How to go about and implement your Real Estate Investment Plan?

Every game or play should have a strategy and real estate is no exception. If one starts investing in real estate without a proper game plan it’s more or less dumping the money on scratch tickets. In that case there are chances that you may win a bigger amount of money but the probability of losing all your money is much more. It is better to identify a niche market to invest or even a micro-market. One can choose to be an expert in that niche market with the passage of time. For the start one need not be an expert for making a plan nor is there any need for the plan to be full proof. In matters of investment there must be a well chalked out plan but the matter of expertise is often a stumbling block for preparing a plan. Without a plan it may seem more or less like gambling and leaving everything to chance.

Nevertheless the plan should attempt to answer the three pertinent questions as under.

  1. What does your finances look like?
  2. What are your objectives?
  3. What are your options at hand?

Here are the questions your real estate investment plan should answer.

The answers to these questions are given below with a detailed discussion.

What Do Your Finances Look Like?

The income, expenses, savings and the interest payment should be calculated on a spreadsheet for few months to know about the financial standing. An observation and inference of about a year is better but few months’ observation is mandatory. This will give you an understanding of your cash flow and your financial backing which will help to ascertain how much risk you can take. It will give you a fair understanding on how much you can cut back and what is the requirement of your saving. One should keep track of any lump sum expenses like vacations, home or car repair and other such expenses and keep provision for them well in advance.

Define Your Goals:

Different investors have different goals and your goal will determine what strategies you are going to adopt with your money and the niche of the market you are going to concentrate on. The goal should clearly indicate how long the money will be held and what amount would you strive to make from it. In case the value of the properties and the market condition changes what will be your interim steps considering the amount of risk you are going to take.

What Are Your Options at hand?

As far as real estate is concerned there are many property investment options and now that one’s risk tolerance, amount available for investment and the period of waiting is known, an investment option has to be finalized that closely matches the goals.

In answering these questions one needs to be careful about the maintenance cost and this is an area the new investors often underestimate.

The following Steps

Always Go In Person

After the plan is chalked out and it looks like the goals will be achieved, it is mandatory for one to go and inspect the premises of the property one is going to invest on. The realtors say that real estate is all about being present in person and getting involved in which one gets the right idea about the situation and the property maintenance costs.

If you think you’re ready! Get set, Go!

Once you are ready with your plans and you think the research work has been done and all the monetary planning is also being set up and you are convinced that the idea is going to work and help you reach your goals, plunge into it.

One of the mistakes the real estate investors often make is to wait for the right moment and waste time. The right moment is now! If you wait, the moment will never come although you will have to make course corrections towards your goal as you advance as per the situation of the market conditions.

One needs to keep in mind that the plan is a methodical way to go towards the goal and it’s not a tool which rigidly restricts one to choose the right course of action according to situation.

12 Responses

  1. Naveen

    Recently I also invest my money before going to invest my money I came to read about this article .This article help me how to invest my money to the builders.This article is very good and informative.

    Reply
  2. Maduri

    Recently I also invest my money before going to invest my money I came to read about this article .This article help me how to invest my money to the builders.This article is very good and informative.

    Reply
  3. Narendra

    Hello, I found a very useful description in this article and is very useful for the people who are going to invest into real estate. I am requesting you sir please continue these type of articles regularly this will help us. Thank you

    Reply
  4. Sesha Sai

    If you want more profits in less time then better to invest in commercial constructions like malls, shopping complexes. Before going to invest you have to know deeply about real estate. After coming to a decision where you want to invest, if you read this article you will get more knowledge and experience. It will be the better option while going to invest. Thank you.

    Reply
  5. Kevin

    Hello, I found a very useful description in this article and is very useful for the people who are going to invest into real estate. I’m requesting you sir please continue these type of articles regularly this will help us. Thank you

    Reply
  6. Suresh Prabhu

    Excellent description given in this article it will helps for investors. Investing money is not a small thing so you have to know more. there is a big difference in words and reality. Better to meet people of builders by person not by phone call. we have to realize from our neighbors who are facing problems in this area. So you will get some experience. This article is so good. thank you propertyscam.in

    Reply
  7. Mahanthesh

    Investing is not a simple thing in realty; here you need to workout about the builders. There will be loss of money and time if you fail to know the realtors track-record and their background and verifying their projects, once you got verified everything about the builder, then You can invest your money with them to get back your money as good valuable home.

    Reply
  8. Dilip ghate

    I gone through this article, it has useful description about investing the money in real estate. Those who are looking for homes, flats and plots also can go through this article before investing your money in real estate, You get better idea about your how to proceed with the real estate investment.

    Reply
  9. Krishna

    I’m searching the builder who is able to give chance to invest based on my budget, im scaring to invest into real estate market of Bangalore because so many of friends still facing problems with frauds by invested huge amount….

    Reply
  10. Prabhu

    Here in real estate we have work take 90% support of Brain while investing money into the real estate sector because we are investing money not like doing love so only we have conscious and active with the full of boost of realtors.

    Reply
  11. Siddharth

    Before investing I gone this blog descriptions which helps and improved my skills towards the investments and with the help of this post and with the confident I invested my hard earned money to the builder and now I’m getting good response from the builders which I choose. Thanks for posting useful points..

    Reply
  12. Manish

    Wow, very nice description noticed in this blog which can be helpful for the investors to set their plan and go in a right way…

    Reply

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