Winston Deloney Shares How He Overcame Hurdles In Real Estate Investing
The popular idea of real estate investing amongst layman is that it is the easiest form of investing and the most guaranteed source of returns. You buy a property and it begins to roll in returns, either in rental income or capital gain.
However, this is not always true. Like other forms of investing, property investing promises high return as well as high risk.
We have here with us, a real estate investment expert, Winston Deloney, who will be discussing how he overcame hurdles in real estate investing. Winston Deloney is an expert in rental and investment properties, and he understands the rudiments involved in identifying real estate properties.
Now he shares with us how he overcame the many hurdles associated with real estate investing.
Finding the right property and in the right location
As easy as this may sound, this is the most difficult part of property investing. The location of the property is the most important factor that affects its performance and determines the success rate of your investment. It would be unwise to buy real estate without adequate consideration of its location
I once bought a property in a flood-prone area also renowned for persistent theft. These shortcomings affected the value of the property.
No one was willing to rent the property without a very huge discount. To avoid making such bad decisions with rental properties, I resulted to consulting experts before purchasing real estate.
Even after choosing the right property, I have been faced with the problem of inadequate funding. This did not dissuade me from investing in such properties. The quickest source of funding, as I have found, is to reach out to family members and friends willing lend with little or no interest rate.
I also get loans from banks at a considerable interest rate. Although there are many factors to this, I don’t let them to discourage me.
Buying at the right price
There is nothing more discouraging to me than finding out that I have over bided for a property. This automatically results in a loss in projected return and value.
I have remedied this over time by consulting residents of the area where I want to purchase the property to inquire about the price. I also consult other professionals if need be.
These usually result in additional cost or commission, but, it is preferred to overbidding. Doing all of these made me polish my method when it comes to buying rentals overtime.
The high cost of maintenance
The hurdles do not end with purchasing a property. It continues many years even after the purchase of such property. The cost is like a pest, uninvited and difficult to extinguish. They continue to rise as the property gets older, eating up returns on investment
There are no ways to eliminate these costs. They will continue to exist, as long as the property exists.
I prevent this by ensuring the property was built with quality materials before purchasing. Also, I only go for quality materials during repairs. Quality materials ensure longevity and thus, reduce the amount spent on maintenance.
This is very important, and that is why I consider it the biggest hurdle in real estate investing. Many times, we as investors purchase properties out of emotion. Emotion is an enemy of financial intelligence.
We must learn to keep a clean mind when we are considering investing in real estate. This will prevent bad investment.
I do not buy or sell a property when I am sad, happy, or angry. This is because in these emotional states, I am most likely to make a big mistake.