|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.|
Real estate investment has been enticing investors for years. Whatever the economic conditions; real estate investment is lucrative. Of course, the strategy might change with the market forces, but it promises attractive profits. However, this does not mean that investing in Atlanta investment property is free from risks. Similar to any other investment, even real estate investment suffers from its own setbacks and pitfalls. One smart strategy suggested by experts to ensure success while investing in Atlanta investment property is to determine the exit strategy before stepping in.
Two exit strategies are most prevalent with real estate investors. Some flip the property for an attractive profit, while others hold the property, rent it out and sell it when the market prices soar higher.
Benefits of the exit strategy
You need to ask yourself the characteristics that will make your exit strategy work. You need to buy the right property to be successful.
Property hunt: Your property hunt must ideally begin with the exit strategy in mind. For instance: If you intend to flip the property, you need to buy a property in a neighborhood with a demand for buying houses and do your math with the purchase price, rehab costs and sale price. Similarly, if your exit strategy is to rent, buy a property and rehab it in accordance with the tenants' preferences and needs.
|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.|
Like any other business: Real estate business may not essentially be your primary business line. However, whether it your primary business line or not, you need to look at it like any other business. And, businesses reach new heights with an action plan in place. A pre-determined exit strategy will help you design your action plan and strategies. A well-designed plan will ensure success.
Don't fall for the attractive bargains: In a bid to make attractive bargains and follow the herd, investors often fall for real estate available at $40,000 – $60,000. Great bargains are not always equivalent to profitable investments. Avoid falling for the bargains and buying more than what you need. With an exit strategy in place, you know exactly what you want to buy and where to invest.
Expert's advice real estate investors to tread carefully, think diligently about the price, location and other factors before buying a property.
- Avoid spending all the money in buying. Yes, real estate is promising, but be prepared for the worst. Keep a buffer for losses and unseen expenses.
- Be sure of the kind of property you want to invest in. Real estate ranges from single family homes to commercial properties or foreclosed and distressed properties. Determine the goal, strategy and action plan carefully.
- Research and patience is a must for success. Don't be caught up in the ideal that every investment is rosy, be aware of the thorns as well when buying.
- A healthy practice is to build healthy relations with other real estate professionals, investors, contractors and others within the industry. You can learn a lot from their experiences.
Ideally, you begin every task at the entry door. However, be sure where the exit door is before entering to avoid getting stuck inside.
|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.|