Are you thinking about becoming a redevelopment investor? If you are, the redevelopment industry is a great business and investment idea. The redevelopment industry is so lucrative that it has nurtured successful investors and entrepreneurs such as Steven Taylor, the president of Ness Development Inc., and owner of Taylor Equities in Los Angeles.
You can become just as successful in your investment venture if you put in the work and dedication, and possess the right temperament, skills, knowledge, and traits of a fearless investor. Here are three tips to get you started on your redevelopment investment venture.
Choose the Right Property
A redevelopment investment plan begins with choosing the right property. It should be in a strategic location to serve its intended purpose, and should also give a high ROI on investment. For instance, if you redevelop a building for rental use, you should follow the 2% rule that says the total monthly rent of the building should be at least 2% of the investment cost.
Research the Market
The real estate market is highly volatile and dynamic. Before making a purchase or an investment, ensure you have all the facts and figures right. Research deeply into the market – identify trends and forecasts that might be useful in informing your investment decisions. Having the right information and making use of it can make all the difference between a losing and rewarding investment.
Define Your Goals
When making an investment plan, you must define the objectives and goals of the investment. What do you hope to gain, and how do you get your money back? Define both your long term and short terms goals for the redevelopment. This way, you can accurately predict the ROI and investment timeline, enabling you to prepare financially for the anticipated outcome.
Real estate investments can be a tricky business; it’s important to understand what you’re getting into before putting your money on the line. However, if done cautiously, some of these risky ventures are the most rewarding businesses.