Property Management Blog

Striking Your First Deal

Terry Mrochko - Tuesday, August 27, 2019
Property Management Blog

Real estate investment is a great business, for those who have discovered it will tell you how great it is and how much of profit you can gain from it. However, it’s not something that you can start overnight. Real estate business needs serious thinking. Once you have gained enough knowledge, you will feel that you are now good to take the leap. But how will you? How do you go from novice to pro? The real question is how long you should wait to make your first deal?

Many people have claimed that it took them two or three years to make the first move and buy their first property. Now, why did it take them this long because of it now something you do in a rush, you always have to think, ask around, research, and then make your move. It costs real money, substantial investments, and you can get stuck in a high risk that may never reap you any benefit. If it’s your first then this is uncharted area, one that you have never walked, it’s prudent that you tread carefully.

Learn and Apply

Those who think they know all are only fooling themselves. There is so much to learn when it comes to real estate, anyone who tells you otherwise is lying. You can end up in a deep ditch if you start real estate without any research and learning, you will eventually begin to succeed, but the cost will be too much. Take your time and study real estate as you would study any business.


Networking

Another great thing about real estate is that you have a lot of people like you and some experts as well who are always willing to help beginners. Start networking, attend seminars whenever you can. There are groups of REIA (real estate investor association). Find their local group and join that. Become a sponge and soak and retain all the knowledge. Once you are done with all, you will need an array of attorneys, accountants as well as contractors, who will be there to help you with all you need.

Understand the Market

One of the most significant steps is to learn about the market. Understanding real estate can’t be done unless you understand the market. Learn about the properties being sold; learn about their pricing and their profit or loss margin. The knowledge of the market will help you understand the value of any property; you will know instantly if it’s a good buy or not. Go to local real estate people, sit with them, and talk. You will learn a great deal about the local market through them.

Every area, city, and state has different market conditions, if you think that you have mastered your area and the market and you can apply the same strategies and knowledge to another city, you are wrong. Moving to another area means that you will need to learn all of it from the start; you will need to understand their market now. Keep both market and knowledge separate. This is how real estate works.

The learning curve of the real estate market is steep, as well as never-ending. You can never say that you know all.

As for the question, when to buy the first property, whenever you think you are ready. That is the right time to buy your first property. This isn’t a race; once you are prepared, you will know. Remember that jumping without prepare will not only hurt; it may even make you a cripple. Always leap when you know you have all the research in the world.

If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty. 

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