Investing Tips
Select a real estate agent. Look for an agent with a solid background in the area you intend to invest in. The agent you choose should provide you wth detailed Comparative Market Anaylsis (CMA) on properties you are considering.
Get prequalified with a good mortgage company. When investing the type of loan you choose could determine success or failure, so choose carefully. The biggest mistake young investors make is not giving the lender accurate information. The lender must have precise information to shape the loan to suite your investing needs.
Communicate. There are several different investment stratagies, through a series of questions your agent will help you deterime which stratagy will best suite your needs. Your agent will also help you decide which area and type of property you will be most successful with.
Do your homework. Research the area's sense of community, keeping your resale stratagy in mind. Consider access to interatates and main roads, as well as school districts, churchs, and proximaty to commercial area's and zoning for those area's. Estimate how many monthly mortage payments you will make, it may be none or it may include all payments for the life of the loan depending on how long you intend to keep the property. Also consider taxes, utilities, and most importantly appreciation and the market value of the properties you are considering.
Review the sales/purchase contract carefully. Review your negoiating stratagy with your agent before presenting your offer. Make sure you understand all of the language and fine print.
Arrange for a property inspection. Your agent can provide you with a list of qualified property inspectors. For larger commercial building it may be best to consider a licensed arcitech.
Insurance. Your property must be insured for the life of the loan. Shop for your insurance just as you shopped for the loan.
Review closing documents. Review all closing documents carefully.
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