Take That Important Step Carefully

Buy sell Property & Real Estate Investment Guide

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.

The reports read that destressed property investors flipped close to 100,000 homes in the first half of 2012, and made an average of $30,000 per house. The figures are indeed, luring!

With the increasing availability of foreclosed and distressed properties, lots of Americans cath the bug to invest in foreclosed homes and earn a strong cash flow from the buy/fix/sell or buy/fix/rent strategy.

However, investing in Dallas Investment homes is not as easy as the press or the news outlets report. So, if you want to benefit from Dallas investment real estate, you need to take note of a few points.

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.
  • Is the property in demand: Before investing in Dallas Investment homes, checkto see if the property appeals to the buyers in the market? Sometimes experienced buyers look beyond the repairs and find a faulty wardrobe or a broken pipeline. It is important to see if the property is buyer-friendly.
  • What is the profit margin: The investment cost in foreclosed property investment includes the repair and rehab charges too. To avoid a decline in your expected profits, it is important to get a clear estimate of the repairs cost. Often, novices see the basic repairs but fail to focus on the fundamental structural repairs like the roof, dilapidated walls and the like.
  • Did you see the neighbourhood: The profit in foreclosed property investment is the difference between the after repair value and the investment cost plus repair costs. It is important to study the underlying prices of similar properties in the neighbourhood. While comparing, remember to compare an orange with an orange, not with a banana.
  • Remember that you are remodeling a property for sale: The ultimate objective of your investment is to sell. So, the property must be designed in tandem with the buyer's needs, not yours. See that you have high-quality cabinets, wall-mounted TV and other must have bucket list items that appeal to the buyer. Installing buyer friendly features will help to sell the property quickly.
  • Did you do your math right: Correct estimates of after repair value, repair costs and the like are essential to avoid a setback in the profits at the time of sale! Experts in this trade suggest that while calculating your costs, you must keep a 10% buffer on the costs for attorney fees, commission etc.
  • Listing the property: Rushing through the repairs may lead you to distress. Some investors, in their zeal for quick money list the property for sale before the property repairs and updates are completed. However, you need to remember that if the incomplete property does not appeal to the buyer, your property may end up being vacant with no takers. List the property only when it is appealing to the eyes of savvy buyers.
  • Check buyer credibility: You may fall into a situation where the buyer is floored by the property, but unable to pay the price for the property. List your property with a real estate agent, and if it can be arranged, ask for pre qualified buyers only when showing the house.

Lastly, remember to hire experts to do the task. Real Estate wholesalers have a proven track record and unsurpassed knowledge in this trade. They can guide you at every step to enjoy a hassle-free Dallas investment real estate!

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.
Updated: March 21, 2018 — 9:19 am
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