You cannot become an expert in real estate investing with a few YouTube videos; this is the truth, not a chance to bash you. The proliferation of YouTube videos, television programs and blog posts that “teach” real estate investing makes it look like something anybody can do alone once they have enough money.
Nothing else can be far from the truth.
Information overload, thanks to the internet, does not mean you can jump into real estate. As an investor, the expertise of professionals is invaluable.
Robert Kiyosaki, the bestselling author of RICH DAD, POOR DAD, says that professionals help an investor make sound and financially wise decisions.
The real estate market is like every financial market; there are ups and downs.
Why do you need a professional?
The reasons are simple.
In this article, we would be highlighting a few reasons why riding solo as an investor is a bad idea.
First, there are many documents to be signed and understood when it comes to real estate. If you want to buy one of the off plan projects by Emaar, such as the Emaar Beachfront apartments or Emaar Beach Isle you need to understand Dubai real estate laws.
A professional real estate agent would walk you through the rules involved, show you the loopholes and traps that you must avoid.
The documents to be signed would be filled with legal jargon that you may not understand. The messages between the lines, the penalties not clearly understood by a layman would fly over your head, and you’ll fall prey.
Secondly, real estate deals with taxes mortgages. You would need a real estate tax expert to walk you through the tax laws and how the mortgage plans work. A tax expert would help you draw a tax plan that considers your financial power. He/she would also help you deal with possible tax problems that a neophyte like you might not be aware of.
Third, the volatility of the market isn’t something a newbie can predict correctly. A professional would let you know when the market is likely to have a bullish season and when it would have a bear season. Of course, there are no certainties to these things, but with a professional, you are less likely to make huge losses because they know and understand the market well.
If they get it wrong, their professional experience would be needed to navigate through the murky waters.
Fourth, a professional would help you buy properties that would make you money. For many investors, usually, the first-timers, purchasing properties is an emotional endeavour. They want to buy houses that they like, properties that meet their fantasies without much thought to the market size of the investment.
Many think a right home in a good location would automatically bring profit. However, that’s not true.
A professional would examine the factors that would make a property sell or not, would take in real estate trends, the buyers or renters’ behaviours and a host of other elements. This data would help in advising the investor adequately on the properties to invest in and the possible Return On Investment (ROI).
The flipping game mostly lures first-time real estate investors. For most, they want to buy and sell in the next few months. Some properties are best as long term investments while others aren’t. Some are good for rentals while others aren’t. A professional would guide an investor appropriately, so the investor makes as much as possible from the investment.