{"id":10722,"date":"2023-06-24T07:28:35","date_gmt":"2023-06-24T07:28:35","guid":{"rendered":"https:\/\/gulfrealty.ae\/?p=10722"},"modified":"2023-08-30T09:37:02","modified_gmt":"2023-08-30T09:37:02","slug":"real-estate-investing-success","status":"publish","type":"post","link":"https:\/\/gulfrealty.ae\/old-site\/real-estate-investing-success\/","title":{"rendered":"3 Must-Do Things for Real Estate Investing Success"},"content":{"rendered":"\n<p>If you&#8217;re bailing out of the stock market like so many others, perhaps you&#8217;ve decided to <a href=\"https:\/\/gulfrealty.ae\/contact-us\/\">start real estate investing<\/a> rather than stockpiling your money under the mattress.<\/p>\n\n\n\n<p> If so, then this article is for you. In it, we discuss three fundamental things about real estate investing you should understand before you make your first real estate investment.<\/p>\n\n\n\n<script type=\"text\/javascript\" src=\"https:\/\/ssl.gstatic.com\/trends_nrtr\/3349_RC01\/embed_loader.js\"><\/script> <script type=\"text\/javascript\"> trends.embed.renderExploreWidget(\"GEO_MAP\", {\"comparisonItem\":[{\"keyword\":\"real estate investment\",\"geo\":\"AE\",\"time\":\"today 12-m\"}],\"category\":0,\"property\":\"\"}, {\"exploreQuery\":\"geo=AE&q=real%20estate%20investment&hl=en-GB&date=today 12-m\",\"guestPath\":\"https:\/\/trends.google.com:443\/trends\/embed\/\"}); <\/script>\n\n\n\n<div style=\"height:43px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_72 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/gulfrealty.ae\/old-site\/real-estate-investing-success\/#1_Understand_the_Basics_of_Real_Estate_Investing\" title=\"1) Understand the Basics of Real Estate Investing\">1) Understand the Basics of Real Estate Investing<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/gulfrealty.ae\/old-site\/real-estate-investing-success\/#Average_price_of_ready_residential_transactions_in_Dubai_from_the_fourth_quarter_of_2018_to_2022_in_AED_per_square_foot\" title=\"Average price of ready residential transactions in Dubai from the fourth quarter of 2018 to 2022 (in AED per square foot)\">Average price of ready residential transactions in Dubai from the fourth quarter of 2018 to 2022 (in AED per square foot)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/gulfrealty.ae\/old-site\/real-estate-investing-success\/#2_Understand_at_Least_Four_Elements_of_the_Return\" title=\"2) Understand at Least Four Elements of the Return\">2) Understand at Least Four Elements of the Return<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/gulfrealty.ae\/old-site\/real-estate-investing-success\/#Cash_Flow\" title=\"Cash Flow\">Cash Flow<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/gulfrealty.ae\/old-site\/real-estate-investing-success\/#Appreciation\" title=\"Appreciation\">Appreciation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/gulfrealty.ae\/old-site\/real-estate-investing-success\/#Loan_Amortization\" title=\"Loan Amortization\">Loan Amortization<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/gulfrealty.ae\/old-site\/real-estate-investing-success\/#3_Prepare_and_Do_Your_Homework\" title=\"3) Prepare and Do Your Homework\">3) Prepare and Do Your Homework<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/gulfrealty.ae\/old-site\/real-estate-investing-success\/#Form_the_correct_attitude\" title=\"Form the correct attitude\">Form the correct attitude<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/gulfrealty.ae\/old-site\/real-estate-investing-success\/#Develop_a_real_estate_investment_goal_with_meaningful_objectives\" title=\"Develop a real estate investment goal with meaningful objectives\">Develop a real estate investment goal with meaningful objectives<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/gulfrealty.ae\/old-site\/real-estate-investing-success\/#Research_your_market\" title=\"Research your market\">Research your market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/gulfrealty.ae\/old-site\/real-estate-investing-success\/#Learn_about_property_values_rents_and_occupancy_rates_in_your_local_area\" title=\"Learn about property values, rents, and occupancy rates in your local area\">Learn about property values, rents, and occupancy rates in your local area<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/gulfrealty.ae\/old-site\/real-estate-investing-success\/#Consider_investing_in_real_estate_investment_software\" title=\"Consider investing in real estate investment software\">Consider investing in real estate investment software<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/gulfrealty.ae\/old-site\/real-estate-investing-success\/#Develop_a_relationship_with_an_excellent_real_estate_agent\" title=\"Develop a relationship with an excellent real estate agent\">Develop a relationship with an excellent real estate agent<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"h-1-understand-the-basics-of-real-estate-investing\"><span class=\"ez-toc-section\" id=\"1_Understand_the_Basics_of_Real_Estate_Investing\"><\/span>1) Understand the Basics of Real Estate Investing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div style=\"height:43px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Real estate investing involves the acquisition, holding, and sale of rights in real property with the expectation of using cash inflows for potential future cash outflows and thereby generating a favourable rate of return on that investment. <\/p>\n\n\n\n<p>Moreover, investing in real estate is <a href=\"https:\/\/gulfrealty.ae\/blogs\/newest-trend-in-real-estate\/\"><strong>more advantageous than a stock investment<\/strong><\/a> (which usually requires more investor equity) because real estate investments offer the advantage to leverage a real estate property heavily.<br><br>In other words, with an investment in real estate, you can use other people&#8217;s money to magnify your rate of return and control a much larger investment than would be possible otherwise. <\/p>\n\n\n\n<p>Moreover, with rental property, you can virtually use other people&#8217;s money to <a href=\"https:\/\/gulfrealty.ae\/mortgage-calculator\/\">pay off your loan<\/a>.<br><br>But aside from leverage, real estate investing provides other benefits to investors such as yields from annual after-tax cash flows, equity buildup through appreciation of the asset, and cash flow after tax upon sale. <\/p>\n\n\n\n<p>Plus, non-monetary returns such as pride of ownership, the security that you control ownership and portfolio diversification.<br><br>Of course, capital is required, there are risks associated with investing in real estate, and real estate investment property can be management-intensive. <\/p>\n\n\n\n<p>Nonetheless, real estate investing is a source of wealth, and that should be enough motivation for us to want to get better at it.<\/p>\n\n\n\n<div style=\"height:43px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<h3 class=\"wp-block-heading\" id=\"h-average-price-of-ready-residential-transactions-in-dubai-from-the-fourth-quarter-of-2018-to-2022-in-aed-per-square-foot\"><span class=\"ez-toc-section\" id=\"Average_price_of_ready_residential_transactions_in_Dubai_from_the_fourth_quarter_of_2018_to_2022_in_AED_per_square_foot\"><\/span>Average price of ready residential transactions in Dubai from the fourth quarter of 2018 to 2022 <em>(in AED per square foot)<\/em><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<cite>&#8211; S<a href=\"https:\/\/www.statista.com\/statistics\/1367939\/dubai-average-price-of-ready-residential-homes\/\" target=\"_blank\" rel=\"noopener\">tatista<\/a><\/cite><\/blockquote>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"786\" height=\"476\" src=\"https:\/\/gulfrealty.ae\/wp-content\/uploads\/image-2.png\" alt=\"\" class=\"wp-image-10726\" title=\"\" srcset=\"https:\/\/gulfrealty.ae\/old-site\/wp-content\/uploads\/image-2.png 786w, https:\/\/gulfrealty.ae\/old-site\/wp-content\/uploads\/image-2-600x363.png 600w, https:\/\/gulfrealty.ae\/old-site\/wp-content\/uploads\/image-2-768x465.png 768w, https:\/\/gulfrealty.ae\/old-site\/wp-content\/uploads\/image-2-150x91.png 150w\" sizes=\"(max-width: 786px) 100vw, 786px\" \/><\/figure><\/div>\n\n\n<div style=\"height:43px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-understand-at-least-four-elements-of-the-return\"><span class=\"ez-toc-section\" id=\"2_Understand_at_Least_Four_Elements_of_the_Return\"><\/span>2) Understand at Least Four Elements of the Return<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div style=\"height:43px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Real estate is not purchased, held, or sold on emotion. <\/p>\n\n\n\n<p>Real estate is not about love, it concerns return on investment. As such, at the very least, prudent real estate investors consider these four elements of return. <\/p>\n\n\n\n<p>They are what reveal to the investor the potential benefits of purchasing, holding on to, or selling an income property investment.<br><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\" id=\"h-cash-flow\"><span class=\"ez-toc-section\" id=\"Cash_Flow\"><\/span><strong>Cash Flow<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The amount of money that comes in from rents and other income less what goes out for operating expenses and debt service (loan payment) determines a property&#8217;s cash flow. <\/p>\n\n\n\n<p>Furthermore, real estate investing is all about the investment property&#8217;s cash flow. You&#8217;re purchasing a rental property&#8217;s income stream, so be sure that the numbers you rely on later to calculate cash flow are truthful and correct.<\/p>\n\n\n\n<div style=\"height:27px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\" id=\"h-appreciation\"><span class=\"ez-toc-section\" id=\"Appreciation\"><\/span><strong>Appreciation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This is the growth in value of a property over time, or future selling price minus the original purchase price. <\/p>\n\n\n\n<p>The fundamental truth to understand about appreciation, however, is that real estate investors buy the income stream of investment property.<\/p>\n\n\n\n<p> It stands to reason, therefore, that the more income you can sell, the more you can expect your property to be worth.<\/p>\n\n\n\n<p> In other words, decide about the likelihood of an increase in income and throw it into your decision-making.<\/p>\n\n\n\n<div style=\"height:27px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\" id=\"h-loan-amortization\"><span class=\"ez-toc-section\" id=\"Loan_Amortization\"><\/span><strong>Loan Amortization<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This means a periodic reduction of the loan over time leading to increased equity. <\/p>\n\n\n\n<p>Because lenders evaluate a rental property based on income stream when buying multifamily property, they present lenders with clear and concise cash flow reports. <\/p>\n\n\n\n<p>Properties with income and expenses represented accurately to the lender increase the chances the investor will obtain favourable financing.<\/p>\n\n\n\n<div style=\"height:43px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-prepare-and-do-your-homework\"><span class=\"ez-toc-section\" id=\"3_Prepare_and_Do_Your_Homework\"><\/span>3) Prepare and Do Your Homework<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Successful real estate investing requires preparation and research. Here are six suggestions that will help you get started.<\/p>\n\n\n\n<div style=\"height:27px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\" id=\"h-form-the-correct-attitude\" style=\"text-transform:capitalize\"><span class=\"ez-toc-section\" id=\"Form_the_correct_attitude\"><\/span>Form the correct attitude<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p> To succeed at real estate investing, foremost, strike the notion that you&#8217;re house hunting and remember that real estate investing is a business. <\/p>\n\n\n\n<p>Unless an amenity affects income, look beyond curb appeal and facilities such as spacious kitchens and focus on the numbers. <\/p>\n\n\n\n<div style=\"height:27px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\" id=\"h-develop-a-real-estate-investment-goal-with-meaningful-objectives\" style=\"text-transform:capitalize\"><span class=\"ez-toc-section\" id=\"Develop_a_real_estate_investment_goal_with_meaningful_objectives\"><\/span>Develop a real estate investment goal with meaningful objectives<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p> Have a plan with stated goals that best frames your investment strategy; it&#8217;s one of the most crucial aspects of profitable investing.<\/p>\n\n\n\n<p> What do you want to achieve? By when do you want to achieve it? How much cash are you willing to invest comfortably, and what rate of return are you hoping to generate?<\/p>\n\n\n\n<div style=\"height:27px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\" id=\"h-research-your-market\" style=\"text-transform:capitalize\"><span class=\"ez-toc-section\" id=\"Research_your_market\"><\/span>Research your market<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p> Understanding as much as possible about the conditions of the real estate market surrounding the rental property you want to purchase is a necessary and prudent approach to real estate investing. <\/p>\n\n\n\n<div style=\"height:27px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\" id=\"h-learn-about-property-values-rents-and-occupancy-rates-in-your-local-area\" style=\"text-transform:capitalize\"><span class=\"ez-toc-section\" id=\"Learn_about_property_values_rents_and_occupancy_rates_in_your_local_area\"><\/span>Learn about property values, rents, and occupancy rates in your local area<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p> You can turn to a qualified real estate professional or speak with the county tax assessor.<\/p>\n\n\n\n<p>Learn the terms and returns and how to compute them. <\/p>\n\n\n\n<p>Get familiar with the nuances of real estate investing and learn the terms, formulas, and calculations. There are sites online that provide free information.<\/p>\n\n\n\n<div style=\"height:27px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\" id=\"h-consider-investing-in-real-estate-investment-software\" style=\"text-transform:capitalize\"><span class=\"ez-toc-section\" id=\"Consider_investing_in_real_estate_investment_software\"><\/span>Consider investing in real estate investment software<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p> Having the ability to create your rental property analysis gives you more control over how the cash flow numbers are presented and a better understanding of a property&#8217;s profitability. There are software providers online.<\/p>\n\n\n\n<div style=\"height:27px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\" id=\"h-develop-a-relationship-with-an-excellent-real-estate-agent\" style=\"text-transform:capitalize\"><span class=\"ez-toc-section\" id=\"Develop_a_relationship_with_an_excellent_real_estate_agent\"><\/span>Develop a relationship with an excellent real estate agent<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Develop a relationship with an excellent real estate agent that specializes in the rental property and understands your real estate market<\/p>\n\n\n\n<p>It won&#8217;t advance your investment objectives to spend time with an agent unless that person knows about investment property and is adequately prepared to help you correctly procure it. <\/p>\n\n\n\n<p>Remember, not all real estate professionals are created equal and you want an investment property specialist.<\/p>\n\n\n\n<div style=\"height:43px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>There you have it, as concise an insight into real estate investing as I could provide without boring you to death; just take them to heart and you should be fine. Here&#8217;s to your investing success.<\/p>\n\n\n\n<div style=\"height:43px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Discover the key strategies for real estate investing success. Learn the three essential actions you must take to ensure profitable investments in the real estate market. Start your journey towards financial prosperity today.<\/p>\n","protected":false},"author":3,"featured_media":10724,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[338],"tags":[332],"class_list":["post-10722","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-investments","tag-real-estate-investing-success"],"_links":{"self":[{"href":"https:\/\/gulfrealty.ae\/old-site\/wp-json\/wp\/v2\/posts\/10722","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gulfrealty.ae\/old-site\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gulfrealty.ae\/old-site\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gulfrealty.ae\/old-site\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/gulfrealty.ae\/old-site\/wp-json\/wp\/v2\/comments?post=10722"}],"version-history":[{"count":2,"href":"https:\/\/gulfrealty.ae\/old-site\/wp-json\/wp\/v2\/posts\/10722\/revisions"}],"predecessor-version":[{"id":10728,"href":"https:\/\/gulfrealty.ae\/old-site\/wp-json\/wp\/v2\/posts\/10722\/revisions\/10728"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gulfrealty.ae\/old-site\/wp-json\/wp\/v2\/media\/10724"}],"wp:attachment":[{"href":"https:\/\/gulfrealty.ae\/old-site\/wp-json\/wp\/v2\/media?parent=10722"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gulfrealty.ae\/old-site\/wp-json\/wp\/v2\/categories?post=10722"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gulfrealty.ae\/old-site\/wp-json\/wp\/v2\/tags?post=10722"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}