There are many myths surrounding real estate investing. Once you start investing, you will realize that the success stories on the web are few and far between. Yes, you read that right. There are loads of reasons why you may encounter difficulties. However, the one that is most often mentioned regards the nature of the industry. The beauty of real estate is not only that you can buy low and sell high, just like any other commodity, but your return in investment is guaranteed and cannot be lost, unlike any other commodity. You can make a lot of money through real estate investments. However, you will definitely face challenging roadblocks to getting the best return on your investment in real estate. This article will specifically address 6 common obstacles to making money in real estate and how to overcome them.
1) Procrastination: Believing that it is too early to start or invest.
If you are thinking about investing in real estate, you can’t start too early. One of the biggest obstacles to making money in real estate and perhaps the best return on your investment is starting too late. The idea is to buy and wait, not wait to buy. When it comes to investments, especially real estate, there are one thousand and one reasons for you not to start now. For many people, this means they end up buying their first property at an advanced age and then they need to rely on their savings just to make the monthly payments. The most common of these reasons is comparing the state of development of a particular location to saturated locations. A number of people have made this regrettable mistake, even in our mega city, Lagos State. Who would have predicted exactly, about 15 to 20 years ago, that places like Ajah, Lakowe, Ibeju Lekki, etc would be experiencing rapid development as it is today? Real estate companies keep opening up new locations and expanding in Lagos, and this opportunity keeps presenting itself to prospective investors.
The best way to overcome this roadblock is to start now. There are cheaper land and houses in places like, Ijede in Ikorodu, Ibeju Lekki, Epe, etc. Explore your opportunities not only in these areas but in some other developed areas like Ikoyi, Lekki, Ajah, etc or even contact real estate company such as WhiteGate Homes to begin with.
“If you think you are not ready, you should think again because it will never change. It’s never going to go lower than you already know it now. So now is always the best time. If you are not fully ready, you can commit, you can start working towards it, you can have a plan. It’s like some properties people did not acquire 5 years ago, and now they are either regretting that the place is now developed or that the place is now a lot more expensive. However you are, I will just say for properties, JUST START and before you know it, you will have amassed so much wealth from just investing in properties. “
Kehinde Bankole – A movie goddess
2. Buying real estate can be expensive:
The truth is that buying real estate can be very expensive and financing plays a large role. However, there are many windows through which you can get funding for your next investment, but sometimes it can be hard to find a financier that is willing to work with you. To overcome these obstacles to making money in real estate, you can use a real estate investment company, raise money with friends, or apply for a mortgage or bank loan . Real estate investment in Nigeria is on the rise due to its various advantages and benefits over other investment tools.
There are several ways to invest in property, but choosing one method over another depends on your personal preferences and financial plans. While there are disadvantages, using an individual plan for your needs is usually recommended for beginners. However, when purchasing large quantities of property, it may be better to purchase them under an umbrella plan or hire someone who has experience because it could save you money due to overhead costs and negotiations regarding fees from attorneys and investors alike.
3. Inexperience and inadequate information:
The third of the six obstacles to making money in real estate is inexperience and inadequate information. The real estate industry is quite broad and it can be challenging to know where to start. In fact, one of the main reasons that people are intimidated when it comes to real estate investment is because they realize that they lack real estate experience or the required knowledge. Yes, there are details to learn and essential questions to ask. You won’t always be able to anticipate them all, but you need to stay aware of the process and what makes logical sense in order to avoid unnecessary fees and confusion about the costs of home ownership.
In order to become a successful real estate investor, you should always research before making any investment decisions so that you don’t make any unnecessary mistakes. You first have to educate yourself about the ins and outs of the real estate market, including all aspects that could affect your investment. This includes basic real estate knowledge, such as the different types of investment properties and real estate investment strategies, as well as financial and legal aspects that you need in order to move forward in the real estate business.
You can gain the needed knowledge through many available sources, such as books, blogs, guides, and even mentors. It does not take that long to find your way to transparency and education on the basics of how real estate investment works. With WhiteGate Homes and Facility Management Limited, the information you seek is only a click away. Please contact Olumide at 08028913436 or Lanre at 08173773769.
4. Not having a precise plan of action
When it comes to investing in real estate, instinct alone is not enough for substantial profitability. It is key to overcome these obstacles to making money in real estate, especially of not having a precise plan. If you want to get a maximum return on your investment in real estate, you need to have a clear plan of action and to always stick to it. Every other business does. Any business can fail, and any investor can go bankrupt without a good plan or structure to run such a business or manage such an investment. The economist believed that businesses most likely enjoy what is called normal profit in the short run and abnormal (excessive) profit in the long run. This is typically and practically true of real estate investment, but not without a good plan. Your objective constitutes your plans and forms the framework for thriving in real estate investments. Do you want to buy a rental property, buy to resell later, or even buy a property to lease out?
As a starter, you need to plan your journey into real estate investment. If you are already into it but experiencing a setback, you need to go back to your drawing board. Investors are often faced with various proposals that seem interesting, but do not correspond to the set objectives. In these cases, you will need to sit back and think things through. You know that if you put your financing or all your cash into this property, you will not be able to continue investing in other properties. Keep in mind that a property that doesn’t suit you will not allow you to achieve the goals you have set beforehand.
5. Qualifying for loans and mortgages
Many people have difficulty qualifying for a bank loan. This is especially true for self-employed individuals and those who have recently begun working; they have a poor credit history and/or are in debt. This discouraged people from investing in real estate properties because, in order to participate in the real estate investing world, you must be able to purchase a property.
There is no magic solution to this, but there are some options to consider. You should work to improve and protect your credit score, and if you have debt, make sure to pay it down. There is also the option of paying in cash, but this requires either being wealthy or saving for a very long time. Borrowing money from a private investor, a family member, or a friend is another option. Keep in mind, however, that the interest rate will be determined by the private investor based on the nature of your relationship and by the banks based on the prevailing interest rate in the banking industry.
6. Fear of taking chances: Risk
While it is true that you cannot go wrong with property investment and there is possibility of risk measurement and management, such thing as “zero risk does not exist” As with any investment, property investment involves risk. But you can control your risks by training yourself and by being accompanied by professionals in this field, or better still, approach a professional company like WhiteGate Homes. Being afraid of taking a giant step toward starting can rob you of the real benefits of real estate investment. In real estate investment, you can calculate and measure your risk with available data, and taking calculated risk is a great way to build mental strength in the real estate industry. Being paralyzed in analysis is not good for you, and you will never move forward if you wait for the perfect deal. When most of the lights are green on a property, you should seize the opportunity, especially if your goal is to grow your assets quickly.
FINAL NOTE
Apart from these 6 (Six) common obstacles to making money in real estate, you may encounter other challenges along your way, but the important thing is to face each of them. Your challenge can be peculiar based on your analysis and surrounding factors, but it will be easier for you to deal with them accordingly with the right tools, information, and mindset. You can overcome any obstacles in your fast lane using budgeting and financial planning, proper time management, a solid network, and a solid framework. You can turn cons into pros and succeed in your real estate investment. The time is now, JUST START
