Get rich in your spare time

You can become rich in your spare time. There is no gainsaying the fact that there are several things that we do not have equally in life, such as intelligence, money, connections and academic qualifications.

But one of the realities of life that is equally true to all is the scarcity of time. Time is perishable. Whether or not you use it constructively, it will pass.  Time is simply limited in supply. None of us will ever have more than 24 hours but we can do a lot with our time that will benefit us. One of such things that we can do with our spare time is to learn to get rich using real estate investment as a vehicle.

Anyone who is serious about investing in real estate must become familiar with the various stages of the process.

The idea is not to make you an expert in every area of real estate investment but to make you an informed investor. There is a lot of difference between the two but it is the combination of the two that makes a great team.

An informed real estate investor uses the right professional team (experts) but has enough knowledge to analyse the advice received from such professionals and to ask intelligent questions. Ultimately, his knowledge ensures that he takes responsibility for his investments. The buck, as they say, stops at his desk.

As a preliminary step, you should regularly read real estate related articles and advertisements.

This seemingly simple activity done weekly will begin to give you an appreciation of what real estate investors know and do as well as an understanding of the value patterns of various properties in your areas of interest.

This requires that you should focus on specific areas. When you read property advertisements, try and consider the logic behind the different sales price. For instance, properties in the same area may have different values placed on them due to their size, the type of property on the land and the state of the property. Also, the value may be affected by the location of the property.

Many individuals have the time to read materials that add no positive benefit to their short, medium and long term goals. You should do better than that. Read strategically and know what to look for.

Another thing you have to be on the lookout for is any new government regulation or policy that can affect a real estate investor.

The governments, at both federal and state levels, know the importance of the real estate sector and are continually introducing policies in this area.

There are several incentives to encourage property investment and registration for private and commercial uses. Your job is to be among the first to know. You never know where you will discover that life changing opportunity. It could be in investing in that new government residential scheme or free trade zone.

In order to have a better understanding of your chosen area, you need to call some of the advertisers of the type of properties you would love to invest in. You can find out more about the property, discuss possible price discounts and other concessions.

It is preferable to schedule inspections and visit the properties that you will love to buy. What you will gain in the form of passive knowledge as you inspect the properties cannot be quantified easily.

However, to enrich your knowledge, if you are new to real estate investment, I strongly recommend that you should have a standard checklist that states what you should look for or questions that you should ask the agent; for instance, the state of utility and fittings in the property. If you have a friend who is more knowledgeable than you in construction, you can invite him to join you so as to enrich your mutual learning experience.

One of the aspects of real estate investment that has been a challenge to many investors in this part of the world is how to access finance.

Many would be investors have written off the banks as a source of real estate finance not because of their personal experience but as a result of hearsay reports from others. While some or most of those stories may be true, you need not allow them to deter you. Your circumstances may be different and you just may be among their catchment area for a loan. How do you know if you never try?

Approach your bank and tell them that you are interested in applying for a home loan. Ask for the requirements and go through them. For whatever it is worth, begin the application process after you are sure you have seen a property that you will like to buy.

Also, begin to write down all your available options for raising finance to purchase your investment property.

Discuss the repayment plan with your account officer and request for a schedule of all the payments you need to make, should your loan be approved and you decide to accept it. Don’t be afraid to ask for definition of terms that you do not understand. It is a learning experience and one of the best ways to make use of your spare time is to learn to do something that has made several people rich and can make you rich.