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Real Estate Investment 101
b>Real estate can be quite this mean less competition for
a profitable investment, you, but it also means you have
when handled correctly. the upper hand. A slow market is
One of the biggest keys is to buy a buyer’s best friend.
low, and there are several ways
to achieve this. Divorce, death So you bought a fixer-upper
and foreclosure are great ways to and you don’t know where to
find real estate deals. Keep tabs begin? Save on overhead costs
on the newspaper classifieds for and maximize profits by doing as
foreclosure announcements and much work yourself as possible.
estate sale ads. In certain cases, the seller
would have been so eager to
With foreclosures, a low unload the property that they
offer could be accepted, because will have already done many
the property will soon go to the improvements. However,
property owner’s worst case structurally sound fixer-uppers
scenario – the auction block. are the best way to go for
Estate sales generally occur low-cost investments.
after the property owner is
deceased, so the sale Whatever the appearance of the
coordinators may be planning to home, it is important to
put the house on the market. A remember not to fall in love with
little detective work can make the property. Do not become
sure you are one of the first emotionally attached. Consider
buyers in line. factors like cost, potential
profit margin, location and any
Buying when the market is features that will help you sell
down is also a good way to the property.
nab property with relatively
small investment. Not only does This is where research and
homework come in handy. It
can help immensely in the •Pay too much – The
negotiation phase to know a thing importance of a budget and an
or two about the surrounding investment plan cannot be
market – for instance, the overstated. You must determine
direction the neighborhood is your price range and stick to it.
trending toward and whether there Don’t be afraid to walk away –
is currently a price ceiling. there is plenty of opportunity on
Real estate investment is all the auction block if nobody will
about numbers. Develop an agree to your terms.
investment plan and find several
different houses to fit into that •Failure to network –
plan. Picture everyone you could
possibly need to know in the real
Another key aspect of real estate industry. It is important
estate investing is to do to establish good working
your own homework on your own relationships with at least one
terms. Whether in the form of a trustworthy person in each
class, an article or a “How-to” industry. Networking is a large
guide book, find the information part of real estate investment.
that speaks to you. Real estate Membership in the local Chamber
investing can be a bit baffling. of Commerce or BNI can be a great
It is crucial to find a source of way to establish those
information that breaks it down much-needed contacts.
into understandable language.
•Move too quickly –
Below are some of the most Something the late-night “Get
common mistakes new real estate Rich Quick” infomercials won’t
investors make, and how you can tell you is that real estate
avoid them: investing is a game of patience.
If you wait to buy, a better deal • Underinsuring – You
may be right around the corner. would not underinsure your
At least sleeping on the deal health, your car or your life.
overnight can help you avoid Why would you underinsure your
paying too much. Waiting to sell home? Fire, natural disaster and
can also help maximize your flood insurance are key, as is
profit margin. Timing is accident insurance for unforeseen
critical. If the market is down, on-property incidents.
rent the property until you are
ready to sell. •Underestimate – Above
all, do not underestimate the
•Invest far away – What is cost of investing in a piece of
the best way to keep an eye on real estate. If anything, you
your property and the surrounding should underestimate your cash
market? Not by living in another flow. Overestimate the amount of
city. It will be most convenient time and money you will need to
for you – and you will be most get the property ready for
motivated to maintain and fix up market. Most experts will tell
the property – if you invest you to double your time estimate
relatively close to home. A good and triple your cost estimate.
rule of thumb is within a 30-mile This will keep your real estate
radius. investing machine afloat.
About the Author:
Eric Bramlett currently manages his Austin Real Estate Guide, his Austin Real Estate company’s website, & his Austin Condos Guide.
Read more articles by: Eric Bramlett
Article Source: www.iSnare.com |
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