Real estate investing has proven to be a lucrative business opportunity over the last few years, especially with the housing crash in 2008. Adam Ginsberg, the pioneer in eBay entrepreneurship and a successful wealth building coach highly recommends real estate investment as a top business opportunity.
Here are three tips from Adam Ginsberg that will ensure maximum profitability from your investments in real estate.
1. Economize on renovation
For any property that you’ll have to fix it up before you sell it. Ginsberg suggests spending as little money on renovating as possible. That doesn’t mean you cut corners on the quality of renovation as that will do your reputation some serious harm. What Adam means is that you either renovate your property yourself or you use a contractor in your personal network of friends and family as they are bound to give you a much better deal than a contractor not personally known to you.
2. Partner up
Having a partner to invest with in real estate certainly helps. In Ginsberg’s opinion, having a partner who is experienced in the field saves you the time and money that you would’ve spent learning the craft, whether at a school or from your own mistakes. Secondly, a partner who invests money with you also allows you to diversify your investments in multiple properties rather than just one or two properties.
3. Knowledge is power
You may be new in the real estate investment business but if you arm yourself with the knowledge of how the business works, you could be starting at par with many veterans with years of experience. Although it will take you a fair amount of time to gain practical experience, the right information and knowledge can certainly help cut down that time by a fair bit. Read newspapers, industry papers, get information on loans and mortgages from banks, get professional training on how the construction business works etc. No amount of knowledge is too much, so go ahead and soak up as much as possible.