many if not all today’s billionaires have real estate as the rock or foundation of their wealth and financial success and am glad to let you understand without mincing words that It is a statement of fact that real estate is one of the safest, reliable, stable and viable investment anyone can use to grow and build wealth and financial stability.
However just like every other business or investment venture real estate has its own ups and downs, the good and the bad times but many inexperience investors fret about the bad time while the experienced investors make the most of it.
If you don’t know how to take advantage of periods the real estate market is experiencing a free fall in price due to the market determinants, introduction of new government policy or economic meltdown then you are still not maximizing the opportunity the real estate market presents and so vulnerable to losses and error in investment decision making.
This challenging period in the lifecycle of real estate investment usually has adverse impact on prices of real estate properties and most times the novice investors are the most hit by uncertainties of the real estate market while the expert put their wealth of experience into good use.
The seasoned investors have a large contact of real estate professionals and their ability to network properly with market experts and contractors to seek for information on market trends and updates in order to know where the market pendulum may swing to enable them make investment informed decision to prevent losses.
Besides adequately protecting your investment from possible free fall in real estate market price, it is important to understand that real estate investing is all about making investment decisions, planning and acting on those decisions but if one fails to act swiftly either to take advantage of an investment opportunity or protect an asset against a looming disaster then you are at a risk of losing money as well as corroding your investment plan and strategy.
This shows how serious this topic is to every investor especially those in real estate development and it brings me to the aim of writing this post which is to share with you how you can not only actively participate in real estate investing and development but also how you can win every time.
If you must always win every time in real estate I suggest you pay attention to what am about to share with you because I am sure it will open your mind to new ideas, techniques, concepts and ways of handling real estate deals especially some of the most complex and complicated real estate transaction.
This will not only increase your knowledge in real estate investing but it will also put you in a vantage position to make the best possible investment decisions like an expert because it will reflect in the way you practice and of course how you handle your real estate transactions.
One of the most crucial and critical aspect of real estate investing especially real estate development which involves handling building project is the ability to research and strategize to set the stage of a successful real estate adventure but you can’t achieve this without protecting your interest with a well thought out and articulated contract on such real estate adventure.
Many investors disregard this very important step to a successful real estate investing adventure and few who deemed it fit to have a contract agreement end up using their pen to grant express permission to other parties to the contract not only to violate the terms in the contract agreement but also exculpate them of any offence committed or breach of contract even before the contract is performed by writing the contract by themselves.
I am quite sure it is possible for anyone to write a contract or draft a supposedly good contract agreement but also am “surely sure” or double sure and certainly sure that not everyone knows or can tell of a good contract agreement and for this simple reason I advise its best to seek help from your attorney or solicitor when you need to prepare a contact.
I understand and know that a good real estate investing contract agreement must consist of some vitally important and essential elements, contingencies and mutually accepted proviso which all parties must agree with and am sure not many can do this without the help of an attorney knowledgeable in real estate and if this simple first step is wrong am sorry the entire real estate adventure is as good as heading to destination failure.
I guess many didn’t know what this could mean to their real estate investment because if they know this could make a big mess of their project perhaps they wont dare attempt to write contract by themselves and no matter how good you may think you are it is still not advisable to sign any agreement or contract without your attorney reviewing it.
This will help uncover and detect any loony aspect of the contract of the project if prepared by you or the other party, the attorney will ensure it has no legal implications and all responsibility and obligations of all parties are in confine of the law, If you feel like adding anything to the contract the attorney is in the position to guide you through that before you put your pen to paper prior to performing the contract.
After you must have finalized your contract with all the essentials that make for a good contract, which must include guarantee, punishment and penalty clauses for breach of contract by either party, then the next line of action is to adopt or develop an action plan on how to successfully go about your plans that may include a work breakdown structure, human, financial and material resources, workforce, scope of work, time schedule for the project and planning and budgeting .
Planning and budgeting will help you in making accurate estimate analysis of your project cost, helps to avoid misjudgment of estimates and also ensures you factored in certain project management hindrances not only to safe time, money and avoid overrages but also to make sure the project goes smooth and hitch free, to effectively do this, you must also put into the consideration the climatic condition of the period the project will be carried out.
Experienced real estate investors don’t entertain any sentiment when engaging a contractor to execute their real estate project, they engage only competent professionals, contractors and workforce with appreciable experience, equipment and resources to successfully handle their real estate project.
Besides having a good team of professionals and contractors to work with, experts also make plans for the unexpected from the start of their project by having an exist strategy which serves as bailout from the investment depending on the investing strategy.
Although there may be need for an investor to be flexible and creative with their investing ideas and strategies but it will be wise and best to stick with what you understand and try as much as possible to do away with hogwash ideas and outlandish plans and most importantly never dwell on false information make time to research your market.
The best you can do to help yourself grow in real estate investing is to invest in increasing your knowledge and skill-set, research and understand your project, market condition, the market price for material resources required to start and complete the project tasks and of course make sure you have a solid arrangement for funding and financing of the project.
The major reasons many fail in real estate investing and development is lack of funds and inability to source for funds, the art and skills of sourcing for funds and finance to carry out real estate project diffrentiate the big players from others and this happens to be one of the most vital or important skill you need and must master if you must be highly successful as an investor.
Experienced real estate investors are more successful because they are able to consistently fund their projects from start to finish even beyond the completion of their project. It’s worthy of note that a consistent funding arrangement will guarantee successful completion of projects as well as guide against not meeting up with schedule time frame to execute project task or deadlines.
They make plans for more funds than they require for their project to prevent project failure or non completion of project due to lack of adequate funding which ultimately will not only increase debt owed to mortgagees but also mess up the investment because of unexpected and unnecessary expenses and cost that may result in delays in project delivery.
Apparently, a well developed action plan and budget will definitely increase confidence and hope that a project will succeed therefore I need not belabour the need to make investment informed decisions on what you really want to achieve in real estate investing.
Then make a list of all human, material and financial resources to accomplish your goals and objectives, schedule and set deadlines to achieve your real estate goals, this will go a long way in ensuring you are focused on your investment goals.
If you must be a successful real estate investor, you must learn how to grow your contact list and your network, you must also and always be on the look out for reasonable investment opportunities and your target area and location should be communities where government beams its infrastructural project search light on to increase commercial activities and economic growth with public and private amenities to encourage businesses.
As an investor, your must have a great networking and negotiating skills because more often than not what you get from a real estate deal or contract are often based on your ability to negotiate properly to avoid all common pit-falls in real estate deals and contract, this could be the major determinant of what you can extract from or lock into a real estate deal.
It might also interest you to know that many real estate investors most times over pay in real estate deals, project, services, supplies and products due to lack of market research. It is very important to do your homework and be flexible enough to adapt to changes in the real estate market.
Lastly you must understand that how humongous a real estate transaction or deal is, the more complex and complicated it is and of course the more you are exposed or vulnerable to negotiation flaws which may leave you with greater losses .
Best of Luck!
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