How to Find a Good Real Estate Investment Property
Posted on October 6, 2009 in the Property Fortunes category
There are many ways in which you can find a great property for your real estate investment. The problem lies in the fact that many would be investors aren’t exactly certain what specific types of investment they wish to make. Unfortunately, the type of investing will greatly affect the type of property that will best suit your real estate needs. This article focuses on finding a great property for the purpose of flipping or rehabbing a property.
Seek Bargains
This is absolutely a necessary step when it comes to finding properties with excellent potential as flipped properties. Bargains are often sold at bargain prices for a reason. The good news is that many of these reasons are purely cosmetic and quite simple to fix. Finding a realtor that is willing to work with you for lower prices, bargain properties offer an excellent place to begin. If he or she is a knowledgeable professional you should have access to properties that would have been unavailable to you had you continued the search without the assistance of a professional.
Another great place to find bargains of this nature is to search through foreclosures, auctions, and homes that are preparing to enter into foreclosure. While not always the case, there are many in these situations that are willing to be a bit more flexible with the price. Never offer full asking price first. Start low and negotiate up. This may lose some properties but in the end it will be a much more profitable venture if you can get the properties you want for a smaller investment.
Know the Neighborhood
Before placing a bid on a potential property for flipping you need to learn as much about the neighborhood as possible. You do not want to place a family home in the middle of a retirement neighborhood, nor do you want to place a potential bachelor pad in that type of area. You also want to avoid areas that are entering a state of decline, as the rehab efforts are unlikely to achieve the profits you are hoping to receive. Instead, look for bargains in areas that are approaching some sort of renewal or have very low crime and excellent growth potential.
If you are rehabbing a home that is meant to appeal to families make sure the neighborhood is safe, has a relatively low crime rate, access to good schools, and entertainment opportunities that may appeal to families. These things will affect the price you are likely to be able to expect once the rehab efforts have been completed as well as the type of renovations you will need to perform on the property. Buying a property in an area that you know nothing about is like buying a property without an inspection-which brings me to my next point.
Get a Thorough Inspection
This is one of the most important steps in the process of selecting the perfect property for your real estate investment needs. A qualified inspection will prepare you for any problems that may arise during the course of your work on the home. These are things that will affect the amount of money you should offer on the home, the amount of money you will need to invest in repairs, and the amount of money you can expect once all is said and done.
Failing to have a complete and proper inspection can lead to disaster when the renovations begin costing extra money and time as efforts are undone in order to get to the root of the problems as you go. There are very few things that can save you the time or money that having a decent inspection can manage to save. Inspections can also make you aware of any structural problems, code problems, and other problems that may mean the difference between this property offering a possible profit or a probable loss. It is much better to be armed with this knowledge before ever making an offer on the property in question.
Realize That You do not Need to Buy the First Property You See
This is an important thing to remember. If the first property doesn’t speak to you, move on until you find one that does. This process is part science and part inspiration. If you are uninspired by a property it is unlikely that this property will suddenly take on a life of its own in order to suit your real estate investment needs. Keep searching until you find the property that meets all of your needs in order to find the perfect property for your first or your fiftieth flip.
Technorati Tags : property properties investment money
Related Posts:
- No related posts
Comments
18 Responses to “How to Find a Good Real Estate Investment Property”
Leave a Comment
And it is better to consult to a real estate professionals in choosing for the property to invest with. As they can help you in finding what you want that will fits your requirements. And at the same time guiding you with in the buying process.
if you look around you will find many other methods
You have done marvelous job by sharing such a nice stuff here. People are very exciting to invest their money in real estate. But they don’t have knowledge how to make good investment. This post will help as guide for people who want to make investments in real estate.
Thanks for the advice, actually getting a through inspection is one of the most important steps before investing in a real estate property. And not all the people do this in a correct way.
An excellent blog post! The internet would be a better place if people could write as well as you. Keep it up.
I really agree with the part about INSPECTION… being in the restoration business we get alot of calls about mold in a newly purchased home. If you are purchasing an exisiting home, be sure to get tested for mold as certain types can cause major structural problems and even health issues.
Internet is a great source of information, so go there and search property of your choice to invest!
thank you so much for this data. This is a very very good post.
Seek Bargains may be the best step to find a good real estate investment property.If you will search then there are also so many steps to find it.Thanks for sharing.
Each of the thing out of these four is really important while selecting a property which can be bought for making high return!
Get a thorough inspection this is one of the most important steps in the process of selecting the perfect property for your real estate investment needs. A qualified inspection will prepare you for any problems that may arise during the course of your work on the home. These are things that will affect the amount of money you should offer on the home, the amount of money you will need to invest in repairs, and the amount of money you can expect once all is said and done.
i think Know the Neighborhood is the best way, i would suggest for anyone to do research not only online but also walk around the neighborhood and even talk to the people, you will be surprised how much data and info you can get with this simple method that most never even think of doing…
Due to current economic condition real estate business is really down here. Thanks for this great post.
You may also want to look at investing in REITs. You get professional management, a diversified portfolio and you can focus by property type/geography. One disadvantage is that they are more correlated to stocks than a direct property investment. You can also invest in real estate mortgages with a mortgage reit.
Find an agent that understands flips because he or she has actually completed one profitably, and you’re on your way to making money with flips
Buy a residential property near a potential commercial area or just buy a property in a commercial area. Prices of commercial properties increase a lot with in some months.
You can find foreclosures on the county web sites. Look for “notice of trustee sale” or trustee sale. I live in Arizona and our county web site is terrific.
Always get a home inspection and make sure to check the floor joints if you are on a crawlspace. If you are on a slab, ensure the inspector checks for cracks and moisture coming up from the slab.