All The Keys To Investing In Real Estate Property
There are several factors to consider when looking for real estate. They are location, property condition, price, financing, and the seller’s motivation and flexibility. Before you go hunting you should try to gather as much information on it as possible. These are the keys to investing in real estate property and if you assign each subject with a value between 1 and 3, in which 1 is the lowest score and 3 is the highest score, then you have indicators for the quality of your find. If you find that adding the values assigned to each topic add up to 12 or higher, then you have a property worth looking into.
With location, make sure the place is located near all the important means of transportation and other perks like shopping malls, schools, entertainment venues, parks, good landscape and other important services. Be on the look out for at least a middle class suburban neighborhood or better. The houses around it should have similar pricing. All these things indicate it’s in a good location.
Once you are visiting the place, be on the lookout for everything in and outside the house to be in good condition and working well. It should have nice landscaping and gardening, everything in the house should work, and there should be new equipment replacing the important stuff like the heating system, toilettes, doors and other items. Remember, the property you want to buy should be in good condition in order for you not to have to make an investment when you sell it.
Price is the most important one of the five of the keys to investing in real estate property. This is because it’s on this subject where you will make your profit, so make sure you get the best price possible to have a good investment. The basic rule is to buy the place at more than 10% below the market price. This gives for a good margin to make an awesome profit.
Financing is a little tricky, but once you get the hang of it, you can play with it in order to get deals at ridiculously low prices, to the extent of even being able to get it with no cash down. This takes a little more research and understanding which is why I suggest that you brush up on your real estate books, but what you’re basically looking for is that the seller is highly motivated to sell. This means that he is willing to take care of the larger part of the financing at a rate lower than the market rate and with no considerable big payments inside of 7 years. This makes for little cash to buy the property and for a bigger profit for you.
The last key factor which is the seller’s motivation and flexibility requires a little digging form your part. What you’re basically looking for is a highly motivated seller that is looking to get rid of his or her home. You must offer a solution to his problem and that is how you make a big profit. Be on the look out for recently divorced couples and people who are moving, which in general will be people that are eager to sell their homes. They are usually not looking for big cash to sell but instead are looking for any way to sell so that makes it easier for you to earn big bucks.
If your little chart adds up to 12 or more then you know you have a potentially profitable property. Mastering all the keys to investing in real estate property takes time and practice, but now that you know what they are, you can start to look for those gems out there ready to make your investments pay off.
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