Becoming a good real estate investor is as much about waiting for the right pitch as it is about taking risk. All investing involves an element of risk but intelligent investors understand when it’s the right time to swing.
If you’re going to see a return on investment the property first needs to be in a good location. Location is everything and choosing wrongly could put you in a position where you’re losing money instead of adding to your net worth.
Next, you need to acquire it for the right price. If you’re an investor, generally speaking, buying a property for retail does not help your cause. There are times when it makes perfect sense to pay retail but the location and the rising trend of the market should clearly warrant the risk. But usually an investor is better off getting a discount.
Lastly, you need to keep your cost down. Remember, you’re going to have a down payment, closing cost, and you’re typically going to have some type of repair and value adding work you need to do to bring the property to market. The higher your cost on the front end the more you’re going to need to try and make it up on the back end.
If you can commit to doing these three things not only will you see your money grow but you’ll also sleep a lot better at night.