Whether you are just starting out on your journey of long-term investing or you have been doing it for a while, it is important to understand that there are certain principles that have already been tried and tested by the investors before you, and if you can follow their formulas, it will lead you to master long-term investing. Victor Vickery being a pioneer in the industry mentions a variety of ways that can help you grow in real estate for the long-term. Expert guidance has always resulted in fewer failures as everything is carried out with proper plans and strategies. Although being a lucrative way, real estate also requires a tremendous amount of time, patience, and, most importantly, resources.
Ways to get into successful real estate investments
- First have your finances build: Have the rest of your financial house in order before jumping into some form of real estate investment. Create an emergency fund, pay off consumer debt, and automate your retirement savings. Real estate is an especially costly investment, so for a down payment and a budget to tap into if and when anything needs fixing, you need to have cash on hand, which should be totally separate from your everyday emergency fund.
- Have a good knowledge about the local market: Start by getting to know the local market if you intend to purchase your own investment property, or better yet, remain in your own neighbourhood. Speak to real estate agents and locals; find out who lives in the city, who is coming to the region, and why; and examine the past rates. It is important to have a brief knowledge about the whole market.
- Investment in REIT: Investing in a real estate investment trust (REIT) will provide exposure to the market without the time and cost of buying your own property if
you want to dabble into real estates. A specific type of real estate, such as apartment complexes, hospitals, hotels, or malls, is the focus of a REIT. Ninety percent of annual earnings are returned as dividends to investors, usually in the form of rental income. Stick to publicly-traded REITs if you want to keep your investments liquid.
- Keep it easy: A simple and easy-going strategy will always help to remain in the market for a longer period of time. Thinking of investing in a big project to stay in the market is a wrong notion. A well-established real estate entrepreneur Victor Vickery says that it is always best to start with small and keep your expenses low.
- Try ‘House-hacking’: House Hacking is a technique involving renting out parts of your primary residence to raise revenue that is used to cover the expense of your mortgage and other costs associated with owning a home. Once you are over with these expenses you can save money and move on to the next investment deal.
- Buy and rent out single-family home: Renting out a single-family home will give you a fixed amount every month through the tenants and you can also increase the pocket while the prices rise. You can also shop online for rental properties via a website like Roof stock, which allows vendors of empty homes prepared for tenants to list their properties, facilitates the purchasing process, and assigns the new buyer to a property manager.
While looking for interesting real estate deals Victor Vickery can help you with the above-mentioned ways because of his expertise in the field. Letting you crack a deal for the best possible outcome real estate can become a great way to generate income in the long run.