Bummed about missing the real estate boom? Hope is on the way! These days, there is more opportunity in real estate than most any other investment possibility. In this entry, we will offer up a few tips and tricks to get you into the game.
1 – As you are likely aware, the real estate market is not what it used to be. However, one constant need among Americans still lies in a place to live… and this applies especially to affordable properties! Down markets present the opportunity for high profits; you just need to know where to look!
2 – Be careful and do your research. What appears to be a great deal, may quickly turn into a money pit. Educate yourself on the property values of homes in the neighborhood of your potential purchase and compare them to the cost of property + remodeling.
Take the time to locate a real estate agent with experience in foreclosure purchases that has your best interests at heart. Your relationship with this individual may be just as vital as the one you hold with your accountant or attorney. Be diligent and avoid settling for someone who doesn’t sit well with you.
3 – Determine your price range, the type of property, and the goals for this investment. Will you keep the property as a rental? Will you flip it after the remodel is complete? Are you purchasing for your own use? These questions must be answered before moving forward with the purchase process.
4 – Short sales and foreclosures are typically sold AS IS. As such, you must hire a qualified property inspector to evaluate the property prior to signing anything. If you purchase without an inspection, you MUST be certain of what you’re getting into.
5 – Once you’ve made it through the purchase process, the fun can really begin! Outline a strategy for renovations and move quickly to ensure a better bang for your buck. Set a budget and stick to it. Ask friends and relatives for recommendations on area contractors and call up a few to obtain price estimates. If a contractor specializes in one area, but not another, ask them for recommendations on someone who can complete the project. Most contractors will have a fairly good idea of other quality specialists and will be able to point you in the right direction.
6 – Keep in mind: The majority of home loans take effect 45 days after closing. Rehabs typically take around 90. The faster you can get your renovation completed, the quicker you’ll be able to turn a profit! Get that puppy listed and start enjoying the good life!