Investing in real estate and making much money is possible. Still, according to Brad Zackson, co-founder and development director of Dynamic Star, some decisions result from ill-informed decisions. Even though for Brad Zackson sometimes a property investment fails for reasons outside the investor’s control, an investor must conduct thorough research and evaluate a property objectively to avoid an unsuccessful property investment.
A significant factor in selecting the right property is also knowing how it will be managed, according to Brad Zackson. Investing in a property requires narrowing the focus and finding out as much as possible about its location. Every city differs, and the areas within differ significantly as well. In doing so, the investor will be able to determine the true value of a property.
Keeping the market research focused will help avoid surprises, and vacancy rates and rental prices will be reflected more accurately. A big-scale development might occur in a certain area, and it is important to understand how it will affect the investment property if it occurs. A beginner investor cannot expect to be a professional in the real estate market.
According to Zackson, a systematic approach and a set of criteria for evaluating properties will enable them to make better investments. Suppose an investor applies this criterion to all potential properties. In that case, he or she can make an objective decision instead of falling in love with a specific property and overlooking its faults. In property management, the goal is to retain tenants. Tenant turnover kills cash flow.
Property maintenance is key to retaining tenants. There are two options for investors to choose from when it comes to property management. Alternatively, they can hire a property management company or manage it themselves. It is important to know who will manage the property because it will have a noticeable impact on it.