|Buying Property Tips#1: Choose the Right Location|
|Before you choose a location, it is of utmost importance that you consider the development prospect of the area. Other factors to consider here is crime record of the area, availability and nearness of public facilities and utilities.|
|Buying Property Tips#2: Study the Local Market Dynamics|
|It is important to get well familiar with the local realty market. Learn the variation in property prices by street. Don’t shy away from asking a few realty investment agents questions to get better insight on the matter.|
Foreclosed and distressed properties are attracting many Americans who are seeking to find a way to supliment their household income due to employments cutbacks and lost jobs. . Why not, when flipping through foreclosed or destressed property listings and finding quotes that are 30 – 40% lower than a similar occupied property. Buy/fix/ sell or buy/fix/rent is indeed a lucrative option for making quick money by investing saved income in Philadelphia Wholesale Real Estate.
If you follow the number game, it sounds really attractive. However, if you do not tread carefully, you may fall into one of the dangerous pitfalls. Just be cautious of a few things before moving forward.
You can buy a distressed property through a short sale from the owner, at a pre-foreclosure auction or from the lender after foreclosure. While a short sale calls for lengthy negotiations with the owner, auctions demand an immediate cash payment. Furthermore, there is no chance inspecting the property during the auction, the properties are sold ” as is”. It is also possible that the owner has not yet vacated the residence. So, the safest way to buy a foreclosed property is from a banker or lender, who holds the property post foreclosure.
|Buying Property Tips#3: Choose the Right Property|
|Getting the right property right away is quite unlikely. First, you need to be clear on why you want to buy an investment property. After that, you will be able to make right decision based on factors like remoteness or accessibility of the property.|
|Buying Property Tips#4: Do the Math Properly|
|Get a precise idea on the value of assets you have available. If you are investing in rental property, make sure you can easily cover the mortgage payment through rents. Additionally, get a clear idea on the appraisal value of the property beforehand.|
|Buying Property Tips#5: Consider Additional Expenses|
|When purchasing an investment property, it is not only the selling price that investors need to consider. There are various additional expenses such as property tax, home owner’s insurance, repair & maintenance that must be considered.|
The benefits are multiple. You can inspect the REO (real estate owned) property before purchase. You will also be gauranteed a clear title of the property. Additionally, banks and lenders are open to negotiations, as their primary objective is to retain their loan. They have no emotional chords attached. You can thus get a good deal on the REO.
However, the best way to make the “best deal” is through a Philadelphia Real Estate wholesaler. Real estate wholesalers provide the knowledge, resources and opportunities to real estate investors. Even bankers and lenders hire real estate agents to sell their REO properties. They will surely lead you to the most suitable Philadelphia wholesale real estate from their massive listings.
Foreclosed properties are in such demand that they are sold on first come first serve basis. If you do not want to lose a promising property, keep your finance options ready. Whatever the investment amount may be; liquidity is a must.
Investing in real estate properties is indeed promising. But, sometimes, the grass may not be as green as it seems. You may dream of attractive returns; while the property may not reap the same after the rehab is done. It is better to conduct a market research of the area in which your prospective property is located. Once you determine the market price of the properties there, you will get a clear picture of the profit margin you can expect. Thus, avoiding unexpected surprises!
Although real estate investment is a lucrative field, it is fraught with risks. To avoid these mistakes along your journey, tread ahead carefully. And, yes, if you hire the services of a Philadelphia Real Estate wholesaler, they will assist you in the same. With their unsurpassed knowledge, they will be able to see through the loopholes. So, to avoid falling on your face, hire the services of a real estate wholesaler.
|Buying Property Tips#6: Inspect the Property|
|To ensure that you are getting everything you are paying for, a thorough inspection of the property is essential. Besides ensuring that you are not overpaying, a rigorous property inspection also gives you a good estimation on what the additional expenses might be.|
|Buying Property Tips#7: Pick the Right Financing Option|
|While interests on investment property loans are tax free, some borrowing costs aren’t immediately tax deductible. Knowing that, and structuring your financing in accordance is crucial. Don’t hesitate to ask for help from a financial advisor.|
|Buying Property Tips#8: Invest through Equity|
|One of the best ways to purchase an investment property is to leverage the equity of another property (including your primary home). This is a preferable way among regular investors, especially due to added tax deduction advantages.|