There are different reasons why people invest in real estate. Some people invest for security purpose, others for investment, and still others invest in real estate to leave an inheritance for their children, as the Bible admonishes. In addition, some persons actually want to leave behind trans-generational wealth and, one of the best ways to do that is through real estate.
A real estate expert; Marshal Field said; “Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy.” Though this statement has been probed over the years, real estate is the business of the ancients. It has been in existence even before man, so most investors want to have a real estate investment to their name.
Whatever your aim for considering real estate investment, there are five steps that you should take before proceeding in your endeavour.
You Need to Be Decisive
Real estate is a high-ticket transaction, and you don’t want to lose your money. You don’t want to be double minded. You don’t want to look like somebody that doesn’t know what he is into or what he is doing. So, you need to be decisive about what you want to do. You need to be mentally ready to purchase a piece of real estate, in order that you won’t waste your time and that of those that you are going to be engaging. You need to be decisive.
Have a Budget
Why do you need a budget? It is because your budget will actually determine a lot of things. Your budget will determine your location. It will determine the value you will get when it comes to you purchasing a piece of real estate. It is necessary therefore to be clear about what you can afford. You don’t want to break your bank account or take undue financial decisions. Set a budget, and be clear about it. Very important!
Work with a professional
I will always say that, “If you are not a real estate expert and you want to go into real estate transactions, find somebody that is an expert in the real estate field and in that industry that can help you make the best decisions.” Many people do not seek professional help because of the fear of paying an expert. But you see, a professional’s fee is nothing compared to what you might lose if you make the wrong decision(s).
Find someone or go to a real estate company that is registered and engage their professional services. However, before you choose a real estate company or agency to work with, you need to do some good research about them. You need to be very sure that they are registered with the Corporate Affairs Commission. You need to be quite sure that they are reliable. It will be good to enquire about them from clients who have done business with them. Gather good facts and adequate testimonials, so you can be sure and confident about your would-be real estate partners.
Secure Legal Backup
I always tell real estate investors to get a lawyer that can draw up legal documents for you. If you are purchasing a property from an individual, you need a deed of assignment. This is what empowers the seller to transfer the property to you as the buyer. Do not settle for word of mouth, it must be in written form. You and the vendor will both need to sign the documents.
If you are investing with a real estate firm, and there is a payment plan; which means you don’t have money to pay outrightly; you need to ask for a deed of contract. A deed of contract is what states how you want to pay the money, the duration for payment, and how payment will be spread over weeks, months and years. When you have fulfilled the payment agreement in the deed of contract, you will be given a deed of assignment which totally transfers the property to you. Do not miss this process. It is very important.
I always say this, “If you are buying a property outrightly, it’s not enough to pay for the property, you also want to take possession of that property.” Taking ownership and occupying your newly purchased property shows responsibility. Take possession.
There are a lot of things you need to know about real estate investments, and I will be sharing more insights with you in subsequent editions. These five steps are very crucial for a start and you want to adhere to them.