Tips for Investing in Real Estate


Real Estate is a timing game

The first basic tip to become a real estate investor is to save to have an initial capital to invest, but let's take as a starting point that you already have capital saved and you want to take the leap towards adventure to become a real estate investor . However, it is true that it can be an overwhelming process because there are many edges to value and fears to overcome. This is logical since you are risking your capital, but it is not so complicated and it is only a matter of focus, have a roadmap and always remember that the real estate business is in the flows and not in the bricks.


The goal of making real estate profits should not be to accumulate and hold on to property. No. The money must be moved to look for opportunities, produce more and be evaluated against other investment alternatives. If a property generates a lower return than a bank deposit can generate, the best thing is to liquidate it and buy another that generates a higher return.


A risk when investing in real estate is the time it takes for the asset to become liquidity, they are assets that take time to transform into cash and if you need to sell due to an economic emergency you can lose money.


Is my house an investment?


A home of your own is not an investment; for a property to be considered as an investment its sole objective must be to generate returns (money), many claim that a house of its own generates surplus value, but if you live in it, how will it generate money for you?

If you cannot sell or rent it, it is not an investment, in short, living in a house is not the same as living in the house. Do not get attached to the properties and sell them at the best time.


How are profits generated in real estate?


In real estate profits are generated in 3 ways:

• Capital gain: It is the increase in the value of a property over time, with respect to the price you paid for it, for improvements in the area, in the property or other external factor. This profit is only real if you sell the asset, the rest is mere speculation.

• Rent flows.

• Combination of the above.


How many properties should I visit before choosing a possible investment?

The answer must be all possible. Within the search parameters, you must be very clear that you are searching in terms of areas, price, amenities and market niche to which you will offer the asset.


Robert Kiyosaki, the famous author of Padre Rico, Padre Pobre, recommends visiting a thousand houses and only buying one that is a real investment opportunity, now, not all of us have Robert's time to see houses, but the message is that you should visit various options to have reliable data and make a decision based on appropriate criteria.




Questions to ask yourself when choosing a real estate asset:

• What is in the area?

• What public services does the area offer?

• Is it a growing area or has it reached its maximum?

• Do you have public recreation spaces?

• Is it possible to walk to the places or is it necessary to use some form of transport?

• What is the potential market niche?

• Will the area increase in value?

• At what price has it been rented or sold in the past?

• What is the land use?

• What is your legal situation?

• What is your direct competition when selling or renting the property?

• Are there new real estate developments in the area?


These questions can help you have a clearer picture of your possible investment. I hope my article helps you and any questions you have you can send me a message, I will gladly answer you.



#realestate #panama #lawyer #realestatelawyer #investmentlaw #offshoreinvestments #offshorelawyer

56 vistas