Jerome Karam Gives 7 Tips For Real Estate Investment In 2023
Investors took a beating in 2022. Almost everything faltered in the past year, including stocks, bonds, and real estate. Meanwhile, inflation and interest rates soared to their highest levels in decades.
All these are happening just as the economy is trying to recover from the pandemic. Many are laying low and waiting for the chaos to subside.
The upcoming year is likely to provide numerous opportunities in real estate. Decreasing demand and increasing inventory will keep prices low. It is a great time to hunt for bargains and turn them into money-making assets.
This has proven a successful strategy for Jerome Karam of JMK5 Holdings. The visionary developer Jerome Karam, from Texas, is gearing up for a busy 2023. He offers the following tips for like-minded individuals.
Jerome Karam’s 7 Tips for Real Estate Investing in 2023
1. Develop a Long-term Plan
Investments do not always make money right away. It can take a long time before they turn a decent profit. Ten to twenty years is the usual investment horizon for real estate investors.
In the meantime, you must stay calm when values fluctuate. Don't panic when the market plummets because it will inevitably bounce back. The worst thing you can do is to sell at a loss when things go south.
Stick to your plans for your properties instead of letting emotions dictate your actions. When acquiring new assets, consider their long-term viability, this is something Jerome Karam does for every investment.
2. Study the Market
Not everything that glitters is gold. Some investment opportunities may look tempting, but a deeper dive will reveal unacceptable risks and shaky foundations.
Protect yourself against unnecessary losses by sidestepping those. Stick to assets you understand.
Study every opportunity until you know them inside and out to prevent surprises, and remember that you can do some things yourself. Seek help from trusted advisors if necessary. They may highlight things you should have considered because of inexperience or insufficient information.
3. Focus on Cash Flow
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See whether you can profit from a property. Think about your cash flow while paying for the loan. Can you earn enough to cover the monthly payments? Can you reduce operating expenses?
Since we are in a tight market, you need to make conservative estimates in your calculations. For example, expect lower rental rates for apartments and commercial spaces. Consider other income-generating measures to boost cash flow while you wait for demand to recover. These should keep you afloat during turbulent times.
4. Check Your Finances
Bad things can happen whether you like them or not: downturns, disasters, pandemics, and other unexpected events. Do not let these scare you from making investments.
Focus on what you can control, such as your finances. See where your savings are now and create a budget for recurring expenses. In addition, consider your likely income trajectory over the next few years.
The numbers will tell you how much you can afford to spend on property investments today. Do not forget to set aside a substantial emergency fund as a shield against sudden financial shocks and foreclosures.
5. Find Affordable Financing
Low-interest rates made it easy to borrow money in the past. Now, lenders are imposing much higher rates. The change has massive implications for real estate investors.
Traditional 30-year mortgages used to have roughly 3% interest, but the rates doubled over a short period. Expensive loans make investments unsustainable. It's hard to pay for them, and it's nearly impossible to turn a profit.
Investors may check alternative sources for affordable financing. Some get their funds from private lenders, partnerships, syndication, and crowdfunding. Ask around to see what's out there, but read the fine print before signing up.
6. Watch Regional Trends
Real estate is all about location. The market conditions are different for every region. If you need help finding good deals in your area, explore other places to see what they have available.
Perhaps they can offer better prices and prospects. For example, the pandemic drove people out of the big cities where high infection rates and strict lockdowns made life unbearable.
Meanwhile, nearby smaller towns got an influx of wealthy transplants that drove property prices up. As the pandemic wanes and workers return to offices, the trend may reverse and allow investors to cash in.
7. Use Modern Tools
Property investing is easier than ever, thanks to modern tools. You can skip driving around looking for possible purchases. Just do a web search for property listings and get hundreds of results.
You can narrow these to your preferences in terms of price, type, and features. View the gallery and take virtual tours to get a feel for the place before you set foot in it.
Technology also allows people to make partial investments to bridge the budget gap. Even small investors can get into commercial real estate by banding together in crowdfunding projects. Examine them before joining, no matter how much you plan to invest.
Like all investors, Jerome Karam is always searching for new opportunities. His company, JMK5 Holdings, is focused on community restoration. It tends to purchase large floundering properties to turn them into thriving commercial centers.
Most of its projects revolve around Galveston County, with a total area exceeding one million square feet. Among its recent acquisitions is the Mall of the Mainland in Texas City.
After redevelopment, it became a multi-use destination with the largest World Gym in the US, Mainland City Suites, Right Move Storage, Texas Entertainment Xperience, and various dining establishments.
Anyone can achieve success in real estate with the right moves in the right places. You can start small and dream big. Follow the tips from Jerome Karam above to improve your chances.
For Jerome Karam, Houston is one of the best areas to bet on today with its booming economy and strategic location.
The future looks bright for the city in 2023 and Jerome Karam and his company, JMK5 Holdings. Investors can join him or search for other promising towns across the country. Endless prospects await the most diligent individuals.