|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.|
Foreclosure investing is a hot favorite with real estate investors in America. Unfortunately the unemployment, dwindling prices of stocks and bonds and faltering businesses post 2008 recession, the American neighborhood witnessed a sharp increase in the number of foreclosures. Statistics reveal that approximately 1.4 million homes have been foreclosed in America.
A property enters foreclosure when the home owner fails to pay his mortgage installment or association dues. The property is then repossessed by the lender. As lenders are keener on recovering their loan than possessing the property, they sell the properties at great bargains. Investors are therefore investing actively in Atlanta Investment Homes for attractive profits.
The biggest catch faced by investors keen on investing in Atlanta Investment Homes is financing. Whether they intend to buy pre-foreclosure or REO properties, it is essential for the investors to have at least $10,000 – $15,000 ready finance. Depending on the property the investor is interested in, he will need a start up capital to pay the loan reinstatement costs, rehab costs, carrying costs and so forth. Arranging this sort of finance may be challenging. You cannot expect the bank selling the foreclosed home to provide you with a loan.
|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.|
Does this mean that investors who are not cash-rich cannot invest in Atlanta Investment Homes?
Of course, they can. Others sources of financing are also available for foreclosure investing.
- Conventional mortgage financing: It may be difficult to get mortgage financing for foreclosed properties when compared to regular real estate. But, some lenders do provide mortgage loans.
- Private money lenders: These are private money lenders, who do not belong to any financial institution. The primary benefit of hard money loans or bridge loans is that they are usually processed quickly, within a span of 48 hours or maximum a week. In foreclosure investing, timely availability of finance can make or break a deal. Thus, this the most popular form of finance for real estate investors, especially when they are unable to acquire a loan from bankers or conventional money lenders.
- Private fund created by family and friends: If you are unable to finance the investment by yourself, you can create a private loan fund with your friends and family contributing to the same. Whether they will be silent investors or participate in the rehab and share profits depends on the agreement entered into.
- Line of credit: Financing can also be done through the regular credit line such as your credit card or a small business loan.
Yet another alternative is to combine one or more of these financing options and finance the real estate investment. For instance: Of the total investment amount, you can borrow 90% of the amount from a lender and give the remaining 10% from your credit card.
If you are not a cash-rich investor, don't be disappointed. You can still go ahead with any of these financing options and fulfill your real estate investment ambitions and earn attractive profits.
|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.|