Looking to find the perfect investment home? Here are some tips to do it the right way!
1. Do Your Research
It is important to know what you’re getting yourself into. Do your research. Buying an investment property is not an easy task.You must become an expert in all the information regarding real estate in that specific area that you would like to invest in a home. Taking advice is not bad but it is also not the only source of information you should rely on. Read books about successful real estate investors. Learn what to look for in a good investment property. You can also try looking for classes or seminars on how to perfect the process of real estate investment.
2. Have Different Resources
Sure, now and then you can work with a real estate agent who handles foreclosures and gets a good deal. Remember though that these will be “listed” foreclosures on the MLS, Multiple Listing Service. You and all of your competitor investors have access to the same information, so competition will likely drive up your cost of acquisition. If you do your own marketing and locate motivated sellers, you have a greater chance of negotiation a good deal. Another approach is to work with an experienced real estate wholesaler. They are investors too, but they are experts and finding great deals that they can flip to rental property buyers at a below-market-value price. Just check their references out and be sure they do know what they’re doing.
3. Equity Is A Must
Walking into equity is a must when investing in a property. It is important to have your back covered when making such a huge financial decisions. Home equity is the value of ownership built up in a home or property that represents the current market value of the house less any remaining mortgage payments. This value is built up over time as the property owner pays off the mortgage and the market value of the property appreciates. NEVER buy at retail market value. If you can’t get the home at a 10-20% discount to its current market value, don’t do the deal. You want to leave the closing table with that equity as either future profit or a cushion should you have to sell before your initially planned liquidation date.
Take Your Time
We know that finding a good deal is important and a must do when looking for a perfect investment property but is also important to note that it is not smart to rush into deals without having the proper backup or support. The human mind is conditioned to make choices because of impulse decisions. You get excited, motivated and even hopeful and decide to buy a home at an unbeatable price but, in the hype of it all, you forget to follow all the steps in the home buying process and that leads you to lose thousands of dollars. Don’t lose money, make money!
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Here at Premium Properties, we’re always looking for the best ways to help our clients. That’s why we are the best real estate company in Central Florida!
Any questions? Please feel free to reach out to us:
Premium Properties Real Estate Services
564 N Semoran Blvd Orlando, FL 32807
Call us (407) 380-2800 or visit www.premiumproperties.com
