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Beginners Real Estate Investing Guide
Real Estate Investing - Ask
Questions Before Making an Investment
First Time Real Estate
Investor
Real Estate Investing - Planning
Your Investment Strategy
How to Find Real Estate
Investment Properties
Getting a Professional Home
Inspection
Large Profits From Inexpensive
Real Estate Repairs
Real Estate Investing - Costs
and Fees
Real Estate Insurance
and Risk Management
Real Estate Investment Risk
Part 1
Real Estate Investment Risk
Part 2
Getting The Best Return For
Your Investment
Creative Financing
For Real Estate Investors
Real Estate Investment Tax
Considerations
Real Estate Rental Properties
- Great Investment or Nightmare
Real Estate Foreclosures - Great
Deal or Headache
Flipping Real Estate for Profits
Slow Return On Real Estate
Investments
Negotiating for the Best Possible Real Estate
Deals
Real Estate - A Time to Buy and a Time
to Sell
Creating Your Real Estate
Investment Strategy
Investing and Growing
Your Real Estate Portfolio
Commercial Real Estate
Investing
Real Estate Marketing
Understanding Real Estate Law
Do You Need An Real Estate Agent?
What The Real Estate Mortgage
Lender Sees
Do You Have A Career In Real
Estate?
Rural or Urban Real Estate
Investments?
Real Estate Investing on the
Internet
Real Estate Investing
- Property or Paper? |
Real Estate Investing - Getting the Best Return for Your Investment
Everyone who plays the stock market, or even has a passing interest in the
stock market, knows that you buy low, and sell high. This is true in the
world of real estate investment as well. Unfortunately, in real estate, this
is very hard to achieve. But there are ways that you can get the best return
for your real estate investment.
When investing, you have to learn to keep your cost low, and to attract people
who are willing to pay high. This is true for any investment or business,
and make no mistake about it - real estate investment is a business!
Let's start with keeping your costs low. This starts when you purchase a
property. Obviously, you want to get property for the lowest price possible.
This doesn't mean buying low value property. It means buying high value property
for a low price. The first way to do this is to use inspections. Professional
home inspections are vital before purchasing real estate - even for an
investment.
You can either take a home inspection course yourself, or hire a professional
home inspector. Hiring a professional can cost several hundred dollars, but
it is money well spent. A good inspection can not only keep you from investing
in a property that either is not worth the asking price, or would cost too
much to repair from an investment viewpoint, but it can also be used as a
bargaining tool on the purchase price.
Once you've made a purchase, do as many of the repairs as you can yourself.
Don't make the mistake of taking on a repair job that you are not skilled
enough to do! This could lower the value of the home, or make it more expensive
when you eventually have to call a professional in. If you are skilled enough
to do the work, that's great. It will save you a lot of money. If you are
not, get several estimates - and referrals - and get it done right the first
time!
Note that individuals or small contractors often cost less than larger well
known contractors - because they have less overhead. They are often just
as skilled as the bigger name guys, but make sure that you get references!
Also shop around for materials - even if you hire a contractor. Hire one
that will use the materials that you select. Look for sales. Find structures
that are being torn down, and see if any of the materials are salvagable.
Even see about buying used materials when possible.
Save money with your financing. Shop around for lenders, and go with the
one that offers you the best deal. These days, banks and mortgage companies
will compete for your business, if you are a good credit risk. Take advantage
of this! Check the fees that you are or will be charged! Don't pay application
fees. Don't pay title and insurance fees through your lender or potential
lender - get your own title search done and get your own insurance. It will
cost less.
Shop around for all services, and look at the additional fees that they will
charge. Always read the find print. Ask about additional fees. Shop for your
contractors, your lenders, your title company, your insurance agent, etc.
Always consider your choices carefully, and don't be afraid to look outside
of your location for the best deal.
The more you know, and the more you can do, the less you will have to pay
others for their skill and knowledge. For instance, if you know real estate
law, you don't need a real estate lawyer. If you know contract law, you don't
need a lawyer for that either. If you know accounting and tax laws, you don't
need an accountant. If you know how to do your own home inspections, you
don't need to hire one. Learn as much as you can about your real estate
investment business, so you can pay others less (or not at all).
Always be fair when dealing with others. For instance, when negotiating a
price on a property, of course you want the lowest price you can get, but
don't use deceptive practices to get a lower price. Compromise is key, and
you don't have to lie or cheat to get others to negotiate.
When you own a property that you are thinking of selling, you need to take
a good, hard look at it, and determine what low cost things you can do to
sell the property. For instance, a furnished and decorated home often sells
faster - and for a higher price - than an empty home. See about purchasing
some second hand furnishing and decorations, just make sure that they aren't
cheap looking. Once the property has sold, move the items to storage for
use at the next property.
When showing a property, play some music softly in the background. Provide
some snacks. Make it as homey as possible. Include some flyers that have
pictures of the home, and the contact information, as well as other information
about the home that your guests can take with them when they leave.
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Beginners Real Estate Investing Articles
How to Advertise a Rental
Property
How to Build Equity
in any Real Estate Market
How to Find Motivated
Sellers
Developing a Profitable Real
Estate Investing Strategy
Bird Dogging: Getting Started in
Real Estate Investing
Buying Your First Home
Using Lease Options to Purchase Real
Estate
Real Estate Foreclosures
Increase Your Net Worth Through
Real Estate Investing
Interest Only Mortgages
Real Estate Investing
No Money Down Real Estate
Investing
The Power of the Lease Option
Real Estate Investing Tips
Real Estate Investments
Refinancing Your Mortgage
Loan
Paying Your Mortgage
Selling Your House without a
Realtor
"Subject To" Real Estate
Financing
Using Trusts as a Real Estate
Alternative
Search for Beginners Real Estate Investing Information
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