Today we have come up with the basic rules of successful investment in Real Estate that has to be obeyed over many years of successes and failures. Below are some of the same rules and we are sharing it with our clients.
In today’s time knowledge is the new currency. Without it you are dumb and will follow other people’s advice without knowing if it’s good or bad. Knowledge will also help to take you from being a “good” investor to becoming a great investor, and will help to provide a submissive stream of income for you and your family.
A goal is something unique from a wish; you may wish to be rich, but that doesn’t mean that it is your goal and you have taken steps towards it. Setting clear and particular investment goals becomes your road map and action plan to becoming financially self-sufficient. You are statistically likely to achieve financial independence by putting down particular and detailed goals.
Always invest with a long-term planning in mind. Never hypothesize on quick short-term gains in admiration, even in a low market experiencing double-digit gains. You never know when will be a market on peak and it’s usually takes 6 to 9 months after the fact when you find out. Only invest in wise value and always plays where the numbers make sense from the starting.
With few exceptions, always buy investment property with a positive cash-flow. Your cash-on-cash return is directly related to the tax cash-flow from your property. Your equity will grow over time, while the cash-flow covers the operating expenses and debt service.
Be a direct investor in the game of real estate. Never own real estate via funds, partnerships or other paper-based investments where you share other securities of an entity. You always want to be in control of your real estate investments. Don’t leave it upto fund managers.