Real estate remains an attractive investment opportunity. Businesses will always need office space. People are always looking to rent apartments. Real estate, both commercial and residential appeal to investors because they promise steady returns on investment well being considered safer than the stock market. But Maarten de Jeu, an expert in corporate strategy, says there are some key steps to success all investors ought to follow.
Revenue comes from two sources: property value increases and rent. They’ll also require more Capital beyond the initial investment. Renovations, for example, maybe essential before tenants can move in. This is true for commercial and residential properties, but de Jeu notes that there are key differences.
The initial capital needed for commercial real estate investing is higher than residential. This might cut down on competition, but those able to stick it out will find that renting out these properties will assist in covering insurance costs, taxes, maintenance of that property.
How does an investor get their start with real estate?
Primarily, de Jeu considers all business to be centered around people. Investors must be concerned with numbers in order to make decisions, but working in real estate means reaching out to people constantly.
Networking events were created to connect investors to these kinds of people. Getting to better know those who work in real estate locally can inform an investor and how business works in the area. Fostering a relationship with such people can prove to be valuable later on in the investment process. De Jeu points out that an investor can never know when they’ll need to reach out to someone to help them make a decision.
How to make use of such relationships, investors need to study. Being informed, de Jeu says, it’s something every investor should be focused on. Knowing all they can about a property, the market, and the players involved we’ll make those professional networks more valuable. By knowing where they need help, an investor can identify which person in that network to contact and better inform their opinions.
This is how an investor starts a risk assessment. Next, they will have to take into account what the area is like, the state of the property, what needs fixing, and the value of the area. The only way to know what the damage to the property is like, and know what might go into renovations, an investor will have to attend open houses, really get to know the area, and consult with others to know what potential returns might be like.
But before taking another step, de Jeu says an investor ought to consult their comparables. This is when an investor looks at similar properties, in like neighborhoods, and compares them with the prospective investors to determine if the price being set is fair.
However an investor proceeds, de Jeu says all investors need to proceed with caution. While real estate diversifies a portfolio and makes for a safer option, investors need to rely on others and thorough research to make sure that their effort is worth it in the end. Learn more: https://maartendejeu.weebly.com/
About Maarten de Jeu:
Maarten de Jeu is a corporate development strategist and advisor working in Europe and North America. He’s a graduate from the University of Oxford, and with an MBA he was recruited by Aviva plc. First, he works as their Director of Strategy and Corporate Development. Then he joined their London offices as their International Strategy Manager. Later on in his career, de Jeu started consulting for TVDK Management Consultants. There he made inroads with corporate clients like Heinz and Sara Lee when they sought out expansion into international markets. With his Chicago-based organization SVM Business Advisory, de Jeu teaches middling businesses to find their way to expand and reach the international market.