Real Estate Investment Article
The real estate investment article below is written by former Realtor, Jamie Madison who has a website offers articles on home buying tips that you can apply to your real estate investment strategies.
In the article below, you will learn what to look for in a quality home. Whether it be for you to live in or to rent out – any real estate you purchase is really an investment so it pays to know what to look for.
Visit our other articles for more on real estate, moving, job hunting and financing.
Title: How To Become A Savvy Real Estate Investor
Author: Jamie Madison
Article:
If you’ve turned on the television lately, at some point you'll
hear the experts praising the virtues of diversification. Real
estate has long been considered a conservative, long-term
strategy to growing wealth. While some seasoned real estate
investors make it look easy, to be successful, beginners should
follow some basic principles.
Learn all you can. Consider attending a seminar or talking with
individuals who are experienced in real estate investing. Look
for people in your area or search for investor information on
your favorite search engine.
Before committing your cash, you should have a fundamental
understanding of real estate. For example, be aware that, in
general, investment properties are not liquid investments.
Barring exceptional circumstances, real estate does not sell at
a moment's notice. It could take days or months to sell a
property, depending on the strength of your local market
conditions.
Consider your financial goals. It is possible to make a lot of
money. However, you need to determine how hard you are going to
work to do it, and how long you intend to keep each property.
With each investment unit, you'll need to take into account cash
flow, appreciation, equity, and depreciation. Talk with your
accountant about tax liabilities and benefits.
Consider cash flow. You'll need to have enough capital on hand
to cover any short-term losses due to vacancies between tenants,
repairs, property management, taxes, mortgage, etc.
Start small. Look into buying a single family home or a duplex.
Leave large apartment buildings and commercial properties to the
professionals.
Inquire at your local Chamber of Commerce about companies
relocating into or out of the area. Company movement is one
indicator of demand for rental and/or office space.
Find a property that will be in demand when you are ready to
resell. Look for a moderately priced home on a quiet street with
three or four bedrooms, two bathrooms, and a garage.
Research the property. The most common way first-time investors
lose is by failing to investigate a property thoroughly. Look
beyond the front door. Investigate the reputation of the school
district, the crime rate, and plans for expanding a nearby
highway or developing vacant land. Check out Ask a local real
estate professional about the area, its history, and how fast
(or slowly) properties are moving. Find out the tenant demand in
that market.
Inspect the home you're considering for signs of water damage,
such as stains on the ceiling and crinkling or gathering
wallpaper; open and close every door and window; and check all
electrical sockets by plugging in an appliance. Get an
independent home inspection, roof inspection and termite
inspection. Unexpected repair costs can eat away resale profit.
Because even the best inspection can't always predict problems,
try to set aside some of the rental income for unexpected
repairs.
Spend time driving the streets of the community noting the
condition of other properties. Are lawns maintained? Are roofs
in good shape? Are homes kept up?
Be ready to make fixes quickly and respond to the renter's
needs. If you're not prepared to be a hands-on landlord,
consider hiring a property management firm.
Find a real estate professional who has experience in investment
properties in your market. They can pass on valuable information
about rental prices in your market and the sale prices of other
rental properties in the community.
Remember, investing in a property is much different than living
in one, and while emotion and attachment can be prime motivators
when it comes to homes, it is return on investment that counts
when investing in real estate.
About the author:
Jamie Madison is a former RealtorŪ who provides valuable advice
for prospective homeowners. Get insider information when
searching for a new home or applying online for mortgage loans.
Claim your *FREE* Report – “99 Home-Buying Tips” at
http://www.FreeHomeBuyingResources.com
| 
