A few steps to successful real estate investment in times of crisis

5 steps to a successful real estate investment start. Even in a crisis

2023-09-05 15:43:00

Today, yields of 40-60% per annum on real estate are impossible. With real annual inflation under 30%, your capital will depreciate in 3 years. To be fair, today's investment should allow you to “get poorer more slowly than others.” What does it mean? — It is necessary to look for returns at or slightly above inflation in order to preserve capital.

Everyone always starts somewhere, and if you have already set foot on the path of creating passive income and preserving capital, then sooner or later your feet will lead you to the road called “investing in real estate.”

The classic market (for example, a fashionable topic – buying and reselling new buildings) will not allow you to earn anything, since prices are worth it. Investors entering at the start of the project and in fact being co-developers earn at the level of 35% profitability! And of course it is very important in which project, about this next post.

It seems that they are constantly talking about it, it seems that more than half of the world's money is in real estate, and in general investing in houses / apartments / office premises / plots is almost necessary for a wealthy person.

And then the question arises: where to start?

That is why we have prepared 5 steps for you to successfully start investing in real estate.

Step 1. Determination of the starting position

Yes, everything is quite simple here: you need to understand what resources you have. Including temporary ones. Real estate is a capital-intensive business, and even at the beginning of the journey, the phrase “the more, the better” will be appropriate. Naturally, only on condition that the funds are invested wisely.

Step 2. Goal setting

What kind of income do you want to create? Or maybe you want to earn the Nth amount by buying and selling? Or is your main goal – the preservation of capital? A novice investor needs to answer these questions for himself.

Step 3. Choosing a strategy

A step that most naturally forms from the previous two. After point A and point B are determined, it is necessary to understand which way out of all possibles we will go there. You can learn about the types of real estate investments from the article in our profile, but in short, the options are as follows: - Purchase of a plot / premises for rent. — Purchase of a plot / premises for subsequent resale. The premises are divided into residential and commercial, and there are a lot of options for how to make money. But, again, more about this in the article.

Step 4. Market research

Everything is like in business: before investing money in something, you need to understand how things are on the market: find out the dynamics of demand, prices, the pitfalls of a particular market, the subtleties of documentation, and in general everything that is necessary to understand the situation. This is especially true in turbulent times like now.

Step 5. Implementation

And now we act on the basis of the chosen strategy and the state of affairs in the market. First, of course, we buy objects. The selection of real estate is a separate topic, on which, by the way, we also have a separate article. You can also find it in your profile.

Now the question is especially acute: “Is it worth it to go into real estate in a crisis?”, And the answer is simple: it is worth it. But very, very carefully. If a person does not have any experience in real estate, then it is best to do this with an experienced person in this matter.

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Damian

Damian

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I have been trading Forex for more than 5 years, mostly with manual and automatic trading. I set up advisors for round-the-clock automated trading. I'm sure I can help to establish your trading skills....

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