Investing in real estate will expose you to a hectic and fast moving market. You will need to be on your feet and rapidly exploit advantageous property deals. In fact a large proportion of house flipping deals (buy, restore and sell a property) happen in matter of weeks. Nevertheless, for you to succeed in the long term you will need to set your investment goals and prepare a plan for the future.
How to set your profit goals?
- Calculate your desired annual profit based on planned investments.
- Calculate the average profit that could be generated by your individual properties. To do this, look at similar real estate investors in your area or study property sales of the past year.
- Divide your annual target profit by the profit by the individual property profit. This will help you to estimate how many properties you will need to locate and manage this year to reach your profit goal.
Once you have set your profit goals, prepare the groundwork that will help you achieve them.
- Look up similar investors in your region and review their range of properties and any business data that you can access. You could this by looking at press releases in the local real estate media (for small scale investors) or by purchasing business reports (large scale investors.)
- Analyze public property records and find the best areas to go to. These records will reveal past purchases and sales. It could help you understand where your competition is making their biggest profits.