Real Estate Investments - Your Depth Of Commitment

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Real Estate Investments - Your Depth Of Commitment

Saturday, July 12th, 2008 Subscribe To Our Feed

Real estate investment goes beyond the arts-and-crafts glamour depicted on television shows about flipping houses. Instead, it’s about diligence, seeing a project through, maintaining a property as a landlord and having the patience to wait out a bad real estate market.

Keep reading for a rundown of three sample scenarios of property owners and how they can make a better commitment to their real estate investment.

Property Owner 1 - The Flipper

The uncommitted flipper is the one who walks into a deal without first investing the time to think out the plan, write up a budget, settle on an up and coming area and wait for the most preferred house.

Meanwhile, the committed flipper takes the time to research neighborhoods, read up on housing sales in their area, and walk through other homes in the nearby vicinity. A committed flipper also goes the extra mile - whether it’s with granite counters or hardwood flooring throughout the house instead of laminate. It’s that commitment and sweat equity that really pays off with a real estate investment.

Property Owner 2 - The Landlord

The uncommitted landlord is the fly-by-night property purchaser who doesn’t take the time to read the local Tenancy Act, understand the county and state legislation regarding property rentals, screen proper tenants or even read up on what’s involved with being a landlord.

Meanwhile, the committed rental real estate investor is either ready by outsourcing the job to a property management firm or having read the local laws and landlord expectations.

The committed landlord is able to prepare a property, attract quality tenants and retain them, and always follow the law regarding tenant’s rights and building standards.

Property Owner 3 - The Personal Real Estate Investor

Whether it’s your primary residence or a summer home, every property owner is a type of real estate investor. After pouring hundreds of thousands of dollars into your home, it should be considered an investment, particularly if its making money.

The uncommitted personal real estate investor makes poor upgrade and renovation decisions, doesn’t give due consideration about resale value or amenities until a few weeks before the house goes up for sale and hasn’t been keeping an eye on his or her home’s property value.

Meanwhile, the committed personal real estate investor always knows the value of his or her home and routinely thinks about resale when making any improvements or renovations in the six to twelve months before the house goes on the market.

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