Real Estate And What You Need To Know On Purchasing It

  • Published on
    15-Aug-2015

  • View
    12

  • Download
    0

Embed Size (px)

Transcript

<ol><li> 1. Real Estate And What You Need To Know On Purchasing It Investing in real estate can be extremely profitable if you know what you're doing. It is important to make smart and calculated moves so that you don't make mistakes or get in over your head if things change. So, this article is going to prepare you with some helpful advice concerning real estate investing. Never give up if you ever experience a setback with your plan and strategy. The real estate market is filled with many great and bad times, so make sure to stay strong if you hit a lull in your search. Persistence is the key to success when dealing with real estate. Find your comfort zone and stick with it. You can have much more success at real estate investing if you stay focused within your market niche. Whether you are flipping houses, working with starters or dealing with properties with low down payments, stick to what you know for success. Find like-minded people and learn from them. Many people make a living from investing in real estate. It is so popular, local business communities have groups that focus on this specifically. Real estate investors can also be found on real estate forums and on social media sites. Get out there and see what your peers can teach you. You want to stay away from rock bottom real estate prices. There's a reason that property is cheap, and you don't want to be the sucker who finds out why! Spend some more to make sure you get something people will be interested in. When looking to purchase an investment property, make sure the https://twitter.com/JohnHermanAgent rent you will be collecting will cover most, if not all your monthly mortgage payment. When you do this, you can be more certain of making a profit. There is little worse than needing to dig into your own pockets for rent that isn't coming from your tenant. Don't just go with the very first piece of property you come across when you're looking for real estate to put your money into. A lot of the time you will find that there are better deals if you look hard for them. You don't want to end up with something only to find a better deal after spending all your money on something else. Never assume that property values are always going to rise. This is not how the market works, and you should definitely not count on this happening. You are better off investing in properties that deliver positive cash flow quickly. Property value appreciation will definitely be good for your income. Consider building up a real estate rental portfolio that can continue to provide you with consistent profit for retirement purposes. While purchasing homes to sell for profit is still possible, it is less of a reality in today's world than it has been in the past. Building up rental income by purchasing the right properties is trending vs flipping homes due to the current housing market. Have multiple exit strategies for a property. A lot of things can affect the value of real estate, so you're best having a short term, mid-term, and long term strategy in place. That way you can take action based off of how the market is faring. Having no short term solution can cost you a ton of money if things go awry quickly. </li><li> 2. Beware of buying single-family homes in a neighborhood that is full of rental property. Typically, a rental neighborhood is not a desirable location for buyers who want to raise a family. The value of single-family homes in this type of neighborhood will not likely go up very much because of their location. Always consider the market if you are looking to buy property to turn around and resell it. It can be risky to invest in a market that is flooded with available properties. You don't want to be stuck with something that you have to sell at little or no profit. Understand that you may have to wait to get the best price so make sure you can do that. Insure all of your properties, even if they are currently vacant. While insurance can get expensive, it will ultimately protect your investment. If something were to go wrong on the land or in a building http://www.homes.com/ you own, you will be covered. Also, have a general safety inspection conducted once in a while too, just to be on the safe side. Screen every single candidate for tenancy. Tenants you can't trust to respect you or the property often damage the place and are late on rent. Be sure to check potential tenants' references and credit score and find out if they have a criminal record. Being smart about who you rent to is important when searching for quality tenants. You can sometimes use certain times of the year to your advantage. There are times when properties sales are at their lowest due to the time of the year. This is when you have the advantage as a buyer and can use that to your advantage to find motivated sellers who need to sell quickly. Look for foreclosure opportunities. There are a lot of excellent real estate investment options among foreclosures. They are near always listed well below market price, and some may likely only need minor upgrades and touch-ups. Foreclosure flipping can be a very profitable investment strategy, but do your homework before getting into it! Remember that your investment in real estate may not pay off immediately. You should have money saved up in the bank. It is best that you are working when you get started. This also helps at times those unexpected events crop up at the investment property that you need money to take care of. Things could go south quickly, if your income source is not solid. If you possess a vacancy when it comes to the property that you are investing in, be sure to have money set aside in order to cover monthly mortgage expenses. This will prevent you from worrying about covering mortgage payments when you're between renters. Never invest in a piece of real estate based on pictures you see on the Internet and/or owner promises. This is an easy way to get stuck with something that may be useless. The best thing to do would be to see the property with your own eyes before investing any money. </li><li> 3. The goal of real estate investing is to buy and sell at a profit, and now that you have these great tips to follow, success should be in your future. Be sure to learn as much as you can about real estate so that you can achieve your goals. Good luck and have fun investing in real estate. </li></ol>