|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.|
Both novices and seasoned real estate investors are attracted to the quick money through foreclosed property investment. As foreclosed property investment is very different from the regular real estate investment, it is advisable to hold the hand of an experienced real estate wholesaler when you decide to invest in Philadelphia PA investment homes.
What if you decide to hire professional wholesalers, what kind of services can you expect? Are they brokers who help you in acquiring a property? Are they real estate agents helping sellers to dispose their property? Who are they, and what do they do?
Real estate wholesalers provide knowledge, opportunities and resources to real estate investors, while ensuring that they enjoy a hassle-free experience in the Philadelphia investment real estate market.
Your first step would be to acquire a promising property in tune with your budgetary constraints and investment goals. With their massive property listings, they can lead you to Philadelphia investment homes suitable to your needs. Foreclosed properties are sold “as-is”. So, if you are a novice, you may not be able to gauge the multitude of repair work and the expenditure needed to rehab the distressed property. Real estate investors can often estimate the repair costs incorrectly, and then end up in declining profits.
|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.|
During your hunt for the appropriate property, the knowledgeable and experienced agents of the wholesaler help you to assess the repair costs, multitude of work, after repair value; thus, giving you a clear view of what you can expect from the deal.
After your shortlist is ready, it's time to show the money. Often, foreclosed properties come with a “cash-on-sale” clause. Don't be disappointed if you do not have liquid cash ready. A host of financing options is available like hard money, owner financing and the like are available for foreclosed property investment. The knowledgeable real estate agent will lead you to an apt financer as per your needs and expectations. What's more, you are ready to purchase the property!
Once you have acquired the Philadelphia investment real estate, step 2 would be to undertake the rehab work. In case of foreclosed properties, the quality of repair works will determine the sale value to a great extent. Therefore, you cannot go wrong here. Also, there is a risk of your profits being eaten by your rehab charges. Again, the real estate wholesaler steps in. From it's time for sale. The real estate wholesaler is still by your side. They assist you in hunting for a prospective buyer or tenant, depending on your exit strategy and investment goal.
Real estate wholesalers' services extend beyond simply making your property deal. They act as your guide, advisor, friend and agent along your investment journey. For, they work with the primary objective of “client satisfaction” and an underlying ethic of “Client first”.
|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.|