Real estate investors in New York, if you’re new to real estate investing, you’re probably wondering, ‘What’s the best way to succeed?'”. And why wouldn’t you? This is a whole new adventure and you’d hate to make mistakes that could have been easily avoided. As the go-to in New York for hard money loans, we have worked with plenty of real estate investors in New York and want to help you succeed. So if you’re considering becoming a real estate investor in New York and want to know how to succeed, read the nine tips below.
This sounds like common sense, but it needs to be mentioned. Make a business plan. It’s the best way to think through your intentions thoroughly and gives you the chance to plot out every action you need to take, or plan to take. This also gives you the chance to plot out your long-term and short-term goals. Having a clear set of goals gives your business plan a focus and something you can refer to should any small hiccups arise.
If you need a little help in drafting a business plan there are few resources online that can guide you. There isn’t a definitive “right” way to write a business plan, but here are a few things to keep in mind:
Getting this all down on paper now saves you a lot trouble in the future so take the time to iron all the details out.
It’s important that you know the current trends in the market you intend to invest in. The best way to do this is to first focus on small-niche markets. If you start out learning everything about a larger market you’ll be so swamped with information that you might not know how to start. For example, instead of focusing on Brooklyn focus on East New York, Cypress Hill or Crown Heights.
So for your first few investments, work in small markets. Then really dig deep into the information you find, demographic information and consumer spending habits.
You can move on to larger markets when you’ve gotten more experience and a better feel for how investing goes for you.
It is always better to be honest in whatever business you undertake. In investing, like any business, how honest you are and how you handle your business dealings can affect your reputation as an investor. If people see that you’re trying to skirt certain laws or are acting less than reputable they’ll be less likely to work with you. So make sure every investment is above board.
Have you ever had a such a good experience with a business or store that you just had to refer them to others? Maybe you had help picking out a new smartphone or car. Did the person helping you take the time to listen to any concerns you had? Did they take the time to talk about the differences between the options you might have had?
The reason you most likely referred that business is because they treated you with respect and made you feel valued. If you want the same type of referrals from the people you do business with you’ll have to do the same. Take the time to listen to concerns and talk them out if need be. Pay attention to details to show you’re actively listening and present your business in a good light. The more you do this, the more people will be willing to refer you to others.
If you want referrals, make customers feel valued and respected.
Trends change. One month the niche you’re working in will show one trend, and then, quite suddenly, a new one might pop up. That’s why it’s important to always be on the hunt for more information on current trends. You don’t want to be in a situation where you suddenly find out all your information is outdated. So keep current and be open to the changes that come your way.
It’s important that you understand the risks in every investment you make. Even if the deal looks like a great one, make sure you know what you’re getting into. You don’t want to be in a situation where the house you invested in needs more work than you can afford. Finding out the risks now saves you a lot of money in the future.
As your real estate business grows, you’re going to encounter a lot more bookkeeping. While it’s good you’ll devote time to your books, with all the new tax laws you might run into, bookkeeping could take up so much of your time that you could neglect other important business tasks. That’s why we recommend hiring a qualified accountant. Not only will they handle all of your expenses, but they’ll also be able to do your taxes efficiently so you can focus more on your investments.
As a first-time investor, you’re going to come across new challenges. Never assume you have to face them on your own. If you’re in a situation that you know you need a little help in, don’t be afraid to ask for help. Find an advisor or someone you trust to talk out your situation so you can figure out your next steps. You’ll feel a lot more relaxed knowing you have people you can turn to when you need them.
Connect with a support group of investors like yourself. They are the only other people who understand your stresses and successes. The bonus of doing this is you might find a mentor inside your group willing to share their years of knowledge with you. Maybe they’ve found the best source for understanding new market trends, or know when certain trends are more likely to be passing fads. With a support group at hand, you’ll be able to meet any challenge with the right knowledge and experience to back you up.
Gauntlet Funding is a New York-based private funding group comprised of experienced and knowledgeable industry professionals who specialize in direct private lending and distressed asset financing. If you’re wanting to become a real estate investor in New York, call Gauntlet Funding today at (631) 465-2161 to start your new financial future.
9 Ways New Real Estate Investors Can Succeed in 2018 | Gauntlet Funding-Melville, NY