The economy is in a sad state right now. People everywhere are losing their homes, and the market is flooded with foreclosed properties. The good news is that if you have ever wanted to try your hand at property investing, this is the time to do it. The important part that many people fail to realize is that real estate investment is a business. You need to know what you are doing in order to succeed.
Many would be investors believe that the secret to property investing success is finding cheap houses for sale. Sadly, those are usually the ones that fail. Successful investing requires more than finding a house with a low price tag. What if that low priced home has an incredibly low value, and still requires tens of thousands of dollars in repairs? What if the property is located in between a junk yard and a dump?
The condition of a house has a lot to do with its worth as far as an investment. The price of investment properties isn’t the only thing to look for. It’s important to do a walk through of the entire property, so you can make a note of any repairs that need to be done before the home is ready to be lived in. You’ll also need to get an appraisal, so you know the property’s value. There are many different calculations you can use to determine the worthiness of a property, but in general, compare the sale price to the repairs and renovations and the actual value of the property; on that alone, will you be losing money?
Next, where is the property located? What amenities are nearby? Generally speaking, people like living near schools, shopping centers, department stores, libraries and churches, while they dislike being near trash dumps, stadiums and any place that is dangerous or loud. The location has a lot to do with your success at selling or renting the property, so be sure to visit the property to get a feel of the location.
Another vital part of your success as a real estate investor is to know the current housing market. Imagine doing all of the research, visiting tons of properties, determining which property you want to purchase, then doing all of the renovations and repairs, listing it for sale and having the home sit on the market for 6 months or more! If you had researched the current market a little more, you may have realized that homes were not selling at the moment, and could have saved a lot of time and headaches.
Real estate investing can be extremely profitable when done right. It isn’t difficult to learn the important things you need to know. Sign up for updates on some informational real estate investing blogs, join some forums, and read everything you can find. Write down any questions you may have; find a local property broker that can answer all of your questions, and may even be able to hook you up with some great properties!
[easyazon-block asin=”0470499265″ align=”none”]