Real Estate investment provides opportunities to grow wealth, but long-term success as a property investor does not come without preparation. Financial and property management skills, along with an understanding of the local market conditions are essential for successful real estate investment.
Define Investment Goals
It is critical to have clearly defined goals and expectations before committing capital to any investment. There are a wide variety of real estate investment opportunities, and the right one for any investor will depend on the long-term objectives.
Investment goals may include:
- Steady income flow
- Rapid capital appreciation
- Long-term capital appreciation
- A combination of these returns
Real estate investment can take many forms, and it is important to select carefully among the properties available in the Chicago market in order to achieve investment goals. From commercial office and retail space to multi and single-family residential buildings, each type of property offers opportunities for the careful investor.
Success is Earned
As in every venture, success is earned. Beyond a passion for real estate investment, there are other factors essential for success.
Professional Management and Support
Investors can’t know it all. By surrounding themselves with a knowledgeable and professional team, they can better understand the risks and potential returns of investment opportunities.
The Ability to Say No
Sometimes the right answer to even the most attractive real estate deal is ‘no.’ Regardless of how good it looks, if a property will not help achieve the defined investment goals, it may be best to walk away.
Knowing When to Say Yes
Some deals may not appear on the surface to be aligned with investment goals, when in fact, they have attributes that will offer positive returns. A professional support team can help determine the value of any proposed investment and its alignment with investment goals.
Patience and Timing
Investors must be willing to wait. A ‘No’ to an investment today, may be a ‘Yes’ next month or next year.
Financial Management Skill
Successful investors, learn the financial management skills that bring success. Budgeting, capital accumulation and maintaining good credit are all part of successful real estate investment and management.
Dedication
Investment in real estate can provide long-term security and financial growth, but success does not come without effort. Successful real estate investors dedicate themselves to understanding local market conditions and to learning the skills that lead to success.
