Real estate investment can be a vehicle for short or long term investing. You may choose to purchase, refurbish and flip a property or buy, rent and hold.
Regardless of your investment strategy, to realize any profits, you'll have to make sure each property you purchase is a moneymaker. Knowing what to look for will save you from making costly mistakes.
Here are some tips for new home buyers or real estate investors looking to buy a home for less than market value:
* Compare prices. After finding a potential investment property, you'll need to determine if it is priced right. This can be done by searching for comparable homes, which have sold in the past three months. A list can be obtained through a real estate agency or real estate investor.
* Determine how motivated the homeowner is to sell the property. If the home is entering or in foreclosure, the homeowner is likely to be anxious to sell. If the homeowner is current on his mortgage or has no mortgage, in a down market, they too will be motivated.
* Choose you top-dollar price. Remember the listing price is the "asking price". It is not set in stone. You can negotiate to get the property for less than listed.
* Inspect the home. Look for telltale signs of major repairs. This includes curling shingles, cracks near the foundation, pools with cracks, sinking ceilings and dead insects.
* Work with a real estate investor. This is not only ideal for those new to real estate investment, it is extensively beneficial for any investor. Not only will a knowledgeable real estate investor know the ins and outs of the market, pooling your money may give you a better return on investment.
With these tips in mind, you can find an investment property that will make money.
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