Steps To Get Started in Property Investment

1. Know Your Budget

Before taking a plunge into property investing, it is essential that you have an in-depth understanding of your cash flow. Plus, ask your bank for the pre-approval of your investment loan so that you know how much you can borrow prior you hunt your properties.

2. Don’t Skip Ongoing Costs

Ensure that you have sufficient budget for the insurance, rates, and general repairs. When you have bought your perfect investment property, know what you can do to stop costly maintenance problems like as replacement of old taps.

3. Purchase In the Growth Area

Pick an investment property in the areas where there is strong demand for the rental accommodation. So, purchasing an asset to transport, schools or universities will make it more alluring to the renters.

4. Be Practical About your Investment Goals

If you are hunting for the long-term property for fast capital growth, then it is easy to renovate properties and convert them for a quick profit. In slow economic times, it may take many years to get the same growth.

5. Create Sweat Equity

Paying tradesman to renovate your investment property is a costly affair. But if you are prepared to get into this, you can boost your profit margin and save money by doing the work on your own.

6. Hunt For the Liveable But avoid the Grand One

Note that the rental property only has to be neat, clean, and functional. Don’t get into buying a luxury asset as it has stylish decor and interior.

7. Don’t Get Emotional When Buying

When hunting for the house, you have to buy with your head not with your heart as some people might get caught up in the emotions easily. While home on the steep block might offer you mesmerizing views but it could be a nightmare for you to renovate due to the excavation or retaining costs. Also, make sure that you know the advantages and its risks.

8. Think Before Negative Turn-out

Your asset may get negatively geared if your repayments on the investment loan won’t entirely covered by the rent. While this can offer tax benefits, it can also result in the financial distress if you don’t have sufficient cash flow to cover the loan repayments. So, you need to consider your budget carefully before purchasing.

9. Inspect Your Building

Before signing any buyer contract, take your time to understand the building report well to avoid any high-cost repairs. Also, the termites are one of the leading issues that you need to look out.

The great Australian investor and professional real estate entrepreneur. He offers the best property investment podcast in the USA. He offers cost-effective tips and tricks to many newbie Australian and foreign investors to help them stand out from other and that too in short period. He will also help you out to refine your search to buy the best Investment Property for sale.

 

Tips To Get Different Investment In Property

The real estate market thrives with many opportunities that give chance to people to earn. The portfolio is diverse such that there are also many investments to try.

Rental properties are among the most common of the real estate property investments. This is as simple as buying out the property and letting someone (tenant) rent it for some period as determined by a contract. While the landlord (property owner) is responsible for maintenance and tax dues, the tenant has the obligation to pay for the monthly rent.

The downside to this investment is if the landlord will have to deal with irresponsible tenants. These people do not care at all and can end up damaging the property.

If you’re not keen with this property investment, you can try the real estate investment group. It will let you buy apartment blocks, condo units or even townhouses with a single company acting as the property manager. You keep ownership, usually documented in block and white. The investment company collects payments for you whole keeping some portion of what the tenants pay for the monthly rent. In some cases, there is a portion allotted to cover for units which are left vacant for short periods.

Another property investment is called flipping. In this method, you buy a property and flips it to the next owner. It’s like buy and sell. Usually, flipping a property takes three to four months. You just have to be keen on eyeing properties that can be sold without having to alter them at all.

However, there are new flippers who also shell out small amount of money to make the properties they buy more attractive. Few renovations and improvements are done before they look for the next buyer. This buyer may be someone who just looks for his new house or someone who is also a property flipper.

There are also property investors who take risks on financing people who have mortgage dues. Some do these in exchange for collaterals like cars. Some take the property titles and return them to the owner when the debt has been repayed.

Real estate is truly diverse. Many forms of investments are now available for those who do not only seek shelter but also seek shield from financial crisis.

If you are looking for real estate investments within your place, seeking the help of a real estate professional is a big leap towards this realization

Guide To Choose Real Estate Company

Selecting a commercial real estate company can be a challenging process. You want to hire someone who is knowledgeable, skilled, experienced and can match your goals and ideals. This is easier said than done. One company may offer you some of these features while others have the remaining characteristics you desire. There is no lack of the number of commercial real estate companies out there, which claim to possess peerless knowledge and skill. So, how do you go about selecting a commercial real estate company?

The secret lies in finding a real estate company that suits your needs and criteria. Yes, there are some overlaying concerns that also need to be considered like appropriate documentation. However, when you are looking for one of the best real estate companies for your needs, you need to do more than just scratch the surface. Here are some tips outlined below that can be useful in helping you during this process.

Let’s take a look at them:

Look at their experience

Commercial real estate is a blanket term and this business can be multi-faceted and highly nuanced. Therefore, you cannot just hire any real estate company for your needs. You have to start looking for one that suits your criteria. For instance, if you are interested in buying or selling properties in strip malls or shopping districts, you shouldn’t hire a company that deals in offices and residential homes. You want someone with a background in the kind of real estate you are focused on or else the company will be of little use because they will be out of their depth.

Assess their reputation

One of the best ways of spotting the best companies is by taking a look at their reputation. How can you do that? There are certifications, customer reviews as well as awards that are readily available due to the magic of the internet and the culture of open communication. If you find a commercial real estate company that seems appealing, you can do some research and discover if they do stack up. This step can be immensely helpful in allowing you to dodge a bullet.

Go over client’s opinions

The greatest problem with reviews is that they are mostly from satisfied customers. Unhappy customers either don’t post or their reviews are removed. Therefore, it is recommended that you ask the commercial company to provide you with a list of their past clients. This allows you to do some homework of your own and identify any weaknesses or problems that a previous client encountered.

Meet the representative

Last, but very important; don’t hire a company over the internet. Always meet their representative in person and see if they understand your needs. Open communication is vital in this business and if you are not comfortable with them, there is no point in starting a relationship.

Use these pointers to pick out one of the companies for your realty requirements.

 

First Investment Deal Tips

Because I have been investing for a long time, many new investors assume I’ve always known how to buy and sell investment real estate. Absolutely not true. No one is less experienced than I was starting out, but I had an absolute goal and I was willing to work hard to achieve it.

Let me tell you about my very first deal:

Jim and I knew we had to let people know that we wanted to buy houses if we were ever going to find deals to purchase. So, we began a little bit of very inexpensive marketing to get the phone to ring – walked neighborhoods putting out flyers, had magnetic signs on our car doors, put an ad in the local Nickel Paper (a three line ad was only $265 for a year). I had questionnaires printed out and stacked by the phone so, if a seller did call, I’d remember which questions to ask.

Like most new investors, I was terrified. Because I didn’t know what I was doing, I really didn’t want sellers to say “yes” to my offers, so I always made very low offers. Investor ignorance is not always a bad thing.

Almost the very first call was a woman calling from out of state. Back at that time, our phone had caller ID and it said the call was coming from “US Gov’t. Baltimore, MD”. I was convinced I was being arrested for doing something illegal, but quickly rationalized with myself that I couldn’t have done anything seriously wrong by that point, so I answered the phone.

The woman’s voice said, “do you buy houses?” What? The government already knew I was buying houses?!

As it turned out, her son lived near us and had taken down our phone number from the magnets on my car doors while I was parked at our local grocery store. The condo she was selling was actually in our neighborhood, and she was calling all the way from Baltimore, MD! This was so weird.

Anyway, it was vacant and had been on the market with a real estate agent for a year. I asked for the property details and promised to call her back. After doing my due diligence, I called and offered 65 cents on the dollar. She said, “Honey, I’ve owned this condo for six years and I still owe more on it than that!” I told her that I totally understood, that I was not going to be her best offer but that I was one solution, and she was welcome to call back anytime if she had more questions during her selling process.

I was so relieved that she didn’t take my offer. That night, she called back…

She asked, “if we did the deal, how it would take place?” I explained it to her, told her we would close with our attorney, and that she would have to write a check for the difference between what I was offering and what she still owed. She thanked me and hung up.

The next day, she called back and accepted my offer.

I had never even seen the inside of the property and was scared to death. Later that day I met her son at the property to check it out. It was immaculate – all new carpets and paint, all appliances including washer and dryer, a 2 story living area with a 2 story stone fireplace, an upstairs office area that overlooked the living area below. It was amazing. Because it was my very first deal and the seller actually paid to have me take it off her hands, I took this as a sign that I was heading down the right investment path!

Morals of this story?

  • Don’t think you need to know everything before you start investing. You really learn what you need to know while you’re investing.
  • Don’t think for the seller. Many assume that, if the seller owes too much, they won’t accept your low offer. Not true! Many sellers pay to sell. If their need to sell is great enough, they write a check at closing.
  • Don’t let fear stop you. No one knows what they’re doing at first, in any job, but surround yourself with people who do know the business so you always have somewhere to turn for answers.
  • Always be a resource for the seller. Most sellers need help. Offer it to them. You are forming relationships that will lead to great referrals. Be willing to help, even if you aren’t the one they sell to.

Do you have a story you’d like to share here? We’d love to hear it!