If you’ve ever thought about becoming your own boss, becoming a real-estate investors apprentice is one of the best things you can do if you ever plan on getting into the business of real estate investing. The bottom line is that 80 percent of millionaires made their wealth in Real Estate according to a survey in 2014.
So real estate is definitely the business to be in if you ever plan on making some serious money. However, don’t imagine that it’s going to be easy. This is a business that needs to be handled and managed professionally. And to find the success you want, you’ll have to start thinking as a serious business owner intent on being successful.
We’ll start with the cons of this area, as this is what people usually fear:
When you decide to buy a real estate property for investing, you might finish the papers in time and want to quickly move to your next property. One of the things that people often find out is that their property needs a lot of repairs. This can be extremely expensive, and if it is not done right and the comparables aren’t worked out correctly you could potentially lose money if you invest more into the house than it’s worth.
For example, you may run into a client where they needed to sell their property in a hurry but are unable to do so due to the extensive repairs required. Your job as the investor is to be able to provide them a service where you’re able to cover all of these costs so they will be more likely to sell it to you since they won’t have to hire a real estate agent. Your job however is to determine whether or not the property is going to net you a profit on resale or for rental purposes. If not, you will lose money.
You may have to fix the pipes, the water supply, the AC units and so on. For all this, you will need to call for a professional property management company, as it’s hard to take care of all this yourself. However, this is a price that you’ll have to pay no matter if you have one property rented or the lot of them, so make sure you have enough money for this.
It may be some time before you’ll feel the cash-flow, so be prepared to sustain your investment from your own pocket if you don’t have financial backing from investors. Consider that you’ll have to pay the mortgage – if you’ve taken a loan, along with the rest of the bills – for proper management, water, and electricity and so on.
The advantage of this kind of business is that there will always be people in need of a place to live. There are students, young people and even older people who prefer to pay rent than to buy their own house. The motives can be different, but the truth is that they are all looking for a place to call their own at least for a certain period of time, short or long.
You could be making a lot of money if you have everything set up in your property. This means that there has to be no problems with the water supply, with the electricity or with any other facility that you are offering.
If you have someone who takes care of the property management – making small repairs, paying the bills, collecting the rent or even finding people to live there, then your job will be much easier.
With a nice property, you could afford to pay for all of your expenses and even have some money available to use for yourself. It’s important to have a constant cash-flow, but you’ll have to maintain the building and pay for every repair or maintenance project that comes up.
The initial investment will be covered soon, if you offer a quality space for people to rent. As was said before, nobody wants to live in a bad place, so your services will be highly appreciated if you do for your tenants more than others do. This will also allow you to ask for a bigger rent, increasing your income.
Some companies like SCHB have mastered the real estate investment business and provide a wonderful service their clients in California absolutely love. They have learned to balance business with compassion and understanding from people in need.
If this is the type of business you would like to venture into, then being able to harness these skills is essential for success. One of their primary locales in California is Southern california. And they operate heavily by purchasing homes in los angeles fast for cash from people in need.