Real Estate remains one of the most proficient ways you can earn passive income in 2020; however, as with any business, real estate comes with its quirks and risks. Today, we invited Winston Deloney, a foremost real estate investor and entrepreneur, to reveal a few secrets for new investors.
Winston Deloney, it is a pleasure having you here. What’s the risk level of investing in real estate?
Real estate is a market every serious investor should consider putting their money into. With real estate investments, you can earn passive income that will make you money while you are asleep; however, real estate is not as simple as many people may make it to be.
Let’s take an investor who decides to flip a property. If he does not renovate and resell the property within the right time frame, he will have a piece of property accruing expenses on his hands. If he manages to sell, eventually, his profit would have been reduced—or non-existent.
The risk level with real estate differs from transaction to transaction or from one deal to another.
Can anyone Invest in Real Estate?
Yes, anyone can invest in real estate; however, not every real estate investment yields good profits. Some may even become problematic and lead to a terrible loss.
If you are a beginner just venturing into real estate, you must study the general market and the market within which you plan to purchase your first property.
Achieving real estate success depends on the knowledge you expose yourself to. Most people imbibe wrong information, go into the market with such false information, invest, and inevitably lose tons of money.
Anyone can invest in real estate; but it takes a thorough knowledge of the market and the niche you are investing. Whether you decide to venture into wholesaling or become a landlord, there are certain things you need to consider.
Can you give a few hot tips for new investors?
First, do not invest in a property without making a thorough research on the property. Properties are like businesses: there’s always more than meets the eye; therefore, you need to be smart.
Before buying a piece of property, ask questions. Jog around the neighbourhood a couple of times in a week; talk to houses beside the house you want to purchase; get a feel of the type of people that stay in the neighbourhood, talk to professionals like your attorney and your property valuator before making a buying decision.
Second, determine if you want to buy and hold a property or buy and sell. There are different strategies for making money in real estate. One of such strategy is the house flipping strategy.
If you decide to flip a property, you will buy the property at a relatively low price, renovate, and then resell at a high price. This model will help you make a good Return on Investment (ROI) within a short time frame.
Third, study the market. No tip can be hotter than ‘Study the Market.’
The market can change due to certain occurrences or trends. A real estate investor should be able to pick out opportunities from these changes and make a good profit.
Can a Person Become a Millionaire through Real Estate Investment?
Absolutely! You can become a millionaire from real estate investment. It’s one of the reasons why I stuck with real estate investing in the first place.
But it’s important to remember that there is no business without some form of risk; however, if you can study the market and hone your vision, you will be on your way to earning top-dollar.