The more you know about real estate, the better chance you have of investing your money in the right property. All the keys to investing in real estate property are location, property condition, price, financing, and the seller's motivation and flexibility. There is a fireproof way of determining if a property is good for investing in it. Take each key factor and assign a value between 1 and 3 for each one, where 1 is the lowest score and 3 is the highest. If you add your results and you have a value of 12 or higher, then you're on the right track.
With location, make sure the place is located near all the important means of transportation and other perks like shopping malls, schools, entertainment venues, parks, good landscape and other important services. Be on the look out for at least a middle class suburban neighborhood or better. The houses around it should have similar pricing. All these things indicate it's in a good location.
Regarding property condition, it should be new or fairly new. It can be old, but with recent renovation, clean inside and outside, and with good landscaping. Pipes, electricity and roofing need to be in good state, and new components have to be replacing major items like toilettes, doors, porches and so on.
Price is definitely one of the key factors when investing in real estate and it's probably the biggest one. This is what determines if you're going to make a juicy profit or not. The only thing you must consider is to buy the place at a price that is more than 10% below the market price. With that in mind, you're in for a good profit.
Financing is a little tricky, but once you get the hang of it, you can play with it in order to get deals at ridiculously low prices, to the extent of even being able to get it with no cash down. This takes a little more research and understanding which is why I suggest that you brush up on your real estate books, but what you're basically looking for is that the seller is highly motivated to sell. This means that he is willing to take care of the larger part of the financing at a rate lower than the market rate and with no considerable big payments inside of 7 years. This makes for little cash to buy the property and for a bigger profit for you.
The last key factor which is the seller's motivation and flexibility requires a little digging form your part. What you're basically looking for is a highly motivated seller that is looking to get rid of his or her home. You must offer a solution to his problem and that is how you make a big profit. Be on the look out for recently divorced couples and people who are moving, which in general will be people that are eager to sell their homes. They are usually not looking for big cash to sell but instead are looking for any way to sell so that makes it easier for you to earn big bucks.
Following and analyzing these criteria, you are sure to assess if the property is worth getting into. Minimize your risk of investment by knowing well five of the keys to investing in real estate property. Broaden your knowledge and step by step become a better investor in real estate.
With location, make sure the place is located near all the important means of transportation and other perks like shopping malls, schools, entertainment venues, parks, good landscape and other important services. Be on the look out for at least a middle class suburban neighborhood or better. The houses around it should have similar pricing. All these things indicate it's in a good location.
Regarding property condition, it should be new or fairly new. It can be old, but with recent renovation, clean inside and outside, and with good landscaping. Pipes, electricity and roofing need to be in good state, and new components have to be replacing major items like toilettes, doors, porches and so on.
Price is definitely one of the key factors when investing in real estate and it's probably the biggest one. This is what determines if you're going to make a juicy profit or not. The only thing you must consider is to buy the place at a price that is more than 10% below the market price. With that in mind, you're in for a good profit.
Financing is a little tricky, but once you get the hang of it, you can play with it in order to get deals at ridiculously low prices, to the extent of even being able to get it with no cash down. This takes a little more research and understanding which is why I suggest that you brush up on your real estate books, but what you're basically looking for is that the seller is highly motivated to sell. This means that he is willing to take care of the larger part of the financing at a rate lower than the market rate and with no considerable big payments inside of 7 years. This makes for little cash to buy the property and for a bigger profit for you.
The last key factor which is the seller's motivation and flexibility requires a little digging form your part. What you're basically looking for is a highly motivated seller that is looking to get rid of his or her home. You must offer a solution to his problem and that is how you make a big profit. Be on the look out for recently divorced couples and people who are moving, which in general will be people that are eager to sell their homes. They are usually not looking for big cash to sell but instead are looking for any way to sell so that makes it easier for you to earn big bucks.
Following and analyzing these criteria, you are sure to assess if the property is worth getting into. Minimize your risk of investment by knowing well five of the keys to investing in real estate property. Broaden your knowledge and step by step become a better investor in real estate.
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