To acquire a massive personal fortune by means of real estate may seem beyond the scope of reality, but it is possible. If you have built up a decent nest egg and are wondering what to do next, when the crash comes when preparing for the worst, trying to position yourself for the next boom when preparing for the best, or where to seek to find an investment deal in real estate that is solid, remember that you need to keep it simple and give close attention to the following three basic concepts.
You Need to Maintain Conservative Ratios
If you are buying or building real estate in order to hold it long-term, you need to ensure that property is going to have a good cash flow, even if the result is utilizing more equity for a slightly lower return. It is important to maintain a conservative debt service ratio because over-leveraging runs a greater risk of total loss of investment. Avoiding loss is often a preferable route to wealth accumulation in real estate than seeking high yields with every investment.
You Cannot Underestimate the Importance of Location
Traditionally, location is said in itself to be the trio of most important things. You need to remain close to town, remain close to services, and remain close to the correct level of money or wealth. For example, do not try to place a low-income housing project within the posh Beverly Hills, and do not build multi-million dollar condominiums in rural Alaska. The point here is that your properties should blend in with the territory that surrounds them. When it comes to location, do not try to be someone who bucks the trend.
Consider Supply and Demand
Many investors can easily make the mistake of ignoring the concept of supply and demand; they can see it as easy to avoid and easy to quantify. But there is a basis upon which to act in order to not make this type of mistake. Find the information, then pay attention to it. If there are more projects entering an area than their demand exists for it, then move on. Many people find themselves trying to compete in places where development is running rampant, with people justifying their deals or working to do so because they believe their projects are superior to the several other similar ones under construction.
Effective communication is a vital part of the relationship between a real estate agent and a client. Conversations may include confidential information, crucial deadlines and honest discussions about finances.
In recent years, options for communication have exploded. Digital forms of communication now dominate modern culture. Real estate professionals and their clients no longer need to rely on phone calls and face-to-face meetings to conduct business. Emails, texts, FaceTime and various social media platforms are now at their fingertips.
While having multiple forms of communication available can be useful, it can also overwhelm the client and the real estate agent. Several suggestions for clearing up communication confusion can be found here. Read on for a sampling of communication tips focused on enhancing the relationship between the real estate agent and the client.
Although communication is evolving, telephone conversations remain a primary way for real estate professionals and their clients to stay in touch. When calling their real estate agent, a client should leave a concise message if the agent doesn’t answer. A client should also avoid calling the agent multiple times. An attentive real estate agent will return the call when they are in a position to direct their full attention toward their client’s concerns. This etiquette rule also applies to texts, emails, and social media messages.
Respect of Time
Real estate agents are focused on their clients and want to be available to them as much as possible. However, it is important to recognize that agents need to manage their time. Other clients, work-related responsibilities, family responsibilities, and personal needs are also a part of an agent’s life. Phone calls, texts, emails or social media messages sent by a client in the late evening or during holidays may not receive a response until the next day.
Discuss Communication Needs Initially
Discussing an effective communication strategy before hiring a real estate agent can eliminate potential misunderstandings. It is important for the agent and client to decide on a communication method that they are mutually comfortable with and will respond to promptly. It is also critical for both parties to agree upon a form of communication that will work best for confidential conversations or the transfer of private information.
The real estate industry is a highly evolving industry with markets shifting from day to day in terms of interest rates, economic drivers, and regulatory policies. As an investor in the real estate industry, planning and goal setting is an important strategy that ensures your investments stay in tandem with the sector’s dynamism. Whenever setting realistic goals, emphasis should be put on ensuring that your investments are well optimized and aligned with future trends in the industry. Here are some of the things to remember when setting such smart real estate goals.
Planning For Change
The real estate industry is highly dynamic, with changes being introduced regularly targeting at ensuring that the sector stays dynamic and stable. Some of the changes in the industry have led to the introduction of technological advances such as virtual and augmented reality in the design and construction of real estate properties. Slotting-in a room for such change ensures that your visions and real estate creations will have the opportunity to absorb the said changes once they are introduced.
Real estate is shrouded in various risks that should be well planned for whenever implementing a strategy. Risk mitigation can be approached in two diverse ways including diversification of your real estate investments in different markets. You can also approach risk mitigation in your investments by planning to minimize debt accumulation.
Watch Out For Coming Events
Real estate markets are highly volatile and affected by various periodic events. Events such as presidential elections generally cause a temporary slowdown in the real estate industry. You should, therefore, limit as much as possible your developments around the time of elections and other events that may negatively affect your investments.
Use a Methodical Approach
When setting your real estate goals, you should focus on creating those which can be statistically justified and attained. Discipline in goal setting is important as it ensures that you set realistic targets which you can meet within your desired duration.
Watch The Current Market Conditions
Whenever strategizing in the real estate industry, nothing beats proper preparation than giving a careful watch on the current market conditions. Current market trends give you an idea on critical entities such as interest rates, availability of real estate properties, the market’s purchasing power, and the general trend in the market. This helps you stay informed and advised enough to ensure any action you take is smart.
About Avraham Glattman
Avraham Glattman is the owner of First American Properties Group, a real estate business based in New York City, New York.
Avraham brings over 26 years of experience working as a real estate agent in the city, where he continues to work today. He graduated from Newport University with a Bachelor’s Degree in Business Administration and Management and remained at the university to attain his Masters of Business Administration (M.B.A.). After graduation, he jumped straight into the real estate field in 1992 in the greater New York City area. Throughout his career, Avraham has explored listings across the New York area, keeping a detailed account of the locations, pricing and comparable properties in the housing market.
After gaining a wealth of knowledge about the real estate marketing in New York, Avraham Glattman decided to take it a step further by creating First American Properties Group with his longtime business partner, Pete Jacov in 2008. First American Properties is a real estate and development company that services the five boroughs of New York. The company currently owns residential and commercial properties in Queens, Downtown Brooklyn, Harlem, and Manhattan. The company focuses on monitoring the growth and development in different areas of the city, so they can work to establish more patterns of growth and help revitalize the area.
While monitoring the different areas of New York City, Avraham Glattman consistently keeps an eye out on up-and-coming neighborhoods that he could potentially invest in. For example, after seeing Harlem, Avraham was immediately impressed by the neighborhood’s charm, leading him to invest in properties in the area. With a convenient location next to the subway and charming business like music venues in the area, it was not hard to see what attracted Avraham to the area.
Today, Avraham Glattman continues to find new investments with First American Properties Group, alongside his business partner, Pete Jacov. Together, they are working towards the goals that they set for First American Properties Group. The goals include acquiring property in the Harlem area to renovate and sell, as well as acquiring properties in all five boroughs.
Avraham was borned and raised in Israel, where he went graduated high school. Not long after, he served in the Israeli army for three years, before he was sent to the United States to work with an Israeli newspaper in Brooklyn, NY. Not long after making the move to New York, Avraham met the woman that would become his wife in 1991. Together, they have three children and two dogs.
In his spare time, Avraham Glattman enjoys spending his time with his wife, three children, and two dogs, and loves to explore new parts of New York City. In addition to his work as co-owner of First American Properties Group, Avraham also finds time to support his children in their various sports events, concerts, and school activities. Avraham’s incredible dedication to both his work and family brings him immense happiness and purpose each day.
To learn more about who Avraham Glattman is, visit AvrahamGlattmanNewYork.com.