For the foreseeable future at least, it would be fair to say that Houston is always going to prove to be an attractive proposition for any investor worth their salt. The lucrative oil and gas industry that is based there means that there is always money available, and this is the prime reason why investors are always keen to keep the faith.
Of course, there is faith, and then there is blind faith. In a bid to ensure that you don’t tap into the latter, we have enlisted the help of real estate expert Al Hartman. To make sure that you are getting an accurate photo of the investment scene of Houston, let’s take a look at some of the key habits that he insists on for any investor who is thinking about taking their money there.
Habit #1 – Stay educated
When education is talked about, it refers to a number of different issues. Let’s start proceedings on a legal note, and the importance of making sure you understand each and every regulation that is going to affect your budding investment empire. Most of the time, these relate to tax and what you can and can’t claim for. However, some might be related to the type of maintenance that has to be performed on behalf of tenants, and other similar issues.
At the same time, there is education about an area. As most of us know, Houston is vast to say the least. There are lots of different neighborhoods, and they vary in the way in which they perform from a real estate perspective. Make sure you know the ins and outs of each one so you can capitalize accordingly.
Habit #2 – Work on your niche
Nowadays, particularly in a competitive market like Houston, “investing in real estate” is just too general. You need to specialize, and find a niche that you can well and truly profit from. For some of you, you might have mastered the art of apartments. Others, meanwhile, might have enough contacts and knowledge to buy derelict properties and remodel them to an extent that is going to leave you with a nice profit.
Rather than “try” every trick in the real estate book, focus on one area and you will see much more efficient results in the long-term.
Habit #3 – Work on a referral basis
Far too often, investors treat the industry as an “every man for himself” game. In a market like Houston, it’s best to do the opposite.
The market is so large, that there is more than enough room for everyone. If an opportunity crops up that might not be appropriate for you, but perfect for someone else you may have come across, let them know. This reciprocal approach can open up umpteen doors – doors of which would never have been found had you simply been working alone without any assistance for your entire real estate investment journey.