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Finding and Evaluating Property For Real Estate Investment
Real estate investment is a growing, fast-paced market. New tools have made it incredibly simple to locate, evaluate, and compare many different properties from a variety of sources, side-by-side. You can search for your next home from comfort of your current living room, and in the privacy of your underpants.
Even in a healthy market, though, there will always be risks associated with property management. To maximize your ability to turn investments into profits, consider these tips:
Begin your search online. The Internet has revolutionized the real estate market. Virtually every realtor posts and updates regular home listings on their website, searchable according to your price-range, complete with pictures and a full description of amenities. Many new listings include virtual tours, which take you on a 360 degree tour of the house. You can search for those diamonds in the rough around the corner, or from thousands of miles away. You can also limit your search to those properties ‘For Sale By Owner’ (FSBO), to avoid realtor fees.
Visit Realtor and estate agent businesses. For a service fee, you can gain access to a multiple listing service (MLS), which will provide you with the very same information that those agencies use. Some locations require a license for this information, even if you have the cash, so be sure to ask around.
Be prepared for some ‘leg work’. You can search for, finance, and purchase houses from your computer these days, but in order to properly assess the value of a property, you must visit its location. Speak with some of the neighbors, especially those adjacent to your property. Maybe they know how well the previous occupants took care of the place, whether or not the yard turns to a swamp in the rain, and so forth. Plan a few trips, in order to visit the area in different weather, and at different times of day. This will help to avoid costly problems. Check for leaky roof structures during a rainstorm.
Once you have made an informal inspection of the premises, you may strike a contingent deal, which is dependent upon a satisfactory professional inspection. Find a reliable, experienced individual, even if it costs a bit more. Peace of mind here is worth every penny, and it couldn’t hurt to establish a connection with local professionals. You may very well find individuals whom you use frequently, time and again.
Learn as much as possible about the business, become familiar with some of the more important facets of a thorough property inspection. And review the report carefully. Record major and minor flaws, leaky plumbing or roofing, stained carpets, damage to walls or floors (note water damage), malfunctioning air conditioning or heating systems, etc. Be weary of standing water in basements and/or near foundations.
In this business, virtually everything is negotiable. There are no hard-and-fast rules to clearly indicate who is responsible for repairs, if anyone. Very few -- if any -- properties are perfect. Be realistic in your expectations, and weigh your options carefully. Do the math. If the associated costs overpower the profit you hope to turn, it would be wise to continue your search elsewhere.
Happy hunting!
About the Author: Paulie Sabol, often called the ‘legal bank robber’ for his real estate financing and
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