Five Key Principles to Real Estate Investment by Simi Mehta

Real Estate Investing is the craze today with people looking for ways how they can make money in real estate investing. The below-mentioned five key principles by Simi Mehta hope to help you create some sort of mental picture and how you can make money with real estate.

Principle #1- The money involved in the purchase

Real estate investing is just similar to investing in stocks and you want to buy real estate during a period of a marketplace slump. As a result, you can get a massive capital appreciation at whatever time the real estate marketplace heats up all over again. Spending time doing real estate evaluation is very important; since if you cannot satisfy yourself with the statistics, your real estate investment cannot be expected to be a good one.

Principle #2- Monitor Cash flow

In general, real estate investment has a monthly rental income which subsequently is used to pay for repairs of mortgage installments. Accordingly, you would have to keep a close watch on any hike in the interest rates, seeing as they can potentially wear away any anticipated returns on investment somewhat quickly. Once you have a sufficient amount of cash coming in, it is recommended that you consider investing in an additional real estate investment property.

Principle #3- Leverage on other people’s time

Keep in mind that no one can do everything, so the key is to focus on what you carry out best. If you are strong in negotiating deals, spend time in search of some property and subsequently get professionals to manage everything for you. As a result of focusing on what you carry out best and getting other professionals to manage the rest, you are leveraging their valuable time and you can make more money from every new real estate investment. 

Principle #4- Learn how to use leverage with a cash balance

You want to leverage as much as you can so that you can manage your property easily. Remember to keep some cash balance, so that you can hedge yourself against a possible low occupancy of your real estate investment. Leverage at what time used well can make you piles of money, but if managed imperfectly, will bankrupt you. Accordingly, planning your cash flow is very important earlier than when you start your real estate investment.

Principle #5- Spend time with real estate professionals

Learn some real estate investment language and spend time making real estate professionals your friends, because they can tell you about the latest developments and changes in property deals in their geographical location. Spending time with many large real estate investors and then building a network with real estate brokers will significantly close the gap.

About Simi Mehta

Simi Mehta is not just a realtor; she takes a keen interest in real estate investment. As an investor, she understands the market from a residential as well as a commercial perspective. She knows the importance of all the complications in buying, selling, or investing & then growing. She works not only for commission, but loves to educate and empower the investor’s portfolio. If you are ready to start seeing an increase in your real estate income, book a no-charge, no-obligation consultation call with real estate expert Simi Mehta at your earliest convenience.