Real estate investing can be a lucrative endeavor if done correctly. However, as with any industry, investing in real estate comes with risks, and mistakes can be quite costly. That’s why it’s important to learn everything you can from those who have found success in the space.
Ofir Eyal Bar is a successful real estate mogul that owns several properties around the world, ranging from homes to mines. Here are tips that Mr. Bar believes can help up and coming real estate investors take their portfolios to the next level.
Tip #1: Call Around For Deals
One of the big mistakes that new real estate investors make is limiting their shopping to what is available in online listings. The truth of the matter is that most of the time, better deals can be found elsewhere.
One of the best things that you can do to find deals of great value, but that come at a low cost is to call banks and credit unions in the areas that you are looking to invest. When calling, ask the banks for an updated list of foreclosed properties for sale.
Foreclosures are some of the lowest cost deals that you’ll find. Moreover, by going to the lender that holds the foreclosure directly, you’ll cut out any cost associated with working through a middle man.
Tip #2: Get A Perc Test
Raw land investments can be attractive opportunities. However, before purchasing raw land, it’s important to remember to get a perc test. In this test, a member of the city that you purchase the land in will come out, dig a hole, and pour water in.
The point of the test is to see how fast that water drains into the soil. If the water does not drain fast enough, a septic tank will not be able to be installed on the property. This can prove to be a headache as with no septic, you cannot build a home, office, storefront, or really anything of value on the property.
So, while a perc test may cost anywhere from a few hundred to a few thousand dollars, depending on where the land is, it’s worth the investment to avoid any headaches in the future.
Tip #3: Know Your Market
The values of real estate can vary wildly from one area to another. For example, in a rural area, a three bedroom home may sell for $90,000. However in south Florida, a three bedroom home may sell for around $350,000.
You’ll also want to consider the demand for your investment property in the area and take a look at how competitive offers have fared on the market. The more you know about your particular market, the better chance that you have of becoming a success in the world of real estate.
Real estate investing can be incredibly rewarding. However, if you want to get the most bang for your buck, it’s a good idea to try and follow in the footsteps of those who have already found strong success.
With years of successful investing under his belt, Ofir Eyal Bar is a great expert to learn from. Following his tips above and on his personal website will likely help to propel your real estate investing portfolio to the next level.