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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 - Introduction
Developing a Profitable Real Estate Investing Strategy
Real estate investment seems to be getting more popular. Reality shows, such
as Flip This House and other do it yourself programs that teach you how to
upgrade or repair, or renovate are drawing more and more potential investors
into the market.
When you see how a person buys a house, makes some changes, and then resells
that same house, in a short period of time, at a huge profit, you can really
become tempted to dive right in with your own real estate investing and flipping.
But there is a lot to real estate investment that isn't shown on those shows
- because it is confusing, because there isn't time for it, and it may show
people that there really is work involved.
There is one golden rule in real estate investing: Buy low and sell high.
This is what you must first learn to do before you can be successful in real
estate investing. It is very easy to get carried away, especially if you
don't have experience in real estate. While those shows always portray success,
there are more people who jump into this type of real estate investment,
and quickly discover that they are going to lose the majority of their
investment. In fact, they find that they will be lucky to unload the property
and break even!
A good investment property will always be undervalued. This doesn't necessarily
mean that it is selling below the current market price. It means that the
property is lower priced, because the seller does not see the potential value
of it. For instance, the seller may not realize that if they added fresh
paint, and new carpet, for about a total of $3000, that the value of the
property could jump several percentage points.
But investment properties are also valuated by comparing them to other properties
that are similar. You also have to determine the value of homes in that area,
the economic condition of the area, and even the neighborhood itself. You
should also consider how long the property has been on the market before
you invest. Remember that you are buying low - and if the property is priced
low, but has been on the market for a great deal of time, there may be something
that you are missing.
One mistake that many newer real estate investors make is looking at the
property from their own point of view. You may hate the landscaping, but
that landscape may be a selling point for a prospective buyer. This must
be considered. When changes are made, your personal choices, likes, and dislikes
cannot play into it.
You also need to keep an eye on trends in the area that you are considering
investing in. You need to know what types of properties are moving faster
than others, and what features buyers are looking for the most. By having
this information, you can quickly and easily upgrade the property to suit
the current market.
Budgeting is another issue that plagues real estate investors. Most have
found that the more time they put into the research, the more profits they
make. You have to know what you can afford to spend, before you ever purchase
the investment property. You also have to know how much renovations, repairs,
and upgrades are going to cost, to ensure that those costs fall within your
budget. Some believe that you should figure up the renovation costs, and
then double or triple that amount just to be on the safe side.
Really look closely at the property, and of course, get a professional home
inspection done to find out if there are any problems that are not visible
to the naked eye. With a home inspection, you can save yourself a great deal
of money, stress, and heart ache. You can look at the obvious yourself -
new paint, new carpet, updating counters, and things of this nature are things
that you can easily see need to be done.
Above all, remember that real estate investment is a business. You have to
treat it as a business by researching, creating and staying within a budget,
and not letting your personal emotions play into your decisions.
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Articles
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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
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