How do you invest in real estate properties? I have interviewed a successful real estate investor from Bermuda to help you get started in the industry. Rochelle Simmons is a leading realtor at Coldwell Banker in Bermuda. Following her passion for real estate over the last several years she has purchased, flipped, and rented out several investment properties. Below is my interview with Rochelle to help you learn how to become a successful real estate investor.
Steven: Why do you choose to invest in real-estate?
Rochelle Simmons: I invest in real estate because I love it. It’s what I’m passionate about so when I am looking for a deal, I’m doing it from a perspective of genuine interest. I also happen to live in a place where real estate is considered a very precious commodity and history has proven that although the real estate market it cyclical, over the long term real estate does appreciate in value. However, if you happen to enter the market at the right time, with the right deal, substantial returns can be achieved more quickly.
Steven: What is the best way to find a real-estate deal?
Rochelle Simmons: When searching for the “right deal”, whether it is buying for re-sale, buying for rental income etc., very often you will need to look at and analyze many, many properties before you find the right one for you. Location, infrastructure, schools, business, demographics, popular trends etc are all aspects to be considered as part of the process. You will want to invest in a property that other people will find desirable when considering those particular issues. Develop relationships with Real Estate professionals who also invest as they will tend to have their finger on the pulse of what is going on in their area. The Internet is also an endless source of information and also allows you the opportunity to peruse hundreds of available properties from which you can short list the ones worth an on-site visit.
Steven: What are the specifics about your last deal?
Rochelle Simmons: We are actually working on a deal now which has not closed yet, but the last one was actually a foreclosure that I found in Atlanta, Georgia. The home was a three bedroom, two bath single family home with a den and two car garage. I found the home through a Real Estate Agent who contacted me after I did a search on a specific website that I gained through membership. I had looked at literally hundreds of properties online because do not reside in the United States. I actually contacted and “interviewed” a number of Agents via telephone in order to find the one with whom I felt most comfortable. She started sending me details of properties that fit my criteria and once I had short listed a few, we arranged the site visits. We found a great little foreclosure property which was being sold way below market value at a price of $110,000 in a neighborhood where similar houses were selling between $150,000 – $160,000. We renovated and upgraded it for rental income. The numbers are crucial. A good rental income property should provide sufficient income which covers not only the mortgage, but also the property taxes, insurance and estimated annual maintenance costs and hopefully still provide a little extra cash flow to boot.
Steven: What success strategy do you have for a new investor?
Rochelle Simmons: Educate yourself! Read, watch the market, listen to the money programs on television, talk to other investors, spend time on the Internet, talk to real estate professionals and bankers. Learn, learn, learn……and if you still want to do it….GO FOR IT! It’s all about taking a CALCULATED RISK.
To purchase real estate in Bermuda email rsimmons@brcl.bm.
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