It may not be the time to sell, but the time to buy is now. For those thinking of investing in real estate, you might want to consider a few things before signing on the dotted line. The real estate market has been yo-yoing for the last decade due to the slumps in the economy. Since that time it’s hard to drive down a residential street without seeing abandoned homes, foreclosures, and for sale signs. But as they say, one man’s trash is another man’s treasure. While some of those homes might seem like a lost cause, real estate investors could benefit from such property investments. Buying homes for cheap and flipping them is not only good for those shopping for a nice home, but for those selling in the same area.
But homes aren’t the only thing that is left to invest in. There are a number of businesses and abandoned mini malls that are just waiting for a simple facelift to get the neighborhood cliental knocking on their doors. Real estate investment opportunities like that could result in extensive business relationships. There are a few investment tips that you need to take into consideration before you start buying up every mini mall and rundown house you pass by.
First, always consider the location, not just because you want to be able to market it, but you want to be close during a remodel for inspection and supervising purposes. This will come in handy when your property is later occupied by a business or resident. If for some reason there is trouble in the area, a part of the building needs maintenance, or a rent check is late, you are not far from your investment. You will also want to make sure the area is populated and on the rise to ensure that your property sees the kind of business it needs.
Real estate investors will want to get some guidance on the financial side of things because as an investor you could likely receive certain tax savings, find out which properties will give you more for your initial investment, and help you provide a clear investment plan for a real estate agent.
Next, consult with a real estate agent. Even if you think you have an eye for property real estate, investing is not an exact science. A real estate agent would be able to tell you the market trends for the area you are considering, the kind of property that will give you a solid return on investment, and what kind of maintenance, licensing, and permit related issues you could have.
Know how to negotiate your investment based off of trending markets and interest in the community. For instance, if the property has been on the market for a while they are more than likely willing to come down on the price. Know when the seller is searching for a bidding war. If a property is set lower than market value they could be in search of multiple buyers that could essentially raise the price during negotiations. Investment in real estate is as much a gamble as the craps tables in Vegas, but high returns have been seen when everything that can be controlled is restricted.