7 Ways To Become a Profitable Property Owner
If you make smart and informed decisions when investing in property, you can develop a very lucrative business. Based on my many years of real estate experience, I’ve put together some tips to help you build a property empire.
1. Choose condos over houses
As a property investor, you may have heard this before. Smaller properties, such as condos or flats, tend to generate a higher return than houses. If you have enough room in your budget, buying a 2 bedroom, 2 bathroom condo can prove to be advantageous. This type of property appeals to a larger range of tenants, improving the chances of higher occupancy rates.
2. Be patient before buying
Investing in real estate is a long term investment. As such, it’s important to be patient before committing to the purchase of a property. It’s wise to weigh the pros and cons of each property that you are considering. Remember, making money from your investment properties can take time. So, prepare yourself for the long haul. And don’t overextend yourself financially.
3. Add value to your property
Renting your property becomes a whole lot easier with an upgraded home. Making renovations and improvements to the bathroom and kitchen, for instance, can equal higher rents. Moreover, adding value to your property is one of the easiest ways to improve your return when you’re ready to sell.
4. Learn about the tax advantages
Consult with a tax advisor or CPA when you purchase a rental property. They can explain the various ways to minimize the tax you pay on rental income. Also, there are certain tax advantages an experienced professional can teach you.
5. Diversify your investments
As with any investment, some of the best advice you can get is to diversity your investment portfolio. Diversification helps to spread the risk across investments. In the case of buying real estate, a smart strategy includes buying different types of properties in different areas.
6. Buy local real estate
Being an expert in a particular city is a helpful advantage. If you’ve lived somewhere for a while and have already purchased property in that area, you’ve likely become an expert. Thus, you’ll know if the location and price of a property is a good buy or not. A bargain can be spotted easier when it’s in your local area. Additionally, owning a rental close to home makes it easier to assist your tenants and keep an eye on the property.
7. Build a dependable and trustworthy professional network
A property owner cannot be truly successful without the help of other professionals. Finding a good lawyer, accountant, repair man, and in some cases a property management company, is vital to your success. When you find these partners, you’ll have the support needed to grow your business and make it profitable.
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Ryan Gravel
Ryan Gravel is an American real estate broker and developer. He began his career at a young
age working for his family owned construction company.
After graduating college at the University of Central Florida with a degree in business,
Ryan set out to find untapped prolific markets around the world. His search landed him in
Playa del Carmen, Mexico where he founded Virgin Realty Mexico and co-founded the Saatal
Development Group one of the fastest growing development companies in the Riviera Maya.
With extensive market knowledge, professionalism, etiquette, innovation and integrity Ryan
is known as one of the most highly respected real estate advisors in the region.
