This is an exciting time to be investing in real estate. It may also seem like a precarious time for some. So, what are the essentials for making intelligent investments today?
It is absolutely a time to be sticking to the timeless principles of investing. Being disciplined in watching the fundamentals.
Yet, we absolutely need to be investing, and real estate is still where it is at. Perhaps even more so than in the past 10 years.
If you invest wisely, understand the worst and best case, and can be comfortable with that, and are acquiring good assets that are diversified, with plenty of liquidity, this may turn out to be one of the most profitable times to be investing.
Just make sure you have your eye on these four essentials for this phase of the market…
- Income Investments That Are Cash Flowing Now
This is not the time to be speculating and just banking on the best case scenario. At NNG, when we are buying multifamily apartments, we are focused on acquiring those that are already performing and delivering cash flow.
If there are improvements in operational efficiency, occupancy rates, rents, and value add opportunities those are embraced. But they are just the icing on the cake.
- Great, Not Just Good Deals
When it comes to investing in properties, and especially flips, we are super focused on obtaining great, not just good deals.
It is important to build in all scenarios to projections, and account for the best and worst possibilities. If it still makes sense, and there is a significant cushion that will still yield profits, then it is worth investigating.
Investing is a team sport. It doesn’t matter how talented you are, or how well you’ve done in the past, it is about the team.
That includes your mentors, advisors, contractors, and more.
Right now, it is essential to have a cohesive team that works well together, and is strong together.
The organizations that have developed this, and loyalty and trust as a team will be those that make it through, and perform best.
- Walking The Field
Glossy marketing materials, grand projections, and stylish websites are easy and cheap to produce today.
While technology has enabled everyone to work and invest remotely, and often for the good, it is vital to still get boots on the ground, and have someone walking the ‘field’.
Really understanding the local market, and the specific asset are a must. There is no substitute. If you can’t do it personally, then you have someone you trust well to do it.
Find out more about investing in secured debt and real estate, go to NNG Capital Fund.
Photo by Kamen Atanassov on Unsplash