Owning a property should not be synonymous with receiving a monthly income from your tenant. Investments in real estate can generate you great returns if you move away from traditional approaches, which are capable of generating assets, but are far from being highly profitable.
Moving away from the traditional perspective on this type of investment, it must be assumed that the real estate business is not to accumulate and flow properties. The money has to be in motion and evaluated against alternative investments, experts recommend.
To Jorge Castanyares, director of Housing Marhnos, the decision to sell should be clear and not have to “get attached” to the goods and have to reinvest.
Besides real property must be measured against other financial instruments. “If you’re giving less than the bank, you sell it and buy another to generate you more” recommends Castanyares.
In Mexico there are many families who have unproductive properties and believe that property is to remedy the evils; have them for years in case an emergency comes, because nobody has taught them to move the money or because they are afraid of spending that capital if you do liquid, but could earn more if you buy other says Adrian Loustaunau, author of More Money.
Real estate investments should be viewed as any financial action: “It’s just that you have to sell the shares when they are higher, because it is false that real estate will never lose their value, as in the stock market, there are cycles in the real estate, “says Castanyares.
So the secret is to rent and when it reaches goodwill sell.
10 considerations to potentiate your real estate business:
1 -. The best opportunities “are not promoted in both traditional media channels,” says Adrian Loustaunau, banks are seized debtors, portfolio managers, owners or real estate agents who know the potential of your property .
. 2 – Sometimes it is advisable to hire a real estate broker with good information because “you pay the 5% commission, but you get to 295% it will generate,” says Loustaunau.
. 3 – To take best advantage of the investment, you have to know when to sell, according to experts, the properties are recycled every so often.
. 4 – Since you buy a fixed price target to which you want to go, so you know when it’s time to sell.
. 5 – Try to find the property with the least possible previous buyers or intermediaries, since the gain of each is an additional cost to the ultimate customer.
. 6 – In all states of the country there are good opportunities. Industrial development in cities with more properties, but in small places there is a most interesting because there are fewer buyers.
. 7 – Times of crisis often opportune times to buy.
. 8 – If you have no capital to buy can get into investment property if you do detect interesting properties and charge commission to real estate brokers or private customers.
9 -. Applying for a loan to purchase real property and paid with the income is not a bad idea only if the corresponding financial runs are made, the required rates of return are calculated and if proper credit is chosen.
10 -. Reversing a preliminary contract is recommended against this income and apply for a secured credit, although it is more expensive than a mortgage, has the advantage that the loan is given against the applicant’s ability to pay, but studying the cash flow from the investment.