If you’re wondering if it is a good time to invest in real estate, you need to realize that while things have looked better than they do now, this leads to low-interest rates. These low-interest rates are helping investors attract buyers. If someone is looking to buy a property, why not invest in property and have them buying from you instead of someone else?
With tightened credit markets, getting a loan for an investment property can be tough, but by being prepared and a little creative, you can usually find a way to finance your investment property. Of course, a lot of that depends on whether or not it is a good, solid investment property.
Getting a good deal for a house and selling it for more important, but is not really all you should think about before you purchase a property. You should look at ways to get even more than the property is currently worth. If you’ve found a trusted agent they will let you know how much the house is worth “as is.” That means in the state you currently bought it. They will also know how much it would be worth if you are willing to invest in making a few improvements to the property.
Real estate investments do not always go the way you plan them to go. It is a good idea to have several exit strategies prepared so you can leave the investment with minimal damage. Here are a few exit strategies you should think about:
- Selling—If the property is a rental property, selling it outright is an obvious exit plan. If you’ve tried to sell and haven’t been able to at the price you want, calculate the amount you need to break even. Make sure you include everything. Reduce the selling price to the amount you need to break even. This way you might not make money, but you won’t lose money either.
Once you find the property you want to buy it is important to make an offer quickly. If you check listings daily, you can make an offer the first day or at least in the first week and if the seller is one who is desperate to sell, you can get usually get a really good deal.You can’t just jump in with an offer off the top of your head. Here are a few things you need to consider when making the offer:
If you’ve purchased a great rental property and insured it, you’re ready to begin renting the property. That can be a tricky thing sometimes and includes a lot of steps. Hiring a property management company, especially if it will have a lot of renters is a good idea. If you decide to manage the property yourself, however, here are some things to keep in mind:
- Thoroughly check all references and select your tenants wisely—Check everyone who applies and get rid of those you feel may damage the property. Look at credit reports to be sure a tenant can afford the amount of rent you are charging. Check to see if they’ve ever been evicted. If they have, they might not be someone you’ll want to take a risk on.