Target House-selling Criteria For New Investors
As the saying goes, it’s never smart to put all your eggs in one basket, and the smart investor would always look to other places that can generate profit like a successful tech startup, investing in indexes, understanding cryptocurrency, and many other financial instruments. Of course, there’s no denying that it can be a hassle to manage all of these at the same time, but we also can’t deny that grasping all facets of the market gives you an edge as well.
So, today we’ll be going over the real estate market and why small and medium business owners should look into investing in housing and properties. Specifically, we’ll be going over the target house-selling criteria to help newbie investors find the perfect properties to purchase and sell in under three weeks.
My Business Is Doing Fine, So Why Do Real Estate?
Of course, we wouldn’t blame you for being skeptical. If your business is doing fine as it is and steadily growing despite the adverse effects of the pandemic, it’s only natural to think that you’d stimulate and continue to reinvest capital back into your business. However, there are distinct benefits to owning real estate, features that you won’t necessarily get to enjoy with a business alone.
- Diversification And Appreciation Of Investments: Firstly, buying properties and owning real estate investments is one of the most accessible ways to diversify your investment portfolio. Furthermore, these tangible assets also appreciate over time. So, unlike your business that is bounded by performance, homes typically increase in value regardless of what you do.
- Passive Rental Income: Secondly, there’s no telling when we’ll face another economic event that causes instability in the market, and just because your business survived now won’t mean it will have the same fortune later. With real estate investments, you can create more revenue streams through a passive rental income and even house-flipping, which can net you extra money in case something were to happen.
So, What Should I Look Out For?
Lucky for us, creating a target house-selling criteria is fairly simple and doesn’t require as much technical knowledge as you’d expect. Of course, you could get by much easier if you had the help of a real estate agent or expert, but a lot of the analytical tools used in business still translate into the real estate market.
#1 Focus On A Neighborhood Close By
While there’s merit in penetrating new markets, we strongly recommend focusing on neighborhoods that are nearby and in proximity. The last thing you want to happen is the off-chance of overlooking something important and having to go out of your way just to get to the property. Sure, later on in your investment strategy, it’s perfectly fine to expand your horizon, but starting out must also start somewhere close to home.
- Accessible And Easier To Manage: Fixing up a property to sell or rent out can go by as quickly as a couple of weeks or last upwards of a couple of months, depending on how long it will take to make the place liveable and get the right price. So, you’ll want to be close by so that it’s more accessible and easier to manage.
- Strong Grasp On Local Housing Market: Choosing a local neighborhood also gives you the advantage of a strong grasp on the local housing market. You know the lay of the land and can easily compare how well the property stands in comparison to others. Plus, you can isolate your search on house-selling apps to that specific area.
#2 Sales Activity In The Area
Just like how you would analyze the saleability of a product by its sales performance and engagement numbers, you will also want to be critical of the sales activity in the area. Poor sales performance and sale signs that have been put up for quite a long time mean that the neighborhood isn’t as desirable as it would seem. So, stick to neighborhoods that indicate otherwise.
- Comparing Selling Price: In terms of sales activity, another important factor consider is the selling price of homes. Low-end and more affordable homes are much easier to find and sell, but you run into the difficulty of turning in a profit at times. On the opposite end, high-end and luxury homes have great appeal but require a substantial amount of cash as a downpayment. So, we recommend sticking to the median price where most people will buy.
#3 Overall Appeal Of The Home
Last but not least, you want to gauge the overall appeal of the home, considering all aspects such as comfort, aesthetics, and everything that a homebuyer would think important. For example, a home that’s reminiscent of Mediterranean architecture is sure to catch more eyes than ones that are more plain-looking. So, look for homes that offer a distinct advantage or unique touch.
Expand And Grow Your Personal Portfolio
As a business owner, you should know firsthand the importance of positive cash flow and how your personal portfolio directly ties in with earning potential. So, expand and grow toward real estate investments, and let the streams of income do the talking.