SlideShare a Scribd company logo
"KNOW REAL ESTATE"THINGS TO KNOW BEFORE YOU BUY THESE LAND
Lesson #4
For the first time buyer:
Treat your property as home not an investment. The safety and security a
home provides is manifold compared to the rental you have to pay and the
short notices on which land owners can ask you to move out. Stay invested
for a period of 5 to 7 years and you would have certainly doubled your
capital. Use the wealth created to re­invest into the new home and also
start investing small into say Plots, smaller apartments etc
For the small Investor:
Do not compare this to stock market. Irrespective of the boom and bust cycle
you will get very good deals and good deals are not always with the big
developer or in fancy projects. Trick of finding a good deal is:
a. Work closely with realtors who are strong in particular suburbs (do not try
to save on brokerage – that’s the cost of getting a great deal). When you send
the word be clear on budget, size of unit, rental (always take a unit which has
high rental potential), loan planned, age of the building and the location. For
ex: Did you know that older CBD apartments are priced equal or less than the
price of older apartments in the Major suburbs. Rentals however are always
higher in CBD.
For the small Investor:
Maintain reasonable liquidity so that in the event of a tenant moving out you
have sufficient liquidity to service loan, refund tenant deposits, invest into
maintenance and hold on for few months to either liquidate or re­tenant. The
advantage of having some cash reserve is that
i. You can wait to achieve the target price (realistic however!)
ii. You don’t have to give it to any tenant
iii. To a tenant refusing to pay increment you can call his bluff
Quick Flipping – you have to be extremely fortunate to be able to achieve this.
Don't ever try to invest into real estate and planning to make money with a
quick flip.
For the Big Investor:
This is not loan business where you give money and make 20% return. You
may have been lucky a couple of times making such fixed returns, but be
ready to lose your capital. The sure fire ways to make mid teens returns
are:
Invest with good developers, meaning professional guys with strong team
and who have cycle experience. Real estate cycles can be painfully difficult,
professionals who have experienced it would be realistic in their approach.
Real estate is not the Tech Unicorn story where a start up comes and
achieves incredible valuation. This is like the Rocky Movie – Getting hit
and keep moving forward to win.
For the Big Investor:
Structure your investment in a manner that there is incentive for the
developer also to work with you. Establish a minimum return expectation
(typically bank finance+5%) and then always share the upside with the
developer. This way he will work hard to deliver you the upside while earning
for himself. The moment it is a burden he will short shaft you by realising part
money in cash etc.
Trend spotting is a bad thing in real estate. Do not try and follow trends of
investing in logistics park, buyback schemes, double your money in 3 years.

More Related Content

What's hot

Sully safi vancouver
Sully safi vancouverSully safi vancouver
Sully safi vancouver
Sully Safi Vancouver
 
Adapting To A Funding Desert - tips for Entrepreneurs and Investors in early-...
Adapting To A Funding Desert - tips for Entrepreneurs and Investors in early-...Adapting To A Funding Desert - tips for Entrepreneurs and Investors in early-...
Adapting To A Funding Desert - tips for Entrepreneurs and Investors in early-...
edfrench
 
investing101
investing101investing101
investing101
arwin_img
 
Fundraising vs bootstrapping
Fundraising vs bootstrappingFundraising vs bootstrapping
Fundraising vs bootstrapping
Deepanshu Saini
 
Middleincome
MiddleincomeMiddleincome
Middleincome
atul baride
 
Making Wise Private Investments
Making Wise Private InvestmentsMaking Wise Private Investments
Making Wise Private Investments
kevincadwell
 

What's hot (6)

Sully safi vancouver
Sully safi vancouverSully safi vancouver
Sully safi vancouver
 
Adapting To A Funding Desert - tips for Entrepreneurs and Investors in early-...
Adapting To A Funding Desert - tips for Entrepreneurs and Investors in early-...Adapting To A Funding Desert - tips for Entrepreneurs and Investors in early-...
Adapting To A Funding Desert - tips for Entrepreneurs and Investors in early-...
 
investing101
investing101investing101
investing101
 
Fundraising vs bootstrapping
Fundraising vs bootstrappingFundraising vs bootstrapping
Fundraising vs bootstrapping
 
Middleincome
MiddleincomeMiddleincome
Middleincome
 
Making Wise Private Investments
Making Wise Private InvestmentsMaking Wise Private Investments
Making Wise Private Investments
 

Viewers also liked

Sampling distributions
Sampling distributionsSampling distributions
Sampling distributions
Ulster BOCES
 
futuer classroom
futuer classroomfutuer classroom
futuer classroomlovesym318
 
Tugas5 1300631015
Tugas5 1300631015Tugas5 1300631015
Tugas5 1300631015
bharud014
 
El aborto
El abortoEl aborto
El aborto
ALEjandro palma
 
Ll Lower sec - Kiss 2
Ll Lower sec - Kiss 2Ll Lower sec - Kiss 2
Ll Lower sec - Kiss 2
Languagelab Group
 
bdo grad recruit brochure 2016 [low-res]
bdo grad recruit brochure 2016 [low-res]bdo grad recruit brochure 2016 [low-res]
bdo grad recruit brochure 2016 [low-res]
Ann Hogan
 
Plan curricular de bloque
Plan curricular de bloquePlan curricular de bloque
Plan curricular de bloque
Ney Chacan
 
Secured Video Watermarking Based On DWT
Secured Video Watermarking Based On DWTSecured Video Watermarking Based On DWT
Secured Video Watermarking Based On DWT
Editor IJMTER
 
Guía de trabajo 4° año dibujo técnico
Guía de trabajo 4° año dibujo técnicoGuía de trabajo 4° año dibujo técnico
Guía de trabajo 4° año dibujo técnico
U.E. Colegio Teresiano Nuestra Señora de Coromoto El Paraíso
 
İDİL VARDAR CV-ingilizce
İDİL VARDAR CV-ingilizceİDİL VARDAR CV-ingilizce
İDİL VARDAR CV-ingilizce
İDİL VARDAR
 
Conflicto y oportunidad en la empresa familiar
Conflicto y oportunidad en la empresa familiarConflicto y oportunidad en la empresa familiar
Conflicto y oportunidad en la empresa familiar
Club Argentino de Negocios de Familia
 
pptx del Salto alto estilo fosbury
pptx del Salto alto estilo fosburypptx del Salto alto estilo fosbury
pptx del Salto alto estilo fosbury
Alexander Schabauer
 
Planificacion de bloque5 octavo
Planificacion de bloque5  octavoPlanificacion de bloque5  octavo
Planificacion de bloque5 octavo
PATRICIA CANTOS
 
Languagelab 1.2 - Long Monophthongs
Languagelab 1.2 - Long MonophthongsLanguagelab 1.2 - Long Monophthongs
Languagelab 1.2 - Long Monophthongs
Languagelab Group
 
Türkiye açısından Avrupa birliği'nin önemi
 Türkiye açısından Avrupa birliği'nin önemi Türkiye açısından Avrupa birliği'nin önemi
Türkiye açısından Avrupa birliği'nin önemi
Onur_Nak
 
Tema 1: Antecedentes Históricos del estudio de las enfermedades
Tema 1: Antecedentes Históricos del estudio de las enfermedadesTema 1: Antecedentes Históricos del estudio de las enfermedades
Tema 1: Antecedentes Históricos del estudio de las enfermedades
Dian Alex Gonzalez
 
Scatter Plots
Scatter PlotsScatter Plots
Scatter Plots
Bitsy Griffin
 
Kaко је живјела моја прабака,прађед, бака
Kaко је живјела моја прабака,прађед, бакаKaко је живјела моја прабака,прађед, бака
Kaко је живјела моја прабака,прађед, бака
Ivana Milic
 
Sujets anglais bac_a2_2013
Sujets anglais bac_a2_2013Sujets anglais bac_a2_2013
Sujets anglais bac_a2_2013blessedkkr
 

Viewers also liked (19)

Sampling distributions
Sampling distributionsSampling distributions
Sampling distributions
 
futuer classroom
futuer classroomfutuer classroom
futuer classroom
 
Tugas5 1300631015
Tugas5 1300631015Tugas5 1300631015
Tugas5 1300631015
 
El aborto
El abortoEl aborto
El aborto
 
Ll Lower sec - Kiss 2
Ll Lower sec - Kiss 2Ll Lower sec - Kiss 2
Ll Lower sec - Kiss 2
 
bdo grad recruit brochure 2016 [low-res]
bdo grad recruit brochure 2016 [low-res]bdo grad recruit brochure 2016 [low-res]
bdo grad recruit brochure 2016 [low-res]
 
Plan curricular de bloque
Plan curricular de bloquePlan curricular de bloque
Plan curricular de bloque
 
Secured Video Watermarking Based On DWT
Secured Video Watermarking Based On DWTSecured Video Watermarking Based On DWT
Secured Video Watermarking Based On DWT
 
Guía de trabajo 4° año dibujo técnico
Guía de trabajo 4° año dibujo técnicoGuía de trabajo 4° año dibujo técnico
Guía de trabajo 4° año dibujo técnico
 
İDİL VARDAR CV-ingilizce
İDİL VARDAR CV-ingilizceİDİL VARDAR CV-ingilizce
İDİL VARDAR CV-ingilizce
 
Conflicto y oportunidad en la empresa familiar
Conflicto y oportunidad en la empresa familiarConflicto y oportunidad en la empresa familiar
Conflicto y oportunidad en la empresa familiar
 
pptx del Salto alto estilo fosbury
pptx del Salto alto estilo fosburypptx del Salto alto estilo fosbury
pptx del Salto alto estilo fosbury
 
Planificacion de bloque5 octavo
Planificacion de bloque5  octavoPlanificacion de bloque5  octavo
Planificacion de bloque5 octavo
 
Languagelab 1.2 - Long Monophthongs
Languagelab 1.2 - Long MonophthongsLanguagelab 1.2 - Long Monophthongs
Languagelab 1.2 - Long Monophthongs
 
Türkiye açısından Avrupa birliği'nin önemi
 Türkiye açısından Avrupa birliği'nin önemi Türkiye açısından Avrupa birliği'nin önemi
Türkiye açısından Avrupa birliği'nin önemi
 
Tema 1: Antecedentes Históricos del estudio de las enfermedades
Tema 1: Antecedentes Históricos del estudio de las enfermedadesTema 1: Antecedentes Históricos del estudio de las enfermedades
Tema 1: Antecedentes Históricos del estudio de las enfermedades
 
Scatter Plots
Scatter PlotsScatter Plots
Scatter Plots
 
Kaко је живјела моја прабака,прађед, бака
Kaко је живјела моја прабака,прађед, бакаKaко је живјела моја прабака,прађед, бака
Kaко је живјела моја прабака,прађед, бака
 
Sujets anglais bac_a2_2013
Sujets anglais bac_a2_2013Sujets anglais bac_a2_2013
Sujets anglais bac_a2_2013
 

Similar to Lesson4 know real estate

FixFlipStategyGuide
FixFlipStategyGuideFixFlipStategyGuide
FixFlipStategyGuide
Ken Meyer
 
Real estate slides
Real estate slidesReal estate slides
Real estate slides
Stephen Akintayo
 
Real Estate Investing
Real Estate Investing Real Estate Investing
Real Estate Investing
NewEntertaint
 
Why Real Estate Is A Good Investment?
Why Real Estate Is A Good Investment?Why Real Estate Is A Good Investment?
Why Real Estate Is A Good Investment?
isaac2knowles
 
Real Estate Investing.pdf
Real Estate Investing.pdfReal Estate Investing.pdf
Real Estate Investing.pdf
SamanirSanglir
 
7 Tips for Making a Profitable Property Investment
7 Tips for Making a Profitable Property Investment7 Tips for Making a Profitable Property Investment
7 Tips for Making a Profitable Property Investment
anyproperty forcash
 
Real estate investing
Real estate investingReal estate investing
Real estate investing
Flora Runyenje
 
7 Tips for Real Estate Investors
7 Tips for Real Estate Investors7 Tips for Real Estate Investors
7 Tips for Real Estate Investors
Satyam Properties, Rishikesh
 
10 mistakes to avoid in real estate investing
10 mistakes to avoid in real estate investing10 mistakes to avoid in real estate investing
10 mistakes to avoid in real estate investing
The Real Estate CONNECT
 
How to earn profit in real estate investing
How to earn profit in real estate investingHow to earn profit in real estate investing
How to earn profit in real estate investing
The Real Estate CONNECT
 
Property-Investors-Guide David Scouller
Property-Investors-Guide David ScoullerProperty-Investors-Guide David Scouller
Property-Investors-Guide David Scouller
David Scouller
 
Zack childress
Zack childressZack childress
Zack childress
Bipul Kar
 
How to Flip Condos and Houses
How to Flip Condos and HousesHow to Flip Condos and Houses
How to Flip Condos and Houses
KMC Savills, Inc.
 
14 Things Every Investor Should Know About Commercial Real Estate
14 Things Every Investor Should Know About Commercial Real Estate14 Things Every Investor Should Know About Commercial Real Estate
14 Things Every Investor Should Know About Commercial Real Estate
Katchen Company
 
How To Start Flipping Houses in 2022
How To Start Flipping Houses in 2022How To Start Flipping Houses in 2022
How To Start Flipping Houses in 2022
Jake Widmer
 
Diane turton princeton speach investing in real estate
Diane turton princeton speach investing in real estateDiane turton princeton speach investing in real estate
Diane turton princeton speach investing in real estate
Jennifer Pricci
 
Real estate investment
Real estate investmentReal estate investment
Real estate investment
kshitijSethi7
 
Essential Questions to Ask When Considering Selling vs. Renting
Essential Questions to Ask When Considering Selling vs. RentingEssential Questions to Ask When Considering Selling vs. Renting
Essential Questions to Ask When Considering Selling vs. Renting
Center Street Lending
 
Could a franchise be the right way to grow your real estate business?
Could a franchise be the right way to grow your real estate business?Could a franchise be the right way to grow your real estate business?
Could a franchise be the right way to grow your real estate business?
John Triplett
 
Short Sale Presentation
Short Sale PresentationShort Sale Presentation
Short Sale Presentation
BChristo
 

Similar to Lesson4 know real estate (20)

FixFlipStategyGuide
FixFlipStategyGuideFixFlipStategyGuide
FixFlipStategyGuide
 
Real estate slides
Real estate slidesReal estate slides
Real estate slides
 
Real Estate Investing
Real Estate Investing Real Estate Investing
Real Estate Investing
 
Why Real Estate Is A Good Investment?
Why Real Estate Is A Good Investment?Why Real Estate Is A Good Investment?
Why Real Estate Is A Good Investment?
 
Real Estate Investing.pdf
Real Estate Investing.pdfReal Estate Investing.pdf
Real Estate Investing.pdf
 
7 Tips for Making a Profitable Property Investment
7 Tips for Making a Profitable Property Investment7 Tips for Making a Profitable Property Investment
7 Tips for Making a Profitable Property Investment
 
Real estate investing
Real estate investingReal estate investing
Real estate investing
 
7 Tips for Real Estate Investors
7 Tips for Real Estate Investors7 Tips for Real Estate Investors
7 Tips for Real Estate Investors
 
10 mistakes to avoid in real estate investing
10 mistakes to avoid in real estate investing10 mistakes to avoid in real estate investing
10 mistakes to avoid in real estate investing
 
How to earn profit in real estate investing
How to earn profit in real estate investingHow to earn profit in real estate investing
How to earn profit in real estate investing
 
Property-Investors-Guide David Scouller
Property-Investors-Guide David ScoullerProperty-Investors-Guide David Scouller
Property-Investors-Guide David Scouller
 
Zack childress
Zack childressZack childress
Zack childress
 
How to Flip Condos and Houses
How to Flip Condos and HousesHow to Flip Condos and Houses
How to Flip Condos and Houses
 
14 Things Every Investor Should Know About Commercial Real Estate
14 Things Every Investor Should Know About Commercial Real Estate14 Things Every Investor Should Know About Commercial Real Estate
14 Things Every Investor Should Know About Commercial Real Estate
 
How To Start Flipping Houses in 2022
How To Start Flipping Houses in 2022How To Start Flipping Houses in 2022
How To Start Flipping Houses in 2022
 
Diane turton princeton speach investing in real estate
Diane turton princeton speach investing in real estateDiane turton princeton speach investing in real estate
Diane turton princeton speach investing in real estate
 
Real estate investment
Real estate investmentReal estate investment
Real estate investment
 
Essential Questions to Ask When Considering Selling vs. Renting
Essential Questions to Ask When Considering Selling vs. RentingEssential Questions to Ask When Considering Selling vs. Renting
Essential Questions to Ask When Considering Selling vs. Renting
 
Could a franchise be the right way to grow your real estate business?
Could a franchise be the right way to grow your real estate business?Could a franchise be the right way to grow your real estate business?
Could a franchise be the right way to grow your real estate business?
 
Short Sale Presentation
Short Sale PresentationShort Sale Presentation
Short Sale Presentation
 

Recently uploaded

Rams Garden Bahcelievler - Istanbul - ListingTurkey
Rams Garden Bahcelievler - Istanbul - ListingTurkeyRams Garden Bahcelievler - Istanbul - ListingTurkey
Rams Garden Bahcelievler - Istanbul - ListingTurkey
Listing Turkey
 
GT234 CADASTRAL SURVEYING gggggggggg.ppt
GT234 CADASTRAL SURVEYING gggggggggg.pptGT234 CADASTRAL SURVEYING gggggggggg.ppt
GT234 CADASTRAL SURVEYING gggggggggg.ppt
leonardmichael1
 
How to keep your Home naturally Cool and Warm
How to keep your Home naturally Cool and WarmHow to keep your Home naturally Cool and Warm
How to keep your Home naturally Cool and Warm
Vinra Construction
 
Deutsche EuroShop | Company Presentation | 06/24
Deutsche EuroShop | Company Presentation | 06/24Deutsche EuroShop | Company Presentation | 06/24
Deutsche EuroShop | Company Presentation | 06/24
Deutsche EuroShop AG
 
SVN Live 6.10.24 Weekly Property Broadcast
SVN Live 6.10.24 Weekly Property BroadcastSVN Live 6.10.24 Weekly Property Broadcast
SVN Live 6.10.24 Weekly Property Broadcast
SVN International Corp.
 
Recent Trends Fueling The Surge in Farmhouse Demand in India
Recent Trends Fueling The Surge in Farmhouse Demand in IndiaRecent Trends Fueling The Surge in Farmhouse Demand in India
Recent Trends Fueling The Surge in Farmhouse Demand in India
Farmland Bazaar
 
HollandRow_17x11_Insert_Floorplan_Feature sheet.pdf
HollandRow_17x11_Insert_Floorplan_Feature sheet.pdfHollandRow_17x11_Insert_Floorplan_Feature sheet.pdf
HollandRow_17x11_Insert_Floorplan_Feature sheet.pdf
VickyAulakh1
 
制作(ucr毕业证书)加州大学河滨分校毕业证学历学位证书原版一模一样
制作(ucr毕业证书)加州大学河滨分校毕业证学历学位证书原版一模一样制作(ucr毕业证书)加州大学河滨分校毕业证学历学位证书原版一模一样
制作(ucr毕业证书)加州大学河滨分校毕业证学历学位证书原版一模一样
z5h13yqc
 
G+10 apartment 1- Sustainable apartment building.pdf
G+10 apartment 1- Sustainable apartment building.pdfG+10 apartment 1- Sustainable apartment building.pdf
G+10 apartment 1- Sustainable apartment building.pdf
hawifitumaed
 
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus o...
Presentation to Windust Meadows HOA Board of Directors June 4, 2024:  Focus o...Presentation to Windust Meadows HOA Board of Directors June 4, 2024:  Focus o...
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus o...
Joseph Lewis Aguirre
 
原版制作(Greenwich毕业证书)格林威治大学毕业证PDF成绩单一模一样
原版制作(Greenwich毕业证书)格林威治大学毕业证PDF成绩单一模一样原版制作(Greenwich毕业证书)格林威治大学毕业证PDF成绩单一模一样
原版制作(Greenwich毕业证书)格林威治大学毕业证PDF成绩单一模一样
a7xjm8n4
 
The KA Housing - Catalogue - Listing Turkey
The KA Housing - Catalogue - Listing TurkeyThe KA Housing - Catalogue - Listing Turkey
The KA Housing - Catalogue - Listing Turkey
Listing Turkey
 
One20 North Vancouver Floor Plans by Three Shores Development.
One20 North Vancouver Floor Plans by Three Shores Development.One20 North Vancouver Floor Plans by Three Shores Development.
One20 North Vancouver Floor Plans by Three Shores Development.
VickyAulakh1
 
Rixos Tersane Istanbul Residences Brochure_May2024_ENG.pdf
Rixos Tersane Istanbul Residences Brochure_May2024_ENG.pdfRixos Tersane Istanbul Residences Brochure_May2024_ENG.pdf
Rixos Tersane Istanbul Residences Brochure_May2024_ENG.pdf
Listing Turkey
 
Gurgaon Industrial Business Association.pdf
Gurgaon Industrial Business Association.pdfGurgaon Industrial Business Association.pdf
Gurgaon Industrial Business Association.pdf
jwhrsngh23
 
Hawthorn Module 1 Coverted to Slide Show - 04.06.2024.docx
Hawthorn Module 1 Coverted to Slide Show - 04.06.2024.docxHawthorn Module 1 Coverted to Slide Show - 04.06.2024.docx
Hawthorn Module 1 Coverted to Slide Show - 04.06.2024.docx
anothershaneroberts
 
Things to Consider When Selling Your House - Summer 2024 Edition
Things to Consider When Selling Your House - Summer 2024 EditionThings to Consider When Selling Your House - Summer 2024 Edition
Things to Consider When Selling Your House - Summer 2024 Edition
Tom Blefko
 
Serviced Apartment Ho Chi Minh For Rental
Serviced Apartment Ho Chi Minh For RentalServiced Apartment Ho Chi Minh For Rental
Serviced Apartment Ho Chi Minh For Rental
GVRenting
 
Sense Levent Kagithane Catalog - Listing Turkey
Sense Levent Kagithane Catalog - Listing TurkeySense Levent Kagithane Catalog - Listing Turkey
Sense Levent Kagithane Catalog - Listing Turkey
Listing Turkey
 
Victory by Maskeen Group Surrey Floor plans June 2024 PDF
Victory by Maskeen Group Surrey Floor plans June 2024 PDFVictory by Maskeen Group Surrey Floor plans June 2024 PDF
Victory by Maskeen Group Surrey Floor plans June 2024 PDF
VickyAulakh1
 

Recently uploaded (20)

Rams Garden Bahcelievler - Istanbul - ListingTurkey
Rams Garden Bahcelievler - Istanbul - ListingTurkeyRams Garden Bahcelievler - Istanbul - ListingTurkey
Rams Garden Bahcelievler - Istanbul - ListingTurkey
 
GT234 CADASTRAL SURVEYING gggggggggg.ppt
GT234 CADASTRAL SURVEYING gggggggggg.pptGT234 CADASTRAL SURVEYING gggggggggg.ppt
GT234 CADASTRAL SURVEYING gggggggggg.ppt
 
How to keep your Home naturally Cool and Warm
How to keep your Home naturally Cool and WarmHow to keep your Home naturally Cool and Warm
How to keep your Home naturally Cool and Warm
 
Deutsche EuroShop | Company Presentation | 06/24
Deutsche EuroShop | Company Presentation | 06/24Deutsche EuroShop | Company Presentation | 06/24
Deutsche EuroShop | Company Presentation | 06/24
 
SVN Live 6.10.24 Weekly Property Broadcast
SVN Live 6.10.24 Weekly Property BroadcastSVN Live 6.10.24 Weekly Property Broadcast
SVN Live 6.10.24 Weekly Property Broadcast
 
Recent Trends Fueling The Surge in Farmhouse Demand in India
Recent Trends Fueling The Surge in Farmhouse Demand in IndiaRecent Trends Fueling The Surge in Farmhouse Demand in India
Recent Trends Fueling The Surge in Farmhouse Demand in India
 
HollandRow_17x11_Insert_Floorplan_Feature sheet.pdf
HollandRow_17x11_Insert_Floorplan_Feature sheet.pdfHollandRow_17x11_Insert_Floorplan_Feature sheet.pdf
HollandRow_17x11_Insert_Floorplan_Feature sheet.pdf
 
制作(ucr毕业证书)加州大学河滨分校毕业证学历学位证书原版一模一样
制作(ucr毕业证书)加州大学河滨分校毕业证学历学位证书原版一模一样制作(ucr毕业证书)加州大学河滨分校毕业证学历学位证书原版一模一样
制作(ucr毕业证书)加州大学河滨分校毕业证学历学位证书原版一模一样
 
G+10 apartment 1- Sustainable apartment building.pdf
G+10 apartment 1- Sustainable apartment building.pdfG+10 apartment 1- Sustainable apartment building.pdf
G+10 apartment 1- Sustainable apartment building.pdf
 
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus o...
Presentation to Windust Meadows HOA Board of Directors June 4, 2024:  Focus o...Presentation to Windust Meadows HOA Board of Directors June 4, 2024:  Focus o...
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus o...
 
原版制作(Greenwich毕业证书)格林威治大学毕业证PDF成绩单一模一样
原版制作(Greenwich毕业证书)格林威治大学毕业证PDF成绩单一模一样原版制作(Greenwich毕业证书)格林威治大学毕业证PDF成绩单一模一样
原版制作(Greenwich毕业证书)格林威治大学毕业证PDF成绩单一模一样
 
The KA Housing - Catalogue - Listing Turkey
The KA Housing - Catalogue - Listing TurkeyThe KA Housing - Catalogue - Listing Turkey
The KA Housing - Catalogue - Listing Turkey
 
One20 North Vancouver Floor Plans by Three Shores Development.
One20 North Vancouver Floor Plans by Three Shores Development.One20 North Vancouver Floor Plans by Three Shores Development.
One20 North Vancouver Floor Plans by Three Shores Development.
 
Rixos Tersane Istanbul Residences Brochure_May2024_ENG.pdf
Rixos Tersane Istanbul Residences Brochure_May2024_ENG.pdfRixos Tersane Istanbul Residences Brochure_May2024_ENG.pdf
Rixos Tersane Istanbul Residences Brochure_May2024_ENG.pdf
 
Gurgaon Industrial Business Association.pdf
Gurgaon Industrial Business Association.pdfGurgaon Industrial Business Association.pdf
Gurgaon Industrial Business Association.pdf
 
Hawthorn Module 1 Coverted to Slide Show - 04.06.2024.docx
Hawthorn Module 1 Coverted to Slide Show - 04.06.2024.docxHawthorn Module 1 Coverted to Slide Show - 04.06.2024.docx
Hawthorn Module 1 Coverted to Slide Show - 04.06.2024.docx
 
Things to Consider When Selling Your House - Summer 2024 Edition
Things to Consider When Selling Your House - Summer 2024 EditionThings to Consider When Selling Your House - Summer 2024 Edition
Things to Consider When Selling Your House - Summer 2024 Edition
 
Serviced Apartment Ho Chi Minh For Rental
Serviced Apartment Ho Chi Minh For RentalServiced Apartment Ho Chi Minh For Rental
Serviced Apartment Ho Chi Minh For Rental
 
Sense Levent Kagithane Catalog - Listing Turkey
Sense Levent Kagithane Catalog - Listing TurkeySense Levent Kagithane Catalog - Listing Turkey
Sense Levent Kagithane Catalog - Listing Turkey
 
Victory by Maskeen Group Surrey Floor plans June 2024 PDF
Victory by Maskeen Group Surrey Floor plans June 2024 PDFVictory by Maskeen Group Surrey Floor plans June 2024 PDF
Victory by Maskeen Group Surrey Floor plans June 2024 PDF
 

Lesson4 know real estate

  • 1. "KNOW REAL ESTATE"THINGS TO KNOW BEFORE YOU BUY THESE LAND Lesson #4
  • 2. For the first time buyer: Treat your property as home not an investment. The safety and security a home provides is manifold compared to the rental you have to pay and the short notices on which land owners can ask you to move out. Stay invested for a period of 5 to 7 years and you would have certainly doubled your capital. Use the wealth created to re­invest into the new home and also start investing small into say Plots, smaller apartments etc
  • 3. For the small Investor: Do not compare this to stock market. Irrespective of the boom and bust cycle you will get very good deals and good deals are not always with the big developer or in fancy projects. Trick of finding a good deal is: a. Work closely with realtors who are strong in particular suburbs (do not try to save on brokerage – that’s the cost of getting a great deal). When you send the word be clear on budget, size of unit, rental (always take a unit which has high rental potential), loan planned, age of the building and the location. For ex: Did you know that older CBD apartments are priced equal or less than the price of older apartments in the Major suburbs. Rentals however are always higher in CBD.
  • 4. For the small Investor: Maintain reasonable liquidity so that in the event of a tenant moving out you have sufficient liquidity to service loan, refund tenant deposits, invest into maintenance and hold on for few months to either liquidate or re­tenant. The advantage of having some cash reserve is that i. You can wait to achieve the target price (realistic however!) ii. You don’t have to give it to any tenant iii. To a tenant refusing to pay increment you can call his bluff Quick Flipping – you have to be extremely fortunate to be able to achieve this. Don't ever try to invest into real estate and planning to make money with a quick flip.
  • 5. For the Big Investor: This is not loan business where you give money and make 20% return. You may have been lucky a couple of times making such fixed returns, but be ready to lose your capital. The sure fire ways to make mid teens returns are: Invest with good developers, meaning professional guys with strong team and who have cycle experience. Real estate cycles can be painfully difficult, professionals who have experienced it would be realistic in their approach. Real estate is not the Tech Unicorn story where a start up comes and achieves incredible valuation. This is like the Rocky Movie – Getting hit and keep moving forward to win.
  • 6. For the Big Investor: Structure your investment in a manner that there is incentive for the developer also to work with you. Establish a minimum return expectation (typically bank finance+5%) and then always share the upside with the developer. This way he will work hard to deliver you the upside while earning for himself. The moment it is a burden he will short shaft you by realising part money in cash etc. Trend spotting is a bad thing in real estate. Do not try and follow trends of investing in logistics park, buyback schemes, double your money in 3 years.