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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.
When analyzing location, check out if it is in a place of easy accessibility to all necessary amenities and transportation, if it's at least a middle class suburban neighborhood, if houses around it are in similar price range and if there is good foliage and landscaping. These are all good indicators that the place you are checking out is 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.
One of the most important keys to investing in real estate is the price. There is really one basic rule on this subject if you want to be a good investor. The place should be at 10% or more below the market price. Do your homework and ask the seller this information or get it out of neighbors and other realtors.
The toughest subject to understand is usually financing, which is why it is important to read books about it in order to master the concepts and have clearer picture of what you're looking for. In a nutshell, what you need is to find a seller that is willing to handle the bigger part of the financing with a rate lower than what is expected of the market and with no big payments in the next 7 years. This allows you to spend less cash and make a bigger profit.
Finally, comes the seller`s motivation and flexibility. Evaluate the buyer with questions. He or she has to be in no need for urgent money. They should be looking for a quick solution to sell their property without major need for cash. It`s usually divorced people, folks that have to move suddenly or they have inherited the property and are just tired of spending money on it.
When all these elements come together and add up, you have in your hands a diamond that you can buy and make the most profit when you sell it. Analyzing the keys to investing in real estate property is essential to having success in the business. Reading more into these elements will further make you a better investor or realtor. This is just the tip of the iceberg for a very lucrative investing area.
When analyzing location, check out if it is in a place of easy accessibility to all necessary amenities and transportation, if it's at least a middle class suburban neighborhood, if houses around it are in similar price range and if there is good foliage and landscaping. These are all good indicators that the place you are checking out is 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.
One of the most important keys to investing in real estate is the price. There is really one basic rule on this subject if you want to be a good investor. The place should be at 10% or more below the market price. Do your homework and ask the seller this information or get it out of neighbors and other realtors.
The toughest subject to understand is usually financing, which is why it is important to read books about it in order to master the concepts and have clearer picture of what you're looking for. In a nutshell, what you need is to find a seller that is willing to handle the bigger part of the financing with a rate lower than what is expected of the market and with no big payments in the next 7 years. This allows you to spend less cash and make a bigger profit.
Finally, comes the seller`s motivation and flexibility. Evaluate the buyer with questions. He or she has to be in no need for urgent money. They should be looking for a quick solution to sell their property without major need for cash. It`s usually divorced people, folks that have to move suddenly or they have inherited the property and are just tired of spending money on it.
When all these elements come together and add up, you have in your hands a diamond that you can buy and make the most profit when you sell it. Analyzing the keys to investing in real estate property is essential to having success in the business. Reading more into these elements will further make you a better investor or realtor. This is just the tip of the iceberg for a very lucrative investing area.
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