The market for real estate is an explosive place for your capital to rest. Real estate is a reliable source of consistent returns on your investment. For this reason, some of the wealthiest investors in the world turn to the property market to underpin their success and drive future growth.
If you’ve been thinking about a turn to the property market to begin creating your own source of additional wealth or rental income then now is the time. With the coronavirus pandemic depressing the marketplace of available buyers who are actively looking for a new home, sale prices are dropping artificially in the present and will shoot back up to a more stable level in the months to come. Covid-19 has influenced the market significantly, but it isn’t the only budget-buster when it comes to drawing a paycheck from your properties. Getting in now, and creating a small business operation to take advantage of tax credits and other perks will help facilitate a “buy low” strategy that you may already employ in your stock or other commodity trading regime.
Target your first property with intelligent research.
CEO of Venterra Realty, John Foresi, knows the power of a strong commitment to market research. In fact, any realtor, from Venterra or another realty, will tell you that your first purchase is perhaps the most important one when it comes to building a small business in the home space. Business owners here must ground their enterprise in a winner that will build consistent income over the coming months, and in order to accomplish this, you must find and successfully purchase a fantastic property that offers to do just that.
Your first property will, in all likelihood, be venture-funded by a financial institution. This means that you will need to pay back a monthly mortgage payment for the foreseeable future. As you begin to gather yourself for additional purchasing options to grow your real property holdings, it’s crucial to get this first buy right. If you are able to find a property that will net a fast tenant move-in then you will be able to cover the cost of the mortgage and property taxes simply with the proceeds from your rental income. From here, the sky’s the limit as you begin to build equity in this first property and look for new purchasing opportunities to add to your holdings and generated monthly income.
Grow your footprint with new hires and additional home purchases.
As you make your first strides into the property sales world, it’s important to remember employee benefits that every business owner should provide. At first, you will be the only employee of your real estate firm, but over time you will need to bring in property managers, maintenance staff, and additional assistance in order to continue running the day-to-day operations of a growing real estate network of properties. Employee benefits that will help you in the short term, such as life insurance, health insurance, and income protection insurance, will also create a more welcoming environment for your staff in the future. This is the best way to continue fostering success in your endeavor over the years to come.
There are many reasons you need income protection insurance, but as a real estate business owner, the most important one is to hedge against a sudden downturn in the market. Many factors can influence market conditions, and a shield against a sudden loss of income is an essential consideration for any business owner, but especially one operating a small business in the real estate space where income is required to cover the increased expenses.
As you take your first strides into this property space, make sure you approach any buying opportunity with a well-researched plan and with all the protections afforded to you as a new small business owner in order to lock in the financial security and peace of mind you need to succeed.