Before you make an investment in real estate, an investor needs to educate himself on exactly how much this investment will cost, and then set clear parameters for living within those financial boundaries.
Remember, these aren’t merely target numbers. If your entire budget is eaten up with construction costs, where will the money come from to market and advertise the finished product?
What happens if the construction isn’t completed in time to recoup your money?(The answer: You lose.) Experienced investors think about these things long before they make a purchase, and are rarely caught off guard when they experience delays. Seasoned investors already have a crew in place to make sure construction is finished in a timely manner, and have priced out the material, to avoid unexpected delays.
Budgeting all these factors prior to investing is smart business. Set parameters for yourself, because any upset to the hard bottom line will impact your return on investment. Your financial outlook must take into account the harsh realities.
Researching the market and gathering information shows that a buyer, seller, or agent is serious. Knowing facts like neighborhood comparisons, future development plans, school data, and even the distance to employment centers are things that decision-makers need to know.
This attitude should also influence lending choices and agent selection. “Experienced” doesn’t always mean “good”when it comes to individual real estate agents,and skills and communication styles vary. Do the research and select the agent that will work best for,and with,you.
New homes buyers require a lot of time and patience from their agent, because it’s their first in a long process of educating themselves in making a home purchase. This requires an agent with the time and resources needed to answer all their questions, and help them through the hurdles of making an offer and securing lending.
Seasoned agents with many listings and a large client list don’t necessarily have the time to give the care required for this particular clientele. This is another area where relationships and referrals can be an excellent resource.
Lastly, remember timing. It’s difficult to say exactly when a buyer or seller should decide to make a move, but I know one thing for sure: When the time is right, you will know it if you have built relationships built on trust, done all the necessary follow up, and made choices based on factual research.
Making decisions in this business isn’t easy, but if you take these points into account, you will feel secure regardless of market conditions.
Over many years in the real estate business, I have watched developers win big and lose big, witnessed the tragedy of families losing their homes to foreclosure, and experienced the joy when a family purchased a first home, one that fit their needs and benefited their lives. This only happens when you make informed decisions the right way.
Merrick Damon Williams
MerrickDamon Residential Brokerage
Georgia, Florida, Costa Rica