creation with your investment properties. Don’t use best-case scenario estimates and do not expect to get more than a 2x return on your investment in renovations. • Before entering any real estate deal, know exactly what you’ll need to hold in your reserve in addition to your hard project costs. Accurately calculate the capital you need to buy, renovate, and hold the property. It’s wise to pad these numbers to ensure ample capital is available to complete your

business plan. Finally, when forecasting projected costs and ROI, use conservative numbers to mitigate risk! For the deal to succeed, you have to be well-funded at every phase. Real Estate investing deals are unpredictable, so if you’re not prepared from a capital perspective, your deals could easily go awry.

you know” and know why you own it. In today’s uncertain environment, you must understand trends, especially supply and demand. And you must follow the data to the opportunities. For large strategic decisions, and for decisions about what markets to invest in, you must analyze macro data at the national and regional level, such as: • Market growth • Trends in investment segments • Homeownership versus rentership

DOYOURMARKETRESEARCH Peter Lynch, the famous Fidelity mutual fund manager, says to “buy what

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