Texas has a reputation for bucking the economic trend that the rest of the country tends to follow. Its strong underlying economy and job market momentum gets the attention of real estate investors worldwide.
Real estate services company Jones Lang LaSalle mentions Austin as one of the world’s top cities for commercial real estate investment. Investors purchased 1.8 million square feet of commercial space in Houston last year and more of the same is expected this year. According to the National Association of Realtors, Canadian buyers list Texas as one of their favorite states in which to purchase investment properties.
If you are a real estate investor — or want to be one — here are a few tips to follow.
Knowledge Is King
Educate yourself about real estate investing by consulting with experts who have already paved the way in this convoluted and constantly changing field. Whether you meet with local investors or do your research online, learn from their successes and their failures. Knowledge is a key to your success in this business.
Create a Plan and Follow It
If you do not plan, you are planning to fail. Decide what you hope to accomplish, what each step of your plan will be and what it will cost, and how much money you are willing to risk. If you lose your shirt, do you have another one to wear?
Take Baby Steps
Do not jump in with both feet without first testing the market. Successful real estate investors start small and slowly build their empires. Focus on each step of your plan and do not skip ahead. Do not allow yourself to be caught up in the excitement of the sale; stay alert for anything unusual or questionable.
Be a Detective
For each investment property you consider, spend as much time as you need learning everything you can about it. Carefully analyze its location, neighboring properties, local zoning rules and future plans for the area. You should be an expert on that property before you purchase it.
Hire a Real Estate Lawyer
Whether you wish to invest in apartment buildings, commercial office space, or residential homes, each type of property has its different laws and rules. Head off disputes over financing, title issues, or contracts by consulting an attorney experienced in the intricacies of real estate law.