Special offer

Secrets of Becoming A Good Real Estate Investor

By
Real Estate Agent

When it comes to real estate investing, everyone has some aspirations and goals. But there are some guidelines that have to be followed by any real estate investor; now real estate is a great investment that gives good returns, but you should be wise and well planned. To begin with compare the property rents and values. Only financial statistics will move so far; the best way to find a property's market value is finding out the sale prices of properties nearby which are the same for area rents. Often a low price can be justified with a reasonable home rent; those renters who can pay high rents can afford to buy instead, hence reasonably priced rents are considered to be a need.

Have a look at the local newspapers; do those ads promote anything like first month rent as free or something else to attract tenants? If you feel there are lots of rentals available, you may have to keep away from market for a period. Also try to remain local if you are a beginner to real estate investing. The last thing what you can do is expend your income on travels out of state in order to address the issues on your property. Once you have acquired many properties, investing out of your locality will be possible with the help of an expert like a property manager.

You need to be careful about the tax laws which might change and see that you don't base your tax investments on the current tax laws. The code of tax is changing constantly and a good investment is always a good investment no matter of what the tax code is. The right real estate property made from right financing is what you should seek for as an investor. Get yourself specialized in something you are talented. Begin in the market segment you know, whether your focus is on foreclosures, fixer uppers, starter houses, low down payment properties, small apartment buildings or condominiums, you will profit from the experience by specializing in one aspect of real estate investment properties.

You should also know where the costs are going in! Learn the financial statements inside out. What are the operating expenses? Vacancy costs? What are loan payments and taxes? How does the cash flow statement look like? These are some of the key issues which must be addressed before you make a solid investment. Finally try to know where your tenants are coming from. In case recently if there was an increase in rents, your tenants might consider a move. If the tenants have a short-term lease, they might be living there simply to pull in unsuspecting buyers. It is also vital to gather the tenants' security deposits during the closing.

Comments (0)