Real estate investing is an exciting concept. The idea of investing in a piece of real estate that will pay dividends for years to come is what drives so many to be interested in the space. However, there's a big difference between a real estate investor, and a successful real estate investor.
Successful real estate investors, like investing mogul Ofir Eyal Bar, know that finding success in the industry is an art. Nonetheless, there are three vital steps that you can take to increase your probability of making profits when investing in real estate. Here they are:
Step #1: Be Picky When Making Your Investments
When it's time to make a new investment, Ofir Eyal Bar doesn't make his decision in a day or two. In fact, it can take months until he finds a property that he is willing to buy. Why? Because he knows that buying the right property at the right price is crucial to making a profit, and that finding those properties can take some time.
When searching for your next real estate investment, think outside the box. Instead of just looking at online listings, consider taking a stroll through the community to find the pieces of property for sale that aren't listed online. It's also worth calling lenders to see what REO properties are available in the area.
Ultimately, when making an investment in real estate, it's important to turn every stone, look in every crevice, and make sure that you've had the opportunity to compare all of your options. At the end of the day, the best deals are difficult to find, but they are worth searching for!
Step #2: Choose Your Renovations Wisely
After making a real estate purchase, if you follow the widely accepted, BRRR strategy, it's time to renovate. This is an important step as it will add value to the property, increasing potential rental rates or the potential sale price, while building equity that you can tap into the improve your portfolio.
However, Mr. Bar will tell you that it's not always best to change everything. The reality is that every change that you make to the property will cost you money, and sometimes, the money spent will not equate to improved equity.
For example, changing the color of a carpet will only cost money. Going from a carpet floor to a different color carpet floor is not going to increase the value of the property as a whole. On the other hand, improving appliances in the kitchen could yield multiples of the actions' cost in the equity of the home.
With that said, any time you're going to make a renovation to an investment property, think about how the change is going to affect the value of the property. If you're not going to increase the value by more than it costs to make the renovation, it's not worth your investment to do so.
Step #3: Adopt An Ofir Eyal Bar Thought Process
Ofir Eyal Bar has a passion for finding and closing a deal. That's why, even when he's on vacation, he's looking around for opportunities to make a real estate investment. The truth of the matter is that the most successful investors live and breathe real estate. They think about it in everything they do because they absolutely love the industry.
If you want to become an elite real estate investor, your mindset should match. No matter where you are or what you're doing, keep your eyes peeled for the next great deal as you never quite know when it will come down the line.
The Takeaway
The takeaway here is a relatively simple one. If you want to become a real estate investing mogul like Ofir Eyal Bar, just follow the steps above. Start with finding the right investment property at the right price, move onto making renovations that will improve the value of the property while avoiding those that don't, and always be looking for your next dea. If you can do those three things, chances are that you'll find success in the real estate investing space.