Real Estate Investment

Real Estate Investors Pay Close Attention: 9 Crucial Considerations You Need to Make

Have you already gotten into real estate investing? If so, it’s time to refocus on your goals, clarify your vision and double down on planning for the future. Whether you own one property or many, the following considerations are absolutely crucial and should be taken into account immediately.

1. Where Do You Stand?

One of the most important things you need to do, and perhaps the first step to consider, is evaluating where you stand right now. What do your numbers say? Chances are good that no major changes have slipped past your notice, but it’s likely that there have been small changes that may have gone unnoticed, and those can add up to major problems if you don’t spot them now. Where can you cut costs? Where can you make better decisions with your money?

2. What’s Changed?

Change is a constant in the real estate industry, whether it moves quickly or slowly. It’s important to take stock of your area and see what has changed. What neighborhoods are hot now? Which are less so? How have these changes affected your investments? How will those changes affect your plans moving forward, and how can you take advantage of those trends to ensure that you benefit from them?

3. Clarify Your Targets

It’s impossible to move forward with your investing efforts if you lack clear, defined targets. You also need clearly described tasks or steps that lead you from target to target. Your goals should be measurable and attainable, and you should be able to track your progress toward those goals through individual, manageable milestones. Ideally, smaller goals should dovetail with larger ones, creating a path toward success for the long term.

4. Plan for Adjustments to Improve Performance

If you own multiple rental properties, you know just how costly maintenance, and even just utility bills can be. There are many ways that you can offset those costs by planning for adjustments now. For instance, does one of your properties have an outdated HVAC system? Perhaps it uses lots of water, or maybe the appliances are old and not energy efficient. These are all examples of where you can spend a little bit of money now and reap the benefits for a long time afterward. Adjustments now save you time, money and headaches down the road, but can also foster savings.

5. Cut the Deadwood

Every investor will encounter this at some point – something’s just not working the way it was supposed to. Take stock of your situation now. Identify what isn’t working and then determine why it isn’t working. Based on that analysis, you can determine whether it’s something that can be fixed, or if you need to cut the deadwood and move on. You can bring this to bear on pretty much everything in your process – identify elements that can be streamlined or changed to make everything as efficient as possible. Whether you’re considering changing property management firms, or dumping a particular investment property that consistently underperforms, now is the time to make those adjustments.

6. What Went Right?

There’s a lot of focus on what goes wrong with your process, but you also need to identify what went right. Whether you paid less for maintenance, or one of your properties performed very well, it’s a cause to celebrate.

7. Winterize/Summer-Proof

Winter and summer are particularly challenging for property owners and investors. Get ahead of the game by winterizing or summer-proofing your properties before extreme weather hits.

8. What’s Changing?

Ready to make some upgrades to your properties? Is it finally time for that long awaited renovation? Plan those now. Determine how you’ll pull them off, when they’ll be accomplished and then get the ball rolling.

9. Learn

Chances are good that you’ve made a couple of missteps in the last few months. It’s important to see those for what they are – lessons to be learned. Learn from them, and then move on.

With these considerations, you can move forward confidently, manage your properties and reap the rewards of your savvy investments.