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How to Strategize a Real Estate Investment


25th June 2015 Facebook Twitter LinkedIn Google+ Real estate Investment



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Each business has a plan including that of real estate.
Your strategy is a plan to achieve specific objectives in a systematic way. There are several ways of creating a successful business strategy.

1: Imagine and Set Goals
Think about what you want to achieve from your real estate investment business. It can be spending unlimited time with your family, visiting places like Lagos, Ibadan, Kaduna, Bayelsa, Edo, etc. So, your dream can be to own a home in each of these areas.
Some customers always dream of financial freedom within five and ten years. There is possibility of having financial freedom in less than ten years if the basics of real estate investment principles are correctly applied.

2: Remember to Set Financial Goals
Know what it will cost to realize your set dreams. The cost in terms of wealth, resources and cash flow should be determined. Assign a date or deadline to achieving this goals. Also, write down your investable assets not including the liabilities. This represents your current wealth also known as “net worth’.

3: Present Wealth or Net Worth
Since you have your dream in mind, identify your real assets that are presently available for investment. You can list a part of your jewelleries, one of your expensive cars (not applicable to single car owners), etc. Your present wealth is the available cash or asset that you can immediately put into your real estate business.

4: Make a Plan
Make a plan that will make you actualise those dreams. This usually includes the aspect of real estate you will be investing, your values and mission. Your real estate investment business plan will make you actualize your dream within a short period of time. Your plan should entail all that you need to be a successful real estate investor. See Realtor.org and Bplans.com for more on writing a real estate business plan

5: Focus an Aspect of Real Estate Investment
There is no harm in diversifying your investment but it is better to focus a particular aspect of real estate business. People will know the aspect you focus and that you are more likely to be the best in that aspect. You can choose to invest in industrial land and building, multifamily homes, single family homes, farm lands, commercial and residential lands, etc. A client told me he chose investing in single family homes because of rising numbers of new couples.

 7: Set Your Standards

This is also an important part in strategizing your real estate investment. You need to set criteria for your investment. Make sure these standards will make you actualise those dreams you already have in a short period of time. For example, some real estate investors will not invest in a commercial or residential land that has no survey records with the state government. Set your own standards and don’t compromise them.

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