4 Evergreen Tips to Succeed in Real Estate Investing, Even in a Downturning Market
Real estate investing is a dynamic industry that requires one to keep up with the macro and micro market conditions.
However, it is vital to understand that regardless of the market situation, certain strategies, principles, and tools can guarantee your success. In this blog post, we will focus on four creative tips to improve your real estate investing business.
The first tip is to expand your networking opportunities beyond agents and investors. Networking is essential in real estate investing as it connects you to people who can fund your deals or partner with you on a project. However, most investors limit their networking to agents and investors, forgetting other professionals that play a crucial role in the buying and selling process, such as title companies, contractors, and loan officers. By connecting with these professionals, you can benefit from mutually beneficial relationships that can lead to more deals and more business.
The second tip is to factor vacancy rates into your overhead. Vacancies are part of managing rental properties, and how you handle them can significantly impact your bottom line. The best approach is to set aside funds for vacancies, which allows you to market the property, get an inspection done, and have the unit cleaned without affecting your bottom line for that month. The conventional wisdom is to set aside 10% of your gross monthly rent for vacancies, but you should figure out what number works best for you depending on your market and the type of properties you rent.
The third tip is to find a property management company that matches your style. A property management company can save you time and your sanity, especially if you are new to real estate investing. However, not every property management business operates the same way, and you need to find one that meshes well with your style. You should take some time to learn what to look for in a property manager before trying a few out.
The fourth and final tip is to screen tenants fully and don't be afraid to turn someone down. A better tenant will save you an immense amount of time and money over the course of a lease. Thus, you should be pickier than usual when selecting tenants, especially in markets that allow you to do so. You should run full background checks, including eviction history, income insights, and credit reports, to have a fuller picture of whether the applicant is a good fit.
In conclusion, these tips are essential for real estate investors to succeed regardless of the market situation. By expanding your network beyond agents and investors, factoring in vacancy rates, finding a property management company that matches your style, and screening tenants fully, you can maximize your profits, reduce stress and energy spent managing your rentals, save time, and anticipate issues or roadblocks by preparing in advance.
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C&C Monterey PM Inc. DRE 01526734
Kyle Chernetsky DRE 01928366
Kevin Cesario DRE 01953086
