Real Estate Investment

Venturing into a real estate investment can be rewarding once you develop an over-all plan. When investing in stocks, bonds or bank certificates you place your money in the hands of another and hope they make good choices. While a bit more complicated, real estate investing offers the ability for you to build wealth through your own knowledge and efforts, often with a substantially higher return. Below are guidelines that help to make an investment successful.

Choose a location
Determine the area and mark it on a map. Learn the zip codes for the area. Conduct research on the area chosen.

Determine the scope of your investment
Define the type of properties you in which you want to invest. Choose what size, how many bedrooms, amenities such as pools, decks or spas, price and age range and what extras if any you want the property to include.

Locate viable properties
One method is to look for empty houses, newspaper advertisements, homes in foreclosure, or homes listed as for sale by owner. Contact a bank to view homes that they own. Speak to the Veteran's Administration or the Housing and Urban 5 Development for properties that they have available. You can also attend commercial or public auctions to find a property.

Keep in touch
Real estate investing strategies require daily contact with other Realtors, bankers, auctioneers, property wholesalers and private owners. Contact potential sellers daily. Choose a specific number of sellers to contact daily by email, phone call or personal visit. Using this simple step will make getting started real estate easy.

Ask questions
Through this process motivated sellers are identified. Investors who wish to purchase one home a month view approximately fifteen properties a week. The successful investor understands the importance of exposure.

Research a property prior to viewing
While viewing the property make notes regarding repairs and or improvements. This will allow you to compare the properties current value to the value after improvements or repairs.

Making an offer that is fair will require facts
Tax values, comparison property values, and terms should be included. Using software like TurboBidder2 can assist in developing an offer. It is important to consider profit margins when making an offer. Offers to individual homeowners should include three bids, all cash, all terms and a mix of cash and terms.

Negotiate to achieve the best terms possible
Place bids for auctioned properties that are reasonable. Once the terms of an offer are accepted get a signed contract. Doing so will ensure that the transaction is complete.

Financing
Closing a real estate transaction after a contract is signed will require that you have the finances and money needed, and that all the required documents are ready for signatures.

Review
Read all of these documents before the day of closing and make any necessary changes before the day of closing.

Finalizing
Read all closing documents again to ensure that they are correct. Once the documents have been signed the properties address can be given to your contractor, landscaper or designer for an upgrade.