Pure falsehood, any type of investment always has risk, and real estate investment is no stranger to this fact. The important thing about a real estate investment is to mitigate, reduce, reduce both internal and external risks. External risks are difficult to control, they are subject to the world and country economy. Let us not forget that the growth of the construction and real estate sector is directly proportional to the economic, financial, political and economic part of a State. Can we control it? Obviously not. Get out of our hands, we do not have and will not have control in this regard. As for reducing the risks of the property itself. That we can do. We have to learn to distinguish the real from the apparent, to make correct decisions in the real estate market.
And what are the risks?
- That the tenants do not pay
- Buying a defective property
- Unexpected expenses
- Little liquidity
The investment can be to sell or rent, a first home or a second residence, for young people, empty nest, full nest, for foreign tourism or domestic tourism, but whatever the reason, despite the risks, buying a property IS a good business.
According to my experience, a good investment of properties for rent (cash flow) will be when the annual profitability is greater than 7%. And when it is a 25% capital gain investment. If it is less, better not invest.
What about the risks up the lines? Slow them down one by one.
For A Real Estate Investment You Need A Lot Of Money
Many people think that to invest in real estate you must have a significant amount saved or a high monthly income, when in fact there are real estate investment strategies in which you do not need a lot of money.
First, knowledge, information, learning about finance, investment, architecture, law, real estate contracts, real estate marketing, real estate negotiation, and above all the real estate market (essential element): It is our source of power that materializes in Money.
You have the real estate business or an agency like spotless agency, you have found an opportunity and what you have to do is look for an investor, this may be a direct relative or a friend who has the money to invest. The investor buys the property, previously you have made him sign a document (remuneration pact) that guarantees you a percentage of the profit of the real estate product that will be sold. Then the profits are divided and you appear with a significant percentage of bills.