4 Truths about Real Estate investing is all about learning and gaining knowledge. However, experience counts more.
1 of the 4 Truths about Real Estate investing; As an investor, the more information we have before investing; the better we make informed decisions. This is a simple and general rule. However, having said that, it is not necessary to overload with information. Investment is all about risk but understand your market where you are trying to invest. You may need market study as well.
Money and Knowledge
If you have money, it doesn’t mean you are knowledgeable. An investor is an idiot and dumb when it comes to invest in a foreign soil. An investor would hire an experienced consultants for market study. Before even investing into the real estate, the investor spends money readying and understanding the market first. So, this tells you that you need to be proactive person. If you are an investor, you need to work on small things before you make an actual investment that can be realized.
Knowledge and Experience
In a technology driven world, the knowledge is easy to gather. However, it is all theory. One pass the theory exam, but when it comes to the actual field exam, almost everyone fails. Why is that so? Simply because there is no field experience. An experience consists of investor’s failures and successes. More failures means a step towards successes. An investor learns by mistakes. Don’t just start purchasing homes and apartment. You really need to know what’s included. For example; an apartment may need renovation. However, it depends on what kind of renovation it requires and how much money can you invest to attract buyers. There is really no hard and fix rule. An inside tip is that you get real information from labours. So, sit with them and communicate and exchange information. You will be surprised the information you will get.
Experience and Perfection
So, you got the theory experience and the field experience of more than ten or twenty years. Now what? Are you perfect? No, you are not. Nothing is 100%. You have memorized this statement. If you think you made the 100% correct choice; maybe it the right decision at that specific moment; but the vision changes after few years. Then, what will you do? The real estate investment requires long term investment and we are talking about more than ten years. You have to lock your investment for a minimum of ten years. One mistake after fifty years of experience would land you in financial troubles. For example, you really like to invest in a property and you start the project. Later down the road you found out that someone has stay order from the court for the project because your project is causing an issue to nearby residents. This means, your project manager didn’t consider the surroundings.
It is important to have capital, but at the same time you need knowledge and if you are a risk taker then you will have an educated experience and try to invest in a perfect property.