|
Share this Article:
10 Important Tips to Successful Real Estate InvestingCategory: Real Estate News | Permalink Published: Monday, July 12, 2010 01.) Compare property values and rents: The best way to determine the market value of the property is to find out the selling prices of nearby properties in the community. The same applies to properties for rent. A low cost is regularly justified by a sensible rent; renters who can meet the expense of a higher rent can afford to buy as an alternative, so reasonably priced rent is a must. 02.) Pay attention to tax laws: Don't base your tax investment on current tax laws. The tax codes change frequently, and a good investment is a good investment despite of the tax code. The right property with the right financing is what you must look for. 03.) Focus in something you know: Start in a market your already familiar with. Whether the focus is on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you'll benefit from the experience by specializing in one aspect of investment real estate properties. 04.) Know the costs before getting started: Know the ins and outs of the financial statements. Ask questions. What are operating expenses? What are loan payments? Vacancy costs? Taxes? What does the cash flow statement look like? These questions are important to tackle prior to making a solid investment. 05.) Know where your tenants are coming from: If the rent has gone up recently, it's possible that your tenants may be considering moving. Some tenants who have short-term leases may be living there simply to attract unsuspecting buyers. It's important to collect the tenants' security deposits at closing. 06.) Assess the tax situation: Taxes are an integral part of successful real estate investing, and they often make the difference between a positive cash flow and a negative one. Know the tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax advisor. 07.) Investigate insurance coverage: If a seller's coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price. 08.) Confirm utility costs: Ask the local utilities to verify recent utility expenses, especially if any of these costs are included in your tenant's rent. 09.) Consult your accountant: Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code. 10.) Inspect: Make sure that you always perform a thorough inspection of the property before buying it. Never, ever buy any property without at least examining the site. In some cases, hiring professional inspectors to examine the structural mechanical system may be a sound investment. Other Recent Articles1.) Before agreeing to handle a task from a client: Make sure that you're the most qualified person to deal with it. If a client wants to appoint you for a task beyond your field of knowledge, suggest someone else who could carry out the task better rather than putting your reputation at risk. Who knows, maybe later down the line that same client will call and seek help in your area of expertise. Studies Say Minorities Hurt More By ForeclosuresCategory: Real Estate News Published: Monday, July 05, 2010 According to a new study, recent African-American and Latino home borrowers were highly more likely to lose their homes to forclosure than those who are non-Hispanic whites throughout the continuing housing crisis, regardless of their income. As their income increased, in fact, minority horrowers foresaw the probability of foreclosure growing even larger in contrast to non-Hispanic white borrowers in the identical income group. Tax Credit Closing and Flood Insurance ExtensionsCategory: Real Estate News Published: Thursday, July 01, 2010 Today the National Association of Realtors praised Congress for the passing of two bills to extend the home buyer tax credit closing deadline and reauthorize the National Flood Insurance Program. Both of the bills cleared the House beforehand and were accepted by the Senate last night. THe bills are now headed to the president for his signature. Credit scoring is very important to the mortgage process. Behind the situation, a battle is rampaging over who can place claim to that process. The Fair Isaac Corp (FICO) was rejected a new trail concerning what it claims to undoubtedly be it's trademark; the act of rating an individual's credit on a scale of 300 to 850. Should You Buy Or Rent A Home? Cost Gap NarrowsCategory: Real Estate News Published: Thursday, April 29, 2010 Housing costs and depleted interest rates have formed a perfect time for many buyers to purchase homes, and a recent week-long glance at homeownership validates it. The nationwide analysis illustrates that the variation between monthly rents and mortgage costs is at it's lowest point in just about 20 years. Call Us Today!
|
