Becoming a real estate investor is an exciting — albeit, slightly overwhelming — prospect. However, the payoff is huge. As not only can investing in real estate be extremely lucrative, it can be fulfilling as well. No one knows this better than Binish Qureshi. Qureshi is an entrepreneur, real estate developer, and investor based in Virginia Water, United Kingdom. She currently serves as the founder and director of a real estate company called FJ Corporation Ltd. As a successful real estate investor, there is no one better to offer their insight into how to get started in the industry.
Pick the Market That is Right for You
Binish Qureshi claims that choosing your market location is one of the biggest decisions a new real estate investor will make. The market you choose can have a significant impact on the results you see from the investments you make, which is why this decision should not be made lightly. In fact, Qureshi recommends devoting a considerable amount of time to researching various markets across the country you live in, as well as in other countries around the world. If you currently live somewhere with a slow real estate market, then looking elsewhere, to other cities, countries, and even continents might be the right choice for you if you have the ability to do so. If possible, i.e. if you live somewhere with a thriving market, Binish Qureshi recommends staying close to home, as not only are you likely more knowledgeable about the real estate market in your area, but it is easier to manage a property when it is local.
The first step is to look at real estate in your local neighbourhood. If the prices are too high locally, then drive an hour in any direction and explore that neighbourhood. The suburbs of major urban areas (for example, Bromley, Croydon, and Richmond upon Thames are all suburban areas in South London), are often more affordable and thus better locations for real estate investments as they provide both affordable housing and a prime location close to major cities.
Also, keep an open mind as to the type of property you’re looking to invest in. You might plan on investing in a home, but upon further research, you realize that investing in a flat is more feasible and will yield better returns. Finally, when evaluating which country, city, and borough is right for you, be sure to consider a list of criteria. First, consider the big picture factors: the overall state of the economy, population growth trends, and rent/price ratio. Second, think about smaller scale factors, such as walkability, proximity to public transit, school districts, crime rates, local laws and taxes, and overall convenience. All of these factors — both big and small — undoubtedly contribute to the value of the property and thus, the success of the investment.
Build A Reliable Team
According to Binish Qureshi, real estate investing is a team sport. Thus, it requires you as a leader to create a group of qualified and reliable colleagues that you will work with. These do not necessarily have to be employees, but you will need to work with independent contractors or financial and legal advisors in order to ensure that your investments are successful. If you’re unsure of exactly who you will need on your team, Binish Qureshi recommends breaking it down into categories. The first is your support circle, which will consist of a property manager, a solicitor specializing in real estate law, an accountant, and a lender (this could be a mortgage lender, hard money lender, private money lender, or a combination of the three). Next is your service circle. This team is made up of everyone from the electrician to the painter. Essentially it is anyone involved with the upkeep and maintenance of the property that you are investing in. Where is the best place to find your team? Rather than blindly publishing a classified ad on the internet, Binish Qureshi recommends networking with other real estate investors in your area to gain insight into who the best people and companies are to hire. With a supportive and knowledgeable team around you, your real estate investments are much more likely to see success.
While real estate investment can seem to be a daunting task to get into, once you pick the market you wish to invest in and build yourself a strong team of individuals around you, you have built a very strong foundation to build off of.