Interested in splurging on your property? Make sure you know where to put your money! Use these investment tips to find the best property.
When it comes to property investment, there’s no shortage of information available about what budding investors should do in order to ensure success.
But perhaps more important are the pitfalls to avoid so you don’t become a statistic of the property game.
Even in this current economy, you can learn how to invest intelligently and make yourself some extra money in the process.
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Property Investment Tips
Property investing is all about finding the right property that will work the best for you. Things that make up the right property can differ from investor to investor and depend on your specific needs.
- You can buy properties by researching bankruptcies and foreclosures at the county clerk’s office or find out about short sales from your bank. Trying to short sale the bank though can be a real pain. The bank will drown you in paperwork and even if you do everything right they may still take a long time in approving your request. Short sales are not a quick way to get into the investment game.
- When looking at ads in the paper, find properties to buy with ads that say, “motivated seller” or other phrases that mean the same thing. You can probably work out a really good deal on these properties.
- When you find a property do your due diligence and research it thoroughly. Get an appraisal and get it inspected. You do not want to buy a money pit. You want to buy a place that you can put a minimal amount of money into and fix it up quickly for a good return on your investment.
- The sooner you can get your newly acquired property fixed up and on the market, the sooner you can get a tenant into the property and start getting a regular monthly cash flow. Getting a regular monthly cash flow is the bottom line for any investor.
- Other property investment tips include contacting your local real state agent to assist you in finding comps of other properties in the area where you want to buy. Comps are basically the average price of what other properties in the area are selling for or are worth. A real estate agent can also tell you if they think the property is a good investment and recommend a good inspector and appraiser you can trust.
- You obviously have to have money before you can be a real estate investor but, if you do not have the money to buy properties there are ways to get the money that you need to be aware of.
- One way is to borrow money from a lending institution. Be aware though, in this current downward economy, lending institutions required almost better than perfect credit before they will approve a loan request.
- Another way to get the money to invest in real estate is to find a secondary investor, basically a partner. They put up the money and you do the work and then you split the profits.
- Another option is to find what’s called a hard money lender. They have no interest in the property and require the money to be paid back in a certain amount of time with interest. A hard money lender may be hard to find but worth they’re weight in gold when you do find one you can work with.
While some investors may want to buy a property and rent it out straight away, others may choose to live in the home while they renovate it.
Investing in bricks and mortar can be a great way to create wealth, but there are some golden rules to consider before taking the plunge into property investment.
Clearly owning property – your own home and investment properties is the way to wealth.