Real estate investing is a fascinating industry that can result in big rewards for savvy entrepreneurs. However, it is also an extremely risky business venture when pursued recklessly. With that in mind, highly successful entrepreneur and real estate veteran Andrew Shader has offered some insights into saving money while making wise investments.
In this guide, Andrew Shader will reveal some simple but effective ways of getting the most out of your money. By implementing these proven techniques, you can cut out unnecessary waste and boost your success in the real estate investment industry.
List for Free
Many new real estate investors make the mistake of paying for listings. This tip is one of the most straightforward in our guide. Don’t spend money on listings! List for free instead.
There are plenty of free ways to list properties for yourself or clients. You have enough expenses to manage without adding on advertising fees and listing costs for individual properties. Make the most of popular websites that are designed specifically for listing properties.
Timing Is Everything
As you might expect, the real estate market fluctuates throughout the year. Despite the steady increase in demand for houses over the last year, the market typically peaks in the spring.
If you have the flexibility to do so, wait to list properties until March or April. This strategy may yield more significant profits. On the flip side, you should try to avoid purchasing properties during this seasonal peak and wait until the market “cools.” Doing so can save you thousands and yield more considerable ROIs (returns on investment).
Research
In today’s digital world, you can find virtually everything you ever need to know about a property online. However, uncovering this information will require you to dust off your keyboard and do some research.
Before submitting an offer or listing your property, be sure to find out as much as you can about the market conditions in your area. For example, check to see how much homes in your neighborhood are going for. Also, compare current mortgage rates to ensure that you can get a great deal. By doing your homework, you can make every dollar count for you and your business partners.
Ditch PMI
Private mortgage insurance is a significant source of waste for many investors. The average PMI payment ranges somewhere between 0.5% and 1.0% of the original loan amount. This can leave you forking over thousands of dollars on every property for years on end.
If you really want to get the most bang for your buck, ditch PMI as soon as possible. To do so, make a down payment of 20% when purchasing a property. An alternative is to monitor your home’s value and obtain an appraisal once you have reached the 20% equity threshold. Either way, you can save hundreds and increase your ability to invest in new properties.
Look for Tax Breaks
If you are getting involved in real estate investing, be sure to brush up on state and federal tax laws. The best approach is to partner with an experienced CPA (certified public accountant) to ensure that you take advantage of every tax deduction available. In real estate, you can obtain deductions for paying for licenses, fees, and much more.
As you can see, there are plenty of ways to make your dollar go further and maximize profits in the world of real estate. Andrew Shader has used these proven techniques for years, and you can apply them, too!
About Entrepreneur Andrew Shader
Andrew Shader is an entrepreneur and a successful real estate developer and investor in Fort Lauderdale, Florida. He got his Business Management and Marketing degree from Florida State University. After spending years in the insurance industry, Mr. Shader decided to shift his focus to real estate. Andrew specializes in value-added properties and boosting property value through investment.