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- May 24, 2022
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5 Tips To Develop Your Real Estate/Commercial Property Business As A Private Investor
As one decides to move into the world of property investment, it’s also very important for the investor to know how to effectively manage his or her property in order not to incur heavy financial losses.
As experts in the Real Estate industry in Ghana, we would like to share with you some few tips as to how to develop and manage your real estate business.
LESSON 1- Develop a Niche
- Develop a niche by specializing in a particular type of property or you may decide to diversify. One can also have a combination of real estate and commercial properties being scattered around various locations. The investor should not loose sight of the fact that the niche can only be calved after a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis has been done.
LESSON 2- Identify High Yielding Properties
- Identify high yielding properties through deep analytical thinking. The analytical thinking comes by considering the property’s price, economic value, and capitalization rate. The capitalization rate is expressed by dividing the property’s operating expenses (e.g. (maintenance cost) by the purchase price. This will help one ascertain the return on investment for the property.
LESSON 3-Dedicate Time to Networking
- Dedicate time to networking by liaising with well-established Real Estate or Property Management companies with rich expertise in the industry or Real Estate Agencies or Associations for ideas and advise. Furthermore, by joining an association, access to incentives by the National, Municipal or Local authorities to the investor become easier. Also going for get-together events open doors for one to connect to potential tenants, get additional properties or even vendors or service providers for maintenance.
LESSON 4-Secure Financing
- One of the main obstacles in the real estate industry is access to finance through loans. One of the options available is to go in for a conventional loan. If the interest on the loan is very high and unsustainable per one’s assessment, then one may consider working with a credible investment partner who can help mobilize resources in order to embark upon the business.
LESSON 5- Invest in Technology
- Information Technological (I.T) investment is key to enhancement of one’s real estate business. Due to tenants/clients wanting to pay their rent and process their documents online, there is the need to build a PROPERTY MANAGEMENT SOFTWARE such as AppFolio, Turbo Tenant, Propertyware, etc that meets one’s goal. Software of this nature keeps lease agreements in one place for easy access, tracks maintenance request and even create financial report that helps track profitability of your business.
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