When looking to diversify an investment portfolio, many consider the benefits that come from real estate. To many, it seems like an initial cost can lead to many years of seemingly passive income from those who rent the property. Maarten de Jeu, a corporate development strategist and consultant, urges investors to consider what they’re looking for in an investment and come to understand the labor that will follow.
Firstly, there is quite a bit of difference between commercial and residential real estate investing. Commercial real estate, for example, is generally more costly than residential. But that increase in price comes with some advantages, like longer leases, higher rents, and contributions towards taxes, property insurance, and maintenance. For those interested in this, de Jeu has outlined some steps to get there.
Having worked across industries over his career, de Jeu has come to regard each one as a people business. Investors coming to real estate for the first time will soon realize that their ability to generate capital, find ideal properties, and close on them will depend on knowing people, how to communicate with them, and how to best ally with those best positioned to meet their business ambitions.
A good place to meet such people are networking events. De Jeu says that these events are held with the purpose of bringing industry people together to form working relationships. New real estate investors can use these events to learn more about the business, how it plays out at a local level, and start relationships with influential people who can help them in the future. De Jeu says the goal ought to be to build a professional social network around their new business.
To be effective at networking, and make people excited about working with you, de Jeu says even an amateur investor needs to be well-read on real estate investing. Digesting information on how real estate investing works makes sure an investor makes the right impression at those networking events and informs their decisions moving forward.
With information on hand and the right relationships started, de Jeu says the next step for any investor is to thoroughly research their investment prospects. Attending open houses and touring neighborhoods can tell investors a lot about local property values, damage to the property itself, and room for modernization to accommodate future tenants.
Once an investor has a good sense for what a property might cost, and how the area might impact that investment, it’s time to consider comparables. This a data set that compares price, potential value increase, and other factors of a similar property in a similar location.
However investors decide to proceed, de Jeu says that a wise one will take the time to research the business, have the amiability to make friends within the local business community, and be mindful to consider the actual cost of this investment. Learn more: https://maartendejeu.weebly.com/
About Maarten de Jeu:
Maarten de Jeu works in corporate development and strategy for corporations in Europe and across North America. Upon completing his MBA at the University of Oxford, de Jeu started his career with Aviva plc as a Director of Strategy and Corporate Development. He excelled in this position and was moved back to London to serve the company’s offices there as an International Strategy Manager. He sought a change of employer and found it in TVDK Management Consultants. There he worked with large corporations as a consultant, helping them expand their footprint to new markets in other countries.