|
  |
|
|
How to Begin Real Estate Investing
Real estate investing can be done by a person looking to expand their savings by renting a home, to partners leasing office space in small malls, to an investment business buying and leasing large office buildings and parks to medium and/or large companies. Whatever the size of your real estate investment strategy, however, all real estate investors must complete a basic laundry list of things to do prior to buying a new property for the purpose of investing. This list will help verify that the property you want will meet the needs of your investment strategy. The following list gives tips on what to do before you invest in real estate. 1. Check your credit using one or more of the free services provided by Experian, Trans Union, and/or Equifax. These services will verify your credit is in good shape to take out a loan before the lender checks your credit. By checking it in advance, you could save yourself time, money, and even a little embarrassment of not having to scramble for money if your credit is found to be questionable by the lender. 2. Review your current collateral and monthly expenses to determine the amount of money you have available for the actual purchase of the investment property as well as the amount of money you have available to make monthly payments on a loan. This will enable you to see how much you can afford to spend on a new investment property as well as determine how much money you actually have to spend on a month-to-month basis for loan payments, property expenses, tax payments, and other incidentals. 3. Determine the type of real estate in which you want to invest. For example, you could invest in two bedroom or three bedroom homes. You may want to invest in duplexes or four-plexes. Or, maybe you want to invest in small office buildings that have four to ten offices you can lease. Be as specific as you can in determining the type of real estate investment that is right for you. 4. Analyze an area or areas of town in which you are interested in investing. Some of the information you will need to collect on each area analyzed and each real estate investment type analyzed includes: •The type of real estate that is predominant in that area,
•The average cost per square foot,
•The average leasing costs,
•The average insurance costs, and
•State and local taxes. 5. Compare the cost of each area visited to how much money you have to spend on a month-to-month basis. If you did research on several properties in one area, look at the average cost per square foot and then multiply it by the square footage of each particular property in which you are interested in that area. This should give you a general idea of the cost of the property. 6. If you analyzed multiple areas, create a spreadsheet comparing the information collected for the multiple areas. Determine which area is your first choice, second choice, third choice, etc. 7. Create a map of your target area or areas showing the properties you are most interested in purchasing and the properties you already own. Keep this map updated every time you make a purchase or a sale. 8. Do research on mortgage bankers and mortgage brokers in your area. The difference between the two is that mortgage bankers represent established, well-known lenders; whereas, mortgage brokers do not “represent” any lender. There is an established process followed by the mortgage bankers and the lenders they represent, so you can have a high confidence the loan being managed well. Mortgage brokers just send your loan application to all lenders in the market at any given time period. You may get a better interest rate going with a mortgage broker; however, you may not have as much confidence in how the loan is managed because the loan may be turned over to another lender one or more times.
|
|
 |
|
PLEASE VISIT THE CONTRIBUTOR'S WEBSITE
No reactions yet.
Please login or sign up to rate this intel.
Please login or sign up to add a comment.
The copyright for this content entitled "How to Begin Real Estate Investing" has been specified by the contributor as:
All Rights Reserved
This content may not be copied, distributed or adapted by anyone under any circumstances.
|
|
|
This intel was contributed by larryg
|
May, 2012
2008
January, February, March, April, May, June, July, August, September, October, November, December
2009
January, February, March, April, May, June, July, August, September, October, November, December
2010
January, February, March, April, May, June, July, August, September, October, November, December
2011
January, February, March, April, May, June, July, August, September, October, November, December
2012
January, February, March, April, May
|
|
Not a member yet?
Qondio is a powerful network for making it online. If you have a website to
promote, we can help.
Sign up and get in on the action.
|
|
Welcome to Qondio! Discover the awesome power this network can deliver by going to our About page. Or you could skip straight to the Sign Up form.
|
|
