HOW TO SECURE YOUR INVESTMENT IN REAL ESTATE?
1 . CONDUCT RESEARCH : Conduct research about real estate market ,property location ,property trends ,rental demands, infrastructure development and capital appreciation before embarking on any investment decision to know if it worth it or not.
2. DIVERSIFY YOUR INVESTMENT PORTFOLIO : By doing so ,you won’t be chocked at tight corner by one investment option ,consider diversify your real estate investment across spectrum of different types of properties or location to spread risk.
3. DUE DILIGENCE : This analysis is vital and one of the most important factor to secure your investment by conducting physical inspection ,checking property historical background ,evaluation of the neighborhood and reviewing relevant documents and the company/individual selling the property.
4. FINANCIAL PLANNING : This highlight fundamental principle of securing investment by conducting metrics and calculation as it involves money and budgeting without burning your fingers or getting into financial trouble .Some of the gray areas that need to put into consideration and address are : Installment payment ,mortgage payment ,property taxes ,insurance, maintenance cost, utility cost and logistics, vacancy period, surveying cost and cost of property evaluation.
5. SECURE FINANCING : Different financing options are up for grab but by choosing the right one that suit your investment goal put you ahead and guaranteed your safety. Compare mortgage rates, loan terms and their criteria that is flexible and convenient for you.
6. REGULAR MAINTENANCE : This will astronomically increase your property value ,it will attracts property hunters either to buy or lease for a period of time for quick return on investment.
7. SECURE ADEQUATE INSURANCE : As an adage says : ” Prevention is better than cure” This will protect your investment or asset against unforeseen circumstances or pending danger that might rear its ugly head in your investment journey which include liability insurance, property insurance even loss of income insurance for rental properties to mitigate risks.
8. TENANT SCREENING : Apply caution in admitting or approving tenant, conduct proper background check of any prospective tenants through profiling and paperwork to avoid terrible tenant experience by doing so, you will know tenant who can renew subsequent rent without stress and those that can maintain your property without incur damage or constituting nuisance that can jeopardize peace being enjoy in order not to damage your hard earned reputation.
9. STAY UPDATED ON MARKET TRENDS: Regular information is the key factor about real estate market trends ,government policies and regulations ,economic policies, climate change that may trigger your investment decision.
10. ENGAGE PROFESSIONAL ADVICE : Consult with real estate experts, financial advisors, property managers ,professional real estate consultants for insights on investment decision in order not to become victim.
11. LEGAL PROTECTION : Employ the service of certified legal practitioner or attorney in all property documentation and title verification from drafting contract of sales, deed of assignments paperwork, tenancy agreement ,lease agreement ,memorandum of understanding ,power of attorney documentation and other property legal matters to avoid being scammed by fraudulent elements in the industry.
12. PLAN FOR CONTINGENCY : Exercise financial discipline for unbudgeted expenditure that might occur such as repairs and maintenance, inflation in procurement of building materials ,legal fee in drafting quit notice for tenant eviction and period of vacancy.
13. MONITOR AND REVIEW YOUR INVESTMENT : Frequent review the performance of your investment is crucial for your investment growth, analysis expenses, rental income and latest industry market trend to take appropriate step about your real estate investment portfolio.
