Making the Best Out of Your Real Estate Investment

Real estate investment can be profitable at all times, irrespective of market trends. The important factor however here is to make decisions that are sound and based on thorough research. As every beginner knows, you could either invest in residential and commercial property. You could either invest to let out the property on rent or consider flipping properties. When investing in properties to be let out on rent, it’s important to consider the period of time that you are likely to hold on to your property. The longer you hold on to a property, the higher would be the maintenance and repair costs. On the other hand the value of the property is far likely to exceed the costs incurred. For example for those looking to invest in a property for about 20 years you are sure to undergo major renovations and repairs including replacing roofs etc. But if you are likely to hold on to the property not for long there is a chance that you won’t have to undergo repair costs.But the chances of the value of the property appreciating isn’t very high.

A number of real estate investors flip properties or buy a property, keep it for a short period and sell it back. The entire investment takes place within a few months. But this can be risky as well, as it’s absolutely important for the investor to offload the property quickly or he is likely to incur loss.

Immaterial of the property that you invest, it’s important for you to be mindful of a few things. For example remember to invest in a property that’s immune to recession. Properties that are immune to recession include properties that are conveniently located within close reach of schools, offices etc. Working class localities with homes that are likely to be well taken care of are a safe bet.

It’s not only the location, but also the right property that’s important for real estate investing. Although condos and luxury apartments are a good investment, remember to invest in a property that’s just the right sized with about 800 or 1200 square feet and has all the amenities required by a working class mid-sized family. These properties have the largest group of tenants, thus ensuring that the houses are almost likely to be always occupied.

For those looking to making profit from renting, the right tenant can make or break your investment. It’s important to screen every prospective tenant with respect to his criminal records, proof of income, credit check, rental history, personal interview etc. Also investing time and money on little fringe things like investing on insurance, protecting yourself against future suits, etc. help to ensure that you never go wrong with your investment.

Helpful Tips on Real Estate Investment

Are you planning to invest your money into real estate properties? Do you have plans purchasing a real property? If so, consider the tips and suggestions mentioned below.

News abound anywhere and everywhere that real estate investment is one of the most profitable business in the market. Despite the onset of recession and economic crisis, real estate investment is still the most feasible form of investment other than stocks and savings account because its price is not easily affected by inflation and economic crisis. If the price of real properties declined in one state, it does not affect other the prices of real properties in other states.

With the growing real estate industry, developers built myriad properties to give you choices. However, with the numerous real estates around, for sure you are confused on what property to buy. Bear in mind that your purchase should not be influenced by any advertisement and promotions by owners, but you should you should find one that best suits your needs and requirements.

Before you invest your money, you should conduct research and choose the right property yourself. If you can afford, you can hire a financial adviser and ask advice on what steps to undertake. Whether you purchase a property for your own use or for commercial purposes, there are several factors you need to consider before you make a purchase.

Factors that you should consider before you make a purchase:

    • Affordability – Before you source out and hunt for houses or commercial properties, you should first assess your finances. You should consider how much you can afford. To manage your finances effectively, you should make it a priority to plan your finances first. Make it a point to list down your income and your expenses. You should be realistic on your budget estimation. When I say realistic, it means you should not forget your basic necessities. The result of this move will show you how much money you can afford to spend for your purchase or to pay for your loan every month. You should also consider the amount you deposit in your savings account. Never forget to have savings because you will need it to pay for emergencies and extraordinary expenses, like hospitalization, accidents and property maintenance.
    • Location – Before you buy a property, consider the location and the purpose of having them. If you want to convert the property into a commercial space, then look for those found in areas with high foot traffic. Avoid selecting areas which are prone to floods. Check the drainage system of the property.
    • Logistics — Another factor you should consider is logistics. Choose a property which is near to your office and your children’s school. It should at least take you one hour or two hours to commute from these areas.
  • Amenities/Types of property – Assess what type of property you intend to purchase. If you want to buy an apartment or a condominium, be sure to consider safety issues. Does it have security personnel to guard your properties while you are not around? Does it have a fire exit area? Check if it has an existing electricity, water and Internet connection.

By considering the factors mentioned above, you can choose a feasible property that meets your needs and requirements.

Hunting For The Right Real Estate Investment

Making sound decisions in regards to real estate investment is vital. I would like to offer my thoughts on how to choose the best property. If you plan on investing in residential rental properties, you cannot count on your tenants being reliable. If for any reason they are unable to pay, it could take weeks or months before you are able to replace them. This is why you should be able to afford the mortgage payments on your own income.

It is very important to do your research before you make an offer on any property. Also, if you choose a run-down property, you will end up paying higher interest rates on your loan. If you plan on buying a property to flip, you have to take into consideration that fixer uppers tend to cost you more to repair than you initially accounted for. Furthermore, sometimes you will have to wait for the right buyer to come along in order to make the most of your real estate investment.

Location is by far the most important factor when hunting for a real estate investment. The area you choose will also be scrutinized by your lender. Be sure to check the comps before you make a final decision. While a licensed real estate agent will have access to the best and most accurate comps, I like to use zillow.com to get a rough idea of the value of comparable properties. You can also take a look at the birds eye or satellite view in order to get an idea of how the neighbors maintain their properties. This way you can avoid wasting time on the streets by ruling out properties that do not fit your criteria. Google maps is also a great first stop in the initial property search. By checking out street views, you can save time as well. One last thing I like to check before I head out to see homes in person is the online tax maps.

There are many factors to determining which properties are the best value. I just want to point out a couple of things I pay attention to. For rural locations, replacing wells and septic systems can cost tens of thousands of dollars for a complex system. Always do a complete inspection before closing a sale, paying extra attention to the floor joists and carrying beams of a structure, because replacing them cant also cost tens of thousands of dollars. I hope you enjoyed these tips for finding the right real estate investment.

Each keyword phrase must appear 3 to 4 times in article, once in head line. The keyword phrases that are closely related like “real estate”; “commercial real estate” and “real estate listings” can be added whenever possible in each article. Although I would prefer each keyword phrase to be as is, I will be OK if some words are inserted to make the article a joy to read.

Being Successful at Real Estate Investing

If you have ever considered dabbling in real estate investment, now is the perfect time. The current housing crisis has created an overabundance of properties for investors to choose from. While it is possible to become wealthy by investing in real estate, it is easier to fail. In fact, the majority of new investors are not successful. The reason for this is simple – they fail to research!

As with any business venture, it’s important to “learn the ropes” of the investment business before getting started. Jumping head first into this type of investing is almost a guarantee for failure. So how do you succeed at real estate investments?

The answer to that is easy; all you have to do is learn everything you can about the industry. Property investing is more than simply purchasing a low priced building, fixing it up and reselling it or renting it out. How do you know whether you should sell a property or keep it as a rental?

Knowing the current market trends is the most important thing to know; this is what allows you to decide which path you should take with your properties. If it’s a seller’s market, then it is the perfect time to buy a cheap house, do some renovations and put it back on the market. Sometimes, though, houses just aren’t selling. This can happen for a variety of reasons; just like the stock market, the real estate market tends to fluctuate.

Another thing that is important to know is when to buy. A low price doesn’t always equal a great deal. There are quite a few different factors that determine the worth of a property including the location, which amenities are nearby and of course the condition of the property.

Location as it relates to property values general means the type of neighborhood the building is in and even the specific section of the neighborhood it’s in. However, the more general location (such as the city or state) is just as important. Our country is huge, and the real estate market varies from state to state.

We all know that the Internet provides a wealth of information on virtually any topic you can think of, including real estate investing. As educational as that material can be, too much information can also be overwhelming. The best advice would be to research what you can then write down anything you don’t understand or any questions you still have. A local property investment broker in your area can help.

Real Estate Investments Make Profit

The definition of real estate is land and buildings for sale. Land can be plots of land ready for construction or land that has a strategic location which will have a potential in the near future when new property developments are needed. Each plot has its own unique characteristics and its location in a community determines its pricing. There are many ways in which one can make money from real estate investments. We are going to look at 3 areas you could venture into, which are residential, commercial and industrial properties.

Residential developments
Buying a piece of land and to construct a building is one way to generate money in the real estate market. Land that is reserved for residential purposes has in some countries strict guidelines and rules, how the house should look like, starting at the height of the building, to the size of the garage or car port, to guidelines that determine if a front garden is allowed or not. Therefore it is very important to inform yourself at the city hall that publishes these facts before you hire an architect and not ask for a building permission that is doomed to be accepted when you hand it in. If you build a house to sell it or to rent it out, the layout and the overall look has to cater the taste of the general public. Modern, light buildings with built-in kitchens and nice bathrooms are always desired.

You could also buy a larger plot and build two under one roof houses on it and sell one-off, when the construction shell is completed and the interior work starts. This is a way to finance the rest of the construction of your own home and leaves your buyer the opportunity to build the house of his own dreams.

Residential developments such as high-rise or low-rise condominiums with a community swimming pool, tennis court, maybe even equipped with an own fitness-center, complete with sauna and an own underground parking are wanted by people who look for long-term and short-term lease housing. Guarded by security that monitors the incoming and outgoing traffic give them a feeling of being safe and these type of buildings have the highest potential to generate a good yield when they are located in touristic areas and areas of high population density, as they provide a life-style that is associated with luxury and are therefore always high in demand.

Commercial real estate
The best option is to buy commercial buildings that have been abandoned and you rehabilitate them such that they regain their value. If the location is good for business your property will very soon find a new business owner yet remind yourself location is key before you start this venture.

Industrial properties
are also valuable, they will cost relatively less to construct than commercial properties yet following up laws to prevent pollution and an extensive paper work has to be completed in most developed countries. Each industry has its own requirements which needs to be respected when the building is constructed, so you should know which market is in need to expand. You can buy industrial land and construct a factory hall or a warehouse on it and offer it for rent. Leasing of real estate in the industrial market will allow you to make a good yield on your investment. You will have the option of leasing your property for a specified period of time, when the contract terminates you can open room for buying negotiations, which are in your advantage, as nobody likes to move.