10 Important Tips to Successful Real Estate Investing

Written by Madan "Raja" Ahluwalia

10 Important Tips to Successful Real Estate Investing

When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know:

1. Compare Property Values and Rents

Financial statistics only go so far;repparttar best measure of a property's market value is oftenrepparttar 136016 sale prices of nearby properties. The same holds true for area rents. A low price can often be justified by a reasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a need.

2. Be Careful - Tax Laws May Change

Don't base your tax investment on current tax laws. The tax code is constantly changing, and a good investment is a good investment regardless ofrepparttar 136017 tax code. The right property withrepparttar 136018 right financing is what you should look for as an investor.

3. Specialize In Something You Know

Start in a market segment you know. Whether you focus on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you'll benefit from experience by specializing in one aspect of investment real estate properties.

4. Know The Costs Going In!

Knowrepparttar 136019 financial statements inside out. What are operating expenses? What are loan payments? Vacancy costs? Taxes? What doesrepparttar 136020 cash flow statement look like? These are key issues that must be addressed before making a solid investment.

5. Know Where Your Tenants Are Coming From

Finding the Best Real Estate Professional

Written by Madan "Raja" Ahluwalia

Findingrepparttar Best Real Estate Professional

Findingrepparttar 136015 right real estate professional requires doing a little research and asking a few questions. You need to know everything aboutrepparttar 136016 selling process. What isrepparttar 136017 marketing strategy? What kind of advertising will be done? Isrepparttar 136018 REALTORŪ capable and willing to communicate effectively? Canrepparttar 136019 REALTORŪ effectively present and sellrepparttar 136020 less-noticeable assets ofrepparttar 136021 property?

Real estate professionals also need to be knowledgeable aboutrepparttar 136022 community. They need to have a feel forrepparttar 136023 history ofrepparttar 136024 area andrepparttar 136025 approximate price that people will be willing to pay. Also, real estate agents should know whatrepparttar 136026 competition is and how much it will affect your sale.

NEVER choose a REALTORŪ on price alone. Remember that a REALTORŪ cannot magically raiserepparttar 136027 selling price ofrepparttar 136028 house. Considerrepparttar 136029 buyer. The purchaser won't willingly pay too much; it's most likely that he or she will do research onrepparttar 136030 market and try to findrepparttar 136031 best product forrepparttar 136032 best price. The facts simply cannot be changed, no matter which REALTORŪ you select. In spite of these unchangeable factors,repparttar 136033 REALTORŪ you select must still be diligent and knowledgeable.

Cont'd on page 2 ==>
ImproveHomeLife.com © 2005
Terms of Use