ABC to invest in real estate

Owning a property should not be synonymous with receiving a monthly rent from your tenant. Real estate investments can generate great returns if you move away from traditional approaches, which are able to generate wealth, but are far from being highly profitable.

Money has to be in motion and evaluated against other investment alternatives, specialists recommend. The sale decision must be clear, there is no need to “get attached” to the assets and we have to reinvest.

A real estate must be measured against other financial instruments. If you are giving less than the bank, you sell it and you buy another that generates more.

Real estate investments must be seen as any financial action: It is just like with stocks you have to sell when they are up, because it is false that real estate never loses its value, just as in the stock market, there are also cycles in the real estate.

That’s why the secret is to rent and, when it reaches surplus value, to sell.

Here are 10 considerations to boost your real estate business:

  1. The best opportunities are not promoted in the media or traditional channels, they are in banks that seized debtors, portfolio managers, owners or real estate brokers who do not know the potential of their property.
  2. Sometimes it is advisable to hire a real estate broker with good information because you pay the commission of 5%.
  3. To get the most out of the investment, you have to know when to sell, according to experts, the properties are recycled every so often.
  4. Since you buy, set a price goal that you want to reach, so you’ll know when it’s time to sell.
  5. Try to find the property with the least possible intermediaries or previous buyers, since the profit of each one is an additional cost for the last client.
  6. In all the states of the Republic there are good opportunities. In cities with industrial development there are more properties, but in small places there is a more interesting offer because there are fewer buyers.
  7. Times of crisis are usually opportune moments to buy.
  8. If you do not have capital to buy you can enter real estate investments if you are interested in detecting interesting properties and charging commission to private clients or real estate brokers.
  9. Applying for a loan to buy a real estate and that is paid with the income is not a bad idea only if the corresponding financial runs are made, the required return rates are calculated and if the appropriate credit is chosen.
  10. To invest it is recommended to make a pre-contract of income and against this request a loan with real guarantee, which although it is more expensive than a mortgage, has the advantage that the loan is not given against the payment capacity of the applicant, but studying the cash flow of the investment.