Gain a Competitive Edge in Real Estate

Real estate investing success does not occur overnight. There are many factors that need to be taken into consideration for a successful real estate investing business. Real estate investing goes beyond locating for properties that are advertised at "Below Market Value" or watching for the mortgage interest rate levels. To be successful you must develop an eye and nose to detect gems that are being overlooked at the moment.

To have a successful real estate investing business you must have a plan and execute it. You must work hard and continue to improve your skill. You must stay abreast of the drivers that affect the real estate market. For example, the residential real estate market is affect by more than the interest rate. You need to take into consideration general factors such as, employment levels, income levels, interest rates, wage rates, transaction costs, and purchasing power. The relationship between national economy, regional economy and local economy should be inspected as well. This will help an investor to identify all the possible effects of all the variables on residential real estate investment.

Going beyond some of the economical factors that have an impact in real estate investing, you need to take into consideration social factors. Factors such as age distribution, crime rates, and education. You also need to think like the buyer, regardless if the buyer is another investor, rehabber or a family. Some other factors influencing the purchase of real estate are legal, political, and governmental factors. Down to the more specific factors that influence the purchase such as access, public transportation, schools, police protection, and fire protection. Also, shopping center, school, freeway, central business district, and parks must be taken into consideration.

As you can see, the purchase process is more than looking for the obvious. You must go beyond what everyone else is doing to be successful. You must have a competitive edge. As Jack Welch said "If you don't have a competitive advantage, don't compete". If you go beyond what everyone else is doing and gain a competitive advantage, then you can get one step ahead of rest people.