There is something far more important than location if you’re going to be investing in property and that is real estate education. If you’re planning on getting a foot on the property ladder, on the way to financial freedom as an investor, you will have heard that old chestnut, “location, location, location.” This little bit of advice has been the most proffered piece of wisdom for decades and it’s good and true.
But savvy investors know that before you can focus on location, you must be well versed with the industry that you’re about to enter. Without a doubt, location plays a critical part in the success of any property deal but can it be said it’s the most important factor?
There are few things more crucial to an investor than having a comprehensive knowledge of the business of investing in property. Industry professionals will tell you that an intelligent approach is in learning everything you can about the sector, the local market and current conditions where your target is located.
It takes real estate knowledge
Not getting real estate knowledge beforehand has caused many newbies to lose money and time as they get the education they need at the coalface. Other less fortunate, have discovered that discounting knowledge and plunging headlong into the market, has bankrupted them on their first deal.
Let’s examine location. There is empirical evidence that location is critical, but how will you know where to look for the best cities, neighborhoods, areas, and properties? What is the fundamental know-how you need to recognize the diamond in the rubble? Investing in your real estate education will give you the confidence to find the property, set up the deal and successfully execute it.
There are some aspiring property investors who have already bankrupted themselves, paying cash for properties they can’t make use of.
Others have gotten themselves into sticky legal messes. Real estate, on an investment level, is a mess of legal regulations and requirements.
What’s the next real estate hotspot where you should be investing? What nitty-gritties make a city great to invest in? How will you know the best zip codes? How can you know what to look for if you haven’t put in the work by learning the ropes first?
Time versus money
We’re all running out of time but most of us don’t think twice when we use our time to make money. The time you spend in getting a real estate education is money back in your pocket and the same goes for money invested in learning your craft.
There are myriad methods for learning everything about the real estate industry; an online program, mentor, coach, Realtor, or turnkey real estate investment program. Obviously results will differ, based on the program and the person and how each uses his new-found knowledge.
You only have to use your new real estate education to make an extra $5000 a month and you’ll have $60,000 at the end of the year. But that’s a conservative estimate.
The big threat
It’s the uneducated investors and ‘professionals’ that pose the leading threat to the American real estate market. By buying unwisely and managing irresponsibly, they bring the whole sector into disrepute.
Take the time to learn the ins and outs of investment and real estate. Would you trust you legal work to an unqualified student? Lawyers spend years learning their business. You can’t be a great property investor if you don’t master your field. A few weeks or months spent learning real estate is well worth the work before putting all that time and money on the line.