REVIEW: The pros take these factors to the bank. A few tips from some experienced investment property owners.
- Pay attention to construction costs
- How many requests are being made for mortgage loans?
- Have patience and wait for the right price
- Negotiate at all levels
- Do your own research and don’t just accept information from a seller or agents
- Work available opportunities and don’t narrow ones views based on the media
- Ask a lot of questions
- Be likeable (friendly)
- Have a plan
- Know what qualities make you a good real estate investor and focus on those - whether that's networking or remodeling and upgrading properties
Keys to Think About in the Market
- Property prices need to come down after a bubble or incomes must grow to offset above market rates, have patience and wait for the property that matches your needs
- Myth – or false concept, scarcity on the coasts of the United States reduces supply and prevents big drops in price (not always true)
- Myth – values don’t drop in areas where employment is growing; other factors come into play like competion from other buildings for tenants
Investors Keys and Tips
1) Get the sales cap rates of a building (what the property sold for not before sale)—usually public data. Look for sales comparables.
2) Get a real estate agent to find or help with the property management search. Agents have a vested interest in the future sale of the building and have a number of contacts.
3) Buying condemned houses can work if all the permits are in place—electricity, plumbing, if it’s all there and in good shape you will save time and money. No need to get permits and set this infrastructure up. Learn more at locating foreclosures.
4) As a new investor, buy properties in areas close to where you live so you can monitor them, unless you are hiring an experienced property management team.
Even still, it’s good to know what’s going on and not be in the dark. You can discover ways to save money, way’s you’re losing money, way’s people are taking money, and so on, if you keep a close eye on your property. Essentially, early on, when you’re just getting started, there’s more risk involved in owning property in another state or a great distance away from where you live.
What else?
Buy property in areas where people want to live. Seems simple enough, close to schools, parks, stores, public tranportation, and in upcoming and well cared for neighborhoods.
Ask Questions:
Do you want to buy a property to fix up or a rental that is in perfect condition? Is being a residential landlord an option or do you want to higher an on site manager or tenant to take on those duties? What kind of property, house, apartment, duplex? What type of loan do you want? How much do you want to put down?
Check our site regularly for hot properties. Also check your local paper and contact a real estate agent to let them know what you have in mind.
Make your place standout: Want to buy a fixer upper or a new property? Is there somehting you can do to set your property apart - new carpet for a interested tenant? Or maybe it's free Internet access?
Take a look at past vacancy rates for the area in which your buying. Long term tenants are steady rent although often locked in at a lower rate.
Explore potential advertising options for your property--online, friends, church, colleges, newspapers, and so on.
Analysis rental rates for the area you're buying. Negotiate and calculate the totals costs and make sure you will make money.
Go through the whole process and get help if you have questions - learn more here.
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