Why You Should Invest In Real Estate

Real estate investing can be very risky, but it can also be highly lucrative. Yes, location, location, location is hugely important, but so who you are dealing with is even more important. However, the world of real estate is filled with shady characters. These are the ones you see on late night telly, promising you untold riches.

 

If you do really want to invest in realty, you must have the right things. To get started, you will firstly need to have investment capital. Also, make sure that you get to know the real estate market and learn about the neighborhoods you are interested in.

 

You also have to make sure that you don’t take too many risks. Real estate is never risk-free, but some have much higher risks than others. Avoid tenant-in-common, real estate development, fixer uppers and private real estate funds for instance. With these options, it is highly unlikely that you will see a positive return. Instead, look for good properties and title them to yourself. Of course, this takes a lot of research, analysis and due diligence. Try to find a property that you don’t have to manage intensively and that doesn’t take up too much of your time. Hence, you don’t want to invest in a holiday home, a college home or a property in a bad neighborhood for instance. A better option is a property that someone with a good credit profile is likely to rent for a long period of time. This does require a commitment on your side to treat your tenants with the respect they deserve. There will always be issues with rental properties, but so long as you resolve them quickly, you should have a good investment.

 

You can also decide to look into a real estate investment trust (REIT). This means you need less investing capital up front, but the returns are not as high either. Working with REITs basically means you invest in other corporations. This can be anything from a construction company to a theme park. A REIT is also listed on the stock exchange and NASDAQ. Basically, they are like mutual funds but focus solely on real estate. Before investing in a REIT, there are a few things to learn about. Consider the key holdings’ economic conditions for starters. Find out how the REIT has performed in the past. You should also consider their future plans. Also find out who the REIT is managed by and what their experience is. A final thing to look into is the state of the current real estate market and how this will affect the performance of the REIT.

Resources:

Why You Should Work With A Realtor

Before you start looking for a realtor, you need to understand what representation actually is. If you want to sell your home, then you may be on the lookout for a specialized seller’s agent. If, on the other hand, you want to buy a property, then you need a buyer’s agent. Whether you choose a buyer’s or seller’s agent, they have a legal duty to represent you as soon as you sign a contract.

 

Your realtor’s experience is one of the most important things to look into. Usually, those with the most experience tend to deliver the best service. If you find someone who was operating before the financial crisis and is still in business today, you are on to a really good one. Next, make sure that the experience they have is relevant to your own needs. After all, if you are looking to move up the property ladder due to family expansion, your needs will be very different than if you were to look for a first home for your college-going child. Secondly, you need to find out how your realtor can help you in terms of your demographic and geographical needs. For example, if you want to become a rancher, you need to find a realtor that is able to understand the different types of land, how it has been produced and what the homestead is like. If, however, your interests lie in historic or listed buildings, you will need a very different type of realtor.

 

If you want to buy a property, do not work with the realtor whom the seller has employed. This is because if you reveal any information that you could use in negotiations, the realtor would be obliged by law to pass that on to the seller as well. Similarly, if you want to sell, you also need a different realtor. You should work with someone that represents just you. Start by asking people you know whether they can refer you to a realtor. You can also contact the NAR (National Association of Realtors) in order to find a professional for you. The greatest benefit of working with a NAR agent is that you know they are both professional and ethical. Always make sure you contact a range of different realtors before making your decision. Make sure they have a great understanding of your needs, so they an start making suggestions too. These conversations can help you determine just how much a realtor knows about a specific neighborhood, house prices and so on. If you want to sell a property, you must find out how well the realtor has performed in the past. What you must find out is whether they tend to sell below, on or above the asking price.

 

Hopefully, this information will have helped you find the right realtor for you. A realtor’s job is to help you find your dream home. Hence, it is vital that you find someone that you believe will do their job properly.

Resources:

3 Things To Consider Before Home Buying

If someone is eager to sell their property, they may keep a few defects hidden. Although a professional inspector would pick up on any problem, it is expensive to hire one for each viewing. But don’t worry because a potential buyer like you can do a bit of inspecting yourself and here are indicators showing what house to avoid buying.

 

First of all, check the neighborhood. It cannot be underestimated how important it is to check on this. Is it a growing community, or is it in decline? If you notice many homes are being foreclosed and local businesses are closing, then the community is declining. Also make sure that you visit the area at different times and on different days. This will also give you an idea of what traffic is like at different points. Do also come at least once at night, so you can see whether the streets are safe and quiet at night or not. Also make sure that you get a local crime report from the police.

 

You are now ready to see whether the property was looked after properly. Signs of regular maintenance are hugely important. If it looks run down from the outside, it is likely that the inside isn’t in a much better condition either. Also, look at the wiring. Real issues can only be identified by a qualified professional, but you can get a good idea yourself. For instance, flickering lights and hot or warm outlets are signs of a bigger problem. Owners may be trying to hide a problem if you notice that single walls have been painted very recently. Next, look closely at the windows. If a window is condensed or moldy, or it opens with difficulty, that may be a sign of very expensive problems.Never even consider purchasing a property that you cannot see in full. If any structural work has been done on the property, you need to make sure that it was done by someone who was fully qualified to do this.

 

At the end of the day, only you can decide whether or not you should purchase a property. Plus, it is certainly true that a home with problems is often a home that can be sold at an even greater discount. However, if you find you have purchased a true money pit property, or that it is impossible to sell it at a later date, then is it really worth it? Homes, whether purchased as an investment or not, are places for people to live in, which means they have to be inhabitable. Naturally, it is vital that you also check the property itself, but don’t forget just how important the neighborhood actually is. A property inspector is all you really need in order to look into the condition of the actual property after all. When it comes to checking out the neighborhood, however, it isn’t so much about cold, hard data, but rather about personal feelings and emotions and whether or not you like it.

Red Flags To Look Out For When Buying A Home

We all know that interest rates are still incredibly low. Also, home prices are perhaps on the rise, but remain very interesting. However, it is important to understand that these two factors do not automatically make any property a good purchase. The market is, at present, in favor of the buyer. However, you do have to exert due diligence before you buy. The potential issues you may uncover when researching a property could be serious. Sometimes, this means that you need to fix a problem, but at other times it means that you shouldn’t buy. There are two factors in particular to be aware of.

 

First and foremost, think hard before you buy a “fixer up.” These properties are often very cheap, which makes them very attractive. Often, we believe that the things that need fixing are things we can do with our own DIY skills. However, you are likely to find that you will need to bring in qualified professionals to really do the work. Unfortunately, these professionals cost a lot of money, often more than you may have budgeted for. Secondly, be very careful of properties that have clearly had DIY adjustments. Although a DIY job can look great on the surface, it is likely that it actually has a whole lot of problems.

 

Then, you need to look into things that may have caused damage to the property that are very hard to fix. Some of these issues include water damage, pest damage, asbestos, mold and faulty wiring. Sadly, in order to see these problems, you may require quite specialized skills yourself. It is very much possible that the sellers don’t know these problems exist. In the cases where they do know that these issues are present, they may take steps to hide them. All that needs to be done in order to hide problems like this is a bit of cleaning and reducing power usage. Besides organizing a professional home inspection, what you can do is speak to members of the community. They will be happy to tell you about any historical issues that have occurred in the area. Generally speaking, big issues like pests, water damage and mold happen in more than one house at the same time.

 

When push comes to shove, you are the only one who can work out whether or not you want to purchase a property. Additionally, if you find that there are certain problems, you could use this as a negotiating point to drive the price down. On the other hand, if you then have to pay even more money to fix it up, or if you can never sell it again, then it was a waste of money. Do always remember that a house is more than just bricks and mortar, but rather a place for people to build memories in, and those should be good memories. Although it is certainly true that you should look into the condition of the actual property, focusing on the neighborhood is equally important. A property inspector is all you really need in order to look into the condition of the actual property after all. When it comes to checking out the neighborhood, however, it isn’t so much about cold, hard data, but rather about personal feelings and emotions and whether or not you like it.