How to Eliminate Risk in Real Estate Investment

Written by Neda Dabestani-Ryba

How to Eliminate Risk in Real Estate Investment

By Neda Dabestani-Ryba Prudential Carruthers REALTORS

Avoid 12 Common Mistakes Made by Novice Investors and Ensure High Rates of Return!

Real estate investment has provided many investors with positive cash flow, tax benefits and satisfaction of making an impact in others lives. Like any investment however, real estate has intricate nuances and market trends that when ignored can cause an investor tremendous heart ache.

Unbelievably many first time investors are willing to part with their hard earned cash without takingrepparttar time to study their investment. They rely on traditional trends and gut feelings. Before you risk your investment takerepparttar 150447 time to learn all you can about your market. By aligning yourself withrepparttar 150448 right professional you can avoid these 12 common mistakes and youíll ensure an excellent return on your investment.

1. Failure to Determine Your Time Need - Cash flow, capital appreciation, tax benefits, loss of management, equity paydown and pride of ownership are just some ofrepparttar 150449 things that need to be addressed before you make that investment. A service minded real estate professional can be a tremendous asset by takingrepparttar 150450 time to evaluate your needs and making sure youíve got all your bases covered.

2. Not Checking outrepparttar 150451 Seller or Sellers Agents Numbers - Claims of extremely high rates of return run rampant in real estate investment. Donít get caught up inrepparttar 150452 excitement - check everything: rents, payment history, taxes, expenses, deposits, future modifications... everything. Make sure you haverepparttar 150453 right agent...itís like having a good insurance policy against overlooking allrepparttar 150454 seemingly insignificant but very important details.

3. Forgetting You Are Buying a Business - Owning investment property carries with it a great potential for creating wealth and... some potentially difficult decisions. Evictions, re-investment intorepparttar 150455 property and time management all need careful consideration. Remember this is not a Ďhands offí business.

4. Avoid Negative Cash Flow - Property that eats cash every month can drain your working capital. This can create stress, frustration and become quite painful. Predicting constant appreciation is extremely difficult if not impossible forrepparttar 150456 unseasoned investor. A strain on your cash flow may cause you to sellrepparttar 150457 investment beforerepparttar 150458 benefits of ownership are ever realized.

5. Failure to do a Thorough Inspection - Look under every rock! Hire a professional inspector. Askrepparttar 150459 tenants about pest problems, structural damage or reoccurring problems. Donít overlook anything! A value driven real estate professional will help you findrepparttar 150460 right inspector and can help you avoid costly mistakes. When investing your hard earned money be sure and use sound business judgment!

Refinancing Mortgage Loan - Get The Lowest Interest Rate You Can When Refinancing

Written by Carrie Reeder

Refinancing can be a very simple process. You fill out a few applications, takerepparttar best offer and youíre done. You already own your home, so, depending on your broker,repparttar 150446 whole process can be fairly simple. Just be careful and make sure you do your homework before you accept a refinance loan offer. You will want to make sure that you get as many refinance mortgage loan offers as possible and talk to as many mortgage loan brokers as you can.

Mortgage loan brokers will usually insist that if they canít help you, no one can. That is simply not true. All mortgage loan brokers or loan officers have access to many different types of programs. A refinance loan program that is impossible for one broker to do, may be completely possible for another broker.

When refinancing, one ofrepparttar 150447 most important factors to pay close attention to isrepparttar 150448 interest rate. There are many ways to make sure that you getrepparttar 150449 lowest interest rate possible.

1. Do your own research online. Find out what current interest rates are.

2. Apply for your refinance loan with companies that will submit your application to multiple lenders, in order to get them to compete and give yourepparttar 150450 best rate. (For a list of our recommended mortgage companies that will get you multiple offers, click onrepparttar 150451 link below) Most of these companies will offer you up to 4 refinance mortgage loan offers. Most ofrepparttar 150452 companies do not even initially pull your credit, so there is no harm in applying to a few of them, to make sure you can get as many offers to work from as possible.

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