Investing in real estate can be highly successful, or it can be a complete failure. You may believe location, location, location is the number one rule, but the reality is that knowing who you are dealing with is even more important. The sad truth is that you will find that there are some very unscrupulous people who deal in real estate. Think of the people you see on late night television, who promise to make you a millionaire.
You should never invest in real estate before having a few affairs in order. To get started, you will firstly need to have investment capital. You should also look into the overall real estate market and the neighborhoods you are interested in.
Next, you must make sure your investment isn’t too risky. Although there is always a risk in real estate, some options are higher risk than others. If at all possible, avoid tenant-in-common options, fixer uppers, real estate development and private real estate funds. Invest in these options and it is unlikely that you will ever see a return. Instead, choose to have titles that are totally yours, on properties that are interesting. This does mean that you need to take the time to analyze and research your options and to exert due diligence. Do not pick properties that will be highly time-consuming through managing them for instance. If at all possible, avoid properties in bad areas, college homes and vacation rentals for instance. You should look for properties that people with good credit profiles will rent for extended periods. This does require a commitment on your side to treat your tenants with the respect they deserve. All properties will have some sort of issue at some point, but this should be manageable so long as you deal with them quickly.
If you don’t have a lot of money to put down, you will find that it is easier to invest in rental properties if you are younger. This is due to the fact that banks will generally want you to put at least 20% down on a rental property mortgage. This can be a significant amount, particularly if the property needs repairs as well. However, banks tend to be a bit nicer to younger people. There is a lot more to real estate investing than this. One of the things you will need to work out is which property to invest in at all. Finding a property involves a whole lot of research and analysis as well. You also need to work with a good realtor to represent your needs. Together, you can start looking for properties. Once you have your property, you need to learn what it means to be a good landlord, which will also take some time. Do remember that it is time worth spending.
Whether you are looking at buying or selling a property, it is always advisable to work with a very good realtor. Although most of us know at least one person who works as a realtor, don’t be tempted to automatically go to them as they may not be the best to represent your needs. Let’s take a look at two important things to ask in order to find out which realtor is best for you.
Ask about to see if you know someone that can recommend a realtor. However, don’t let someone else’s opinion be the determining factor. Take the time do a lot of research. Your realtor should also be experienced in your needs. If you want to purchase a condo, there is no point going to someone that specializes in luxury mansions. Next, make sure you speak first to potential realtors before you hire them. Ask anything that is relevant, such as how they will represent you, what they can do for your, what experience they have, how much they cost and so on. You need to make sure your realtor understands your expectations. You have to make sure that your needs are clear. Finally, make sure that you actually get along with your realtor. After all, without a personal liking, there will be no trust either. The last thing is that you need to find someone that is very experienced. Although you might want to help out someone who is just starting in the world of real estate, would you really trust them with the thousands and thousands of dollars involved in these transactions?
It would be a mistake to work with the realtor whome the sellers of a property have already hired if you are looking at making a purchase. By law, the realtor will have to pass on any information you give to the seller as well. In the same manner, if you want to sell, you shouldn’t work with your potential buyer’s realtor either. What you need is a realtor that only works with you. Firstly, ask your friends and others whether they can refer you to a realtor. Another place to look for a good realtor is the NAR (National Association of Realtors. If you work with a realtor registered with the NAR, you will know for sure that they are professional and ethical. Do make sure you speak to several before you decide which one to go with. Make sure they have a great understanding of your needs, so they an start making suggestions too. Doing so will make sure that you can learn how much a realtor knows about prices, neighborhoods and so on. If you want to sell your home, find out how the realtor has done in the past. You need to know whether they usually sell below, on or above the asking price.
The information above has been designed to help you choose a good realtor. Their service is about ensuring you can find the home of your dreams. Hence, make sure you only work with a realtor that you believe has your best interests at heart
The motivation you have for selling your home will be a huge driver for how much you end up getting for it. Hence, even if your motivation is to sell your property as fast as possible, you still might want to find yourself motivated by profit for your own benefit as well. If you want to sell your home at the best possible price, there are a few things you must do.
Firstly, you need to work on the outside. The outside of your property is what will give potential buyers the first impressions. So, make sure your yard is clean and that your bushes and trees are pruned. You need to try to look at your home through buyers’ eyes and see whether there is sufficient curb appeal. Generally speaking, this is all down to keeping the outside tidy rather than having to do any major work.
The next step, naturally, is to have the interior checked. Obviously, you have to make sure that the interior is clean and tidy as well. Do not try to make your house smell nice with scented candles or air fresheners. You may believe that they smell gorgeous, but the reality is that not everybody enjoys them. Also, a potential buyer may believe that you are hiding something from them. Next, make sure you take care of clutter. You may love all your nicknacks and pictures but they stop potential buyers from really seeing your property. What you want to do is make your home look big, which means there should be as little as possible on your walls, floors and shelves. The exception to this rule is the mirror. Mirrors create a false sense of size, making your home look bigger. Also, do make sure that there is something hanging on your walls somewhere, because your home will appear hollow without it. Try things out a little bit, seeing what works and what doesn’t, and use your own common sense to get it right.
Lastly, you have to get all your cleaning gear out. Make sure every surface has been cleaned properly. The elbow grease is going to have to come out, and it is also a great opportunity to start to get rid of the clutter in preparation for your own move. You need to transform your home into a show home. This also means addressing the outside of your property. Your goal is to have a clean yard with a nicely mowed lawn free from weeds, and properly pruned trees and bushes. The exterior of your property creates a first impression. You only get one opportunity to create a first impression. Hopefully, these tips will help you to sell your property as quickly as possible for the best price.
Home sellers don’t always give you the full details of the property they are trying to sell. Although a professional inspector would pick up on any problem, it is expensive to hire one for each viewing. So, here are some red flags that you can look out for that could tell you to avoid the property.
The first thing is that you must think twice before you purchase a “fixer upper.” It is certainly true that these properties seem very interesting because they are so affordable. Many of us believe that we have sufficient DIY skills to fix up such a property. The truth is that most of these things can only be fixed by qualified professionals. Unfortunately, these professionals cost a lot of money, often more than you may have budgeted for. Next, you must be careful with properties that have modifications made that are clearly DIY. People may have done a really good job, at least cosmetically, but the reality is that it may be saddled with problems.
The second important thing is to look into whether the home you are considering is going through foreclosure or is in short sale. Indeed, these properties tend to be the cheapest, but that is because they often require a lot of work or because the entire neighborhood is declining.
The bottom line is very simply that a home should never be bought unless a professional inspector has given you the green light. The information above, therefore, is not designed to help you decide whether or not you want to buy, but rather whether or not you want to have it inspected. If there are any existing problems, you may want to consider not buying the property at all, or asking for a very significant discount as you will have to invest in the repairs sooner or later. Do also make sure you listen to professional inspectors’ advice. Their goal is to make sure you get a good deal on a property.