12 Key Tips On Investing In Real Estate
The idea of owning a piece of real estate has always been popular but once again it seems to be gaining a lot of new fans. Many investors have grown tired of the ups and downs of the stock market and see the current slump in real estate prices as an obvious buying opportunity.
Owning real estate used to be the easiest way to climb your way to the top of the money tree. It may not be so easy now and you should probably forget about the oncepopular practice of flipping properties. It is probably advisable to look at real estate the way our grandparents did as something to hold onto. This doesnt mean a lifelong investment necessarily but in todays soft markets you are not going to buy one week and sell at a profit the next. Those days are gone perhaps for a very long time. Time of course will tell!
Once you have made the final decision to purchase property as an investment the real hard work begins. Finding a piece of property that is going to be right for you and your particular needs takes time. It also takes a lot of reading talking using connections and a whole lot of research. Here are 12 tips to help you get started whatever the market conditions and wherever you happen to be both financially and geographically:
1. When investing in real estate dont be shy about taking advice from the experts and the financial institutions that are more knowledgeable. Getting good advice and the proper guidance will assure that your buying experience will be positive one. Therefore it is important to gather good current usable information from reliable sources.
2. Planning ahead is a key element in a successful real estate investment. Before you decide to put a good portion or all of your life savings into property be meticulous about the planning of the entire venture. This includes the location of the property the development and how it will eventually profit you.
3. Buy a fixerupper. This can be a worthy investment in the longerterm sense as you will be investing sweat equity over time rather than cash right away. Your time has value certainly but there is greater flexibility when you do the work yourself.
4. Once you acquire a property use it as a rental. This is a pretty straightforward way of obtaining a steady monthly income. If you decide to do this make sure that you have an arrangement with the tenants in the form of a legal lease agreement. That way there is no confusion on how the property should be maintained. If you can have tenants ready as soon as the property is secured all the better.
5. Find a motivated seller. Sellers usually are more inclined to sell faster when there are other factors involved. Usually this includes the loss of employment relocation divorce or illness. Keep your eyes and ears open and talk to as many people as possible.
6. Make an offer. After youve invested all of those long hard hours into the research its finally time to put the pen to paper. Be sure that you have at least two contingency plans in place just in case things dont go as planned. That way if you cant rent or sell the property you are not stuck with you finger in the dam and have the wherewithal to survive a delay in your timeline.
7. Have your financing arranged. Once the seller has agreed to your offer the deal is almost at the closing point. If youre planning on closing the deal alone have the financing lined up with the lender so there are no lastminute snags that provide an out for the buyer.
8. Follow through with the deal. Usually investing in property leads to three things for investors: buying fixing and selling. The offer and the underlying plan will be based on certain assumptions about the sale price and the renovation plans and will operate best on a fixed timetable. Follow through and dont delay.
9. Purchase a property that is in foreclosure. This can make for a lucrative investment as the property will sell below the actual market value. Be prepared for lots of competition for these kinds of listings.
10. Buy two properties in one. A duplex for example is a good investment for someone looking to own property live on it and make some rental income as well. You end up with two small homes for the price of one larger house in many cases.
11. Know the condition of the property before purchasing. Invest a little time and money to have the appropriate professionals come out and do an overall evaluation of the property to ensure that you are not setting yourself up for total disaster.
12. The final and most important tip is LEARN! Gain as much knowledge as possible about investing in real estate. The more you know the better. Getting into buying and selling property without having all your ducks in a row especially in the volatile markets we are now facing around the world can put you in a rut that may be hard to escape.
Overall the idea is to read listen ask questions do your homework and learn all you can before plunking down your hardearned dough. You might even be able to make a living with real estate investments. It is dangerous and volatile as mentioned but some people thrive on that kind of challenge.
If you dont thrive on fastpaced wheeling and dealing and still want a house just buy the one you can see living in the rest of your life. All the same advice applies whether you are buying one home to live in forever or starting your own real estate empire. It all comes down to common sense getting the right information talking to the right people then making all the right moves. Just keep your wits about you ask the tough questions and when youre ready to pull the trigger on a deal take your best shot.
About the writer: John Dale is a leader in Maple Ridge BC real estate and investing in the region. Looking for beautiful property in BC look no further than JohnDale.ca. John Dale: your Maple Ridge real estate properties expert.
Related posts:
