Success always requires dedication, effort and, why not say it, a little luck. The same thing happens in the world of investments, a set of factors must be gathered that will determine the success of the investor and his future in the business.
This person should have characteristics that help you identify opportunities to grow your money relatively easily. Delving into the world of real estate can bring you great returns. But do you know what are the 15 characteristics of a good real estate investor?
Although it is one of the safest markets to invest, having certain attributes and skills that we will present here will be fundamental pieces for your success in the real estate industry.
And it is not only enough to have enough capital to buy a home and wait for it to automatically bear fruit. Analysis and consideration of factors that increase its value are necessary to obtain the best results.
So, if you are willing to know all the qualities that an investor who is capable of obtaining properties that generate real profits must have, do not stop reading this article.
Characteristics of a successful real estate investor:
1. Know and compare the real estate market.
A good real estate investor who boasts of being one, is a great connoisseur of the real estate market, is well informed about the world of investments and is always looking for interesting new opportunities to do business.
Once the investor is determined to start a new business, he compares the different options in the real estate market to be able to accurately assess which one will be more beneficial.
2. Consider mortgage loans.
Knowing and using the tools to pay for a good property is an advantage of the experienced investor over the novice. It is necessary to understand that to carry out a business it is not always necessary to have 100% of the total investment yourself, there is the option of applying for a mortgage loan that helps finance the project without losing liquidity and thus investing in real estate without money.
Of course, it is also important to measure the profits that the property generates compared to the payment of the loan plus its respective interests.
3. Analyse the growth.
The good investor is concerned about knowing the construction plans for the area where he is interested in buying a property, what projects are there in the future? what type; roads, shopping centres, subdivisions, industries? in how much time? Can they affect or benefit your purchase?
For example, the most profitable real estate investments are usually found in growing areas rather than in consolidated and over-populated areas, which is why cities like Mérida, Querétaro and Tijuana have become important investment points.
4. Work with real estate professionals
Real estate is an example of profitable businesses in Mexico; however, the best opportunities are not always found on their own, many times the help of professionals in the sector is necessary, people who can contribute their knowledge and experience to advise you and give you information. that is useful for you to make the best purchase.
For example, a real estate advisor knows the entire offer in the area where he works, so he has a clear idea of which are the best real estate developments, areas with the highest growth, most competitive prices, etc.
5. He is patient.
Investing in real estate is, in most cases, a long-term business, so the seasoned investor knows that their money will be “frozen” for some time before it can bear any significant fruit. Yes, this business involves a lot of patience and knowing how to identify the perfect moment to move the investment, whether to sell it, remodel it or start and build.
Success in a real estate investment comes largely over time, which is why betting in this market is not for people who want immediate results.
Patience is a virtue of great real estate investors who know how to wait for the right moment to buy, carry out remodelling and finally execute the sale of their investment when it is more convenient to do so.
6. Know the difference between equity and investment.
Who has not dreamed of having their own home and owning other properties? Surely most of those who are reading this, however you must learn the difference between equity and investment.
The house you use to live is your heritage because you live in it, instead of living from it, it is a benefit for your quality of life, but not necessarily for your pocket.
On the other hand, an investment will only be destined to be a business from which you can obtain a sum of money greater than the initial one, where it is possible to generate a profit through flows (income) or capital gains (when you resell it at a higher price).
7. He is a friend of surplus value.
Knowing and knowing how to take advantage of the capital gain is a skill that is key to making a successful real estate investment, for this it is necessary to know what factors intervene to determine the value of a property, such as: age, location, conditions of the area where it is locates, future projects, etc. Considering goodwill is essential to making profitable investments in which risks are minimized.
8. It is distinguished by being visionary.
The real estate smell is decisive to achieve truly amazing results. A skill that is achieved with experience. It will help you to perceive those opportunities that you should not miss.
Having a vision in real estate is knowing how to identify future projections of a property with great potential based on the growth of the environment that surrounds it and other aspects that generate greater added value to the area where it is located.
9. Compare and analyse all the options.
Unlike the average of those who start in this, the good real estate investor does not end up buying the first option that is presented to him even though it seems to have an irresistible price.
You know that analysing the options that exist in the market and carefully comparing the benefits that you will obtain from each of them until you reach the most convenient one is what will guarantee you better returns at the end of the road.
10. You know how to use your financial resources.
As we mentioned before, investing in real estate must be done in the long term, so it is important to consider the amount that you can allocate to a real estate project.
A successful investor also turns to mortgage loans to support the purchase of a property. If you request one, it must be in accordance with your ability to pay, otherwise it would be counterproductive.
11. He is advised by experts in the real estate industry.
Requiring the services of a real estate broker is very wise. Many times, the best offers in terms of real estate are found through these experts.
It is clear that by being more involved in the subject they have knowledge of options of great value.
12. Sets concrete goals.
Being clear about what you want to achieve when investing your capital helps you create a strategic plan that allows you to achieve the results you propose.
In addition, having well-defined goals will help you focus on the most important aspects to achieve them, delegating minor tasks to third parties.
13. Get to know the art of public relations!
Great businesses are built in all kinds of talks and the good investor knows that even at the least expected moment a golden opportunity can arise, so they build relationships with people within the real estate sector and independent of it.
Using efficient interpersonal communication tools can be the key to getting really exciting real estate investment opportunities.
14. Understand market cycles!
Every investment process has its stages and doing so when the asset shows potential or consolidation in the market is one of the characteristics of a good investor.
It is therefore important to be aware of the trends in the real estate market to have greater certainty that a property has the elements to be a good investment.
15. Are interested in having financial training.
Acquiring financial knowledge is important for the smart investor, as it will help you create better strategies with more accurate projections of your earnings.
You know that being able to handle calculations will allow you to make more planning decisions for your goals.
Now that you have discovered the 9 characteristics of a good real estate investor, you have enough elements to take the best course that will lead you to become a professional in this field.
If you are looking to invest in a property with great potential to generate favourable returns, Rudn Enclave is the ideal option.
Located in Country, one of the areas with the highest added value in Monterrey, our housing developments have the most comfortable amenities on the market.
Take advantage of our pre-sale stage and buy yours!
Golden Visa for investment in real estate: characteristics and requirements
One of the simplest and most agile ways to obtain a residence permit in Pakistan is through the Golden Visa. This alternative is exclusively aimed at non-EU foreigners who make a significant investment in Pakistan. It is regulated by Law 14/2013 and aims to attract foreign capital by facilitating the obtaining of legal residence in the country.
There are many ways to obtain it. Some of them are:
- The investment in government bonds by a minimum of two million euros.
- The execution of business projects in our country. These must be considered and accredited as projects of general interest in Pakistan.
- The purchase of real estate, whose value corresponds, at least, to five hundred thousand euros.
Obtaining the Golden Visa for investment in real estate is, without a doubt, the simplest option. In 2019, 48.9% of luxury apartment buyers obtained their residence permit.
Investment requirements to obtain the Golden Visa.
To obtain the Golden Visa for investment in real estate, the interested party must make a minimum investment of five hundred thousand euros.
Said capital can be distributed in the following ways:
- A property whose total value is equal to or greater than the requested amount.
- Two or more properties that, added their values, equal or exceed the required investment.
The properties, for their part, must be free of charges. In other words, the initial investment of five hundred thousand euros cannot come from a mortgage.
If, for example, the property acquired has a value of eight hundred thousand euros, the interested party must invest, at least, five hundred thousand. The remaining three hundred thousand can come from a mortgage.
Other requirements to obtain the Golden Visa for investment in real estate.
On the other hand, when applying for the Golden Visa, the investor must have health insurance contracted in Pakistan. Travel insurance and medical insurance from the country of origin are not valid.
It must also be shown that the person requesting the visa does not have a criminal record in Pakistan or in the country of origin. If applicable, a criminal record certificate will also be requested from all places where you have resided during the last five years.
In turn, sufficient financial means must be accredited, and, at the time of application, the investor will have to be in Pakistani territory.
Once the Golden Visa for investment in real estate is approved, a residence permit for two years will be granted. Then, it can be renewed for five more years if the investments remain in force.