Tuesday, February 12, 2013
What's the Best Real Estate to Invest in when the Market is Saturated?
You've probably heard by now that there is never a bad time to invest in real estate. There are just too many opportunities that fall beneath the umbrella of real estate investing. The thing is, not ALL real estate investments are a sound decision ALL the time.
For instance, when the housing market is saturated with a surplice of available supply and a dwindling amount of demand – in light of the fact that banks aren't borrower friendly in the current circumstances – it's safe to say that "flipping" real estate isn't likely to be a good choice in MOST housing markets. There are a few exceptions but those are rather advanced real estate marketing tactics.
So, what is the best real estate to invest in when the housing market looks so bleak?
Now is the perfect time to consider investing in long-term (buy and hold) rental properties. Real estate is the best investment – even today – for those who plan properly.
With so many people losing their homes, demand for quality rental properties is on the rise. The good news for those who have the money to invest is that the market is saturated with nice homes in decent neighborhoods that are going for rock-bottom prices.
Some of these homes are foreclosures. Some may even need repairs of some sort in order to be "renter worthy" but for the most part you can find decent houses in rentable condition for extremely reasonable prices in cities everywhere.
If you're not interested in the day to day grind of rental investing, you can even hire a property management company to handle the property and its rental for you. They do all the work leaving you to enjoy worry-free real estate investing.
Then, when the market picks up, you have many options available to you. You could choose to hold on to the property for the rental income it generates. You could sell it for a higher price than you purchased the home for. Or, you might want to consider offering a lease-option arrangement to your tenant if he or she is interested in home ownership. The higher property value will make that a much more agreeable proposition for some real estate investors.
When buying real estate for investment it's always a good idea to explore what's possible now with your investment as well as what might be possible in the future. Those who invest in real estate invest real dollars with the expectation of returns on that investment. When you pick the best real estate to invest in, for the time in which you're investing, those odds increase drastically.
Monday, February 11, 2013
Rental Real Estate Investment 101
Investing in real estate can be risky. With so many risks involved in real estate investing these days it's no wonder that more and more people are interested in learning more about the opportunities that exist with rental real estate investment. There are quite a few things you can do to minimize your risks when investing in rental real estate. These will help you get off to a good start.
Consult an Attorney
The one thing you need, more than anything else, is to protect yourself and your other assets. Before you even think about real estate rental investment properties. You need to speak to an attorney who deals specifically with real estate and rentals in the area where the investment property is located. In other words, if you live in Miami and are considering investing in real estate for rentals in Boca Raton you need to talk to a Boca Raton attorney who specializes in this type of investment.
Why?
Different municipalities have different rules governing property ownership, owner's rights, and owner's responsibilities. You need to know what yours are and what they will be before you take the plunge and make an investment you're ultimately going to be unhappy with.
Inspect the Property
One thing you need to remember is that as a property owner you're ultimately responsible for the condition of and the upkeep of the property. You're also liable for any damage that is caused by the property if it happens to be in a state of disrepair.
Make sure that you have a thorough inspection of the property made before you buy the rental property and that any needed repairs are accounted for in your offer and made before you bring tenants into the property.
Hire a Property Manager
If you do not want to be on-call 24-7 to handle possible problems that come up with the property then you need to make the investment in a property management service to handle your rental real estate investment.
When it comes to real estate investment, rental properties can be a real downer if you're trying to handle all the upkeep, rental transactions, repairs, and actual duties involved with renting the property. The more properties you invest in, the more time consuming this type of investment becomes.
If you want to make the most of your rental real estate investment opportunities then you need to have the experience of a property management service on your side. It will save you time. It will make you money. It's hard to argue with logic like that.
These are just a few of the secrets that can help you yield the highest possible profit from your real estate rental venture. Use it well and you'll be on your way to solid returns on your real estate investment.
Consult an Attorney
The one thing you need, more than anything else, is to protect yourself and your other assets. Before you even think about real estate rental investment properties. You need to speak to an attorney who deals specifically with real estate and rentals in the area where the investment property is located. In other words, if you live in Miami and are considering investing in real estate for rentals in Boca Raton you need to talk to a Boca Raton attorney who specializes in this type of investment.
Why?
Different municipalities have different rules governing property ownership, owner's rights, and owner's responsibilities. You need to know what yours are and what they will be before you take the plunge and make an investment you're ultimately going to be unhappy with.
Inspect the Property
One thing you need to remember is that as a property owner you're ultimately responsible for the condition of and the upkeep of the property. You're also liable for any damage that is caused by the property if it happens to be in a state of disrepair.
Make sure that you have a thorough inspection of the property made before you buy the rental property and that any needed repairs are accounted for in your offer and made before you bring tenants into the property.
Hire a Property Manager
If you do not want to be on-call 24-7 to handle possible problems that come up with the property then you need to make the investment in a property management service to handle your rental real estate investment.
When it comes to real estate investment, rental properties can be a real downer if you're trying to handle all the upkeep, rental transactions, repairs, and actual duties involved with renting the property. The more properties you invest in, the more time consuming this type of investment becomes.
If you want to make the most of your rental real estate investment opportunities then you need to have the experience of a property management service on your side. It will save you time. It will make you money. It's hard to argue with logic like that.
These are just a few of the secrets that can help you yield the highest possible profit from your real estate rental venture. Use it well and you'll be on your way to solid returns on your real estate investment.
Sunday, February 10, 2013
How to Get the Best Return on Real Estate Investment
When you are making a real estate investment for the first time, you are probably focusing all your time and attention on the potential profit that lies ahead. It's much more exciting to think about profit and payoffs than of the mundane details of the transaction. However, if you want a solid ROI for your investment endeavor then you're going to have to learn a little more about the small details.
Know the Neighborhood
Before you invest the one thing you need to know is what's going on in the neighborhood. Is it an area of growth? How hard has it been hit by the recent housing market woes? Is it a solid investment or is this a shaky proposition?
Other things you need to know depend on whether you're investing in commercial or residential real estate. If you're investing in residential property you want to know a few key things like these:
• Is the neighborhood kid-friendly?
• How are the schools in the neighborhood?
• Is there a high crime rate?
• What kind of people living in the neighborhood now (blue collar, young professionals, elderly, or families)?
• Is the house well-suited for the neighborhood?
• How many homes in the neighborhood are currently for sale or facing foreclosure?
• Is the area filled with rental properties or are most homes owner-occupied?
For commercial properties the questions you need to ask are a little different. These are the answers you need to know before you invest in commercial real estate.
• Is the building occupied?
• What percentage of the building is occupied?
• How long are the current leases expected to last?
• Are the current tenants happy with the lease situation?
• What is the business climate like in the area surrounding the property?
• Is this property located in an area of recent growth or it is showing signs of neglect or of a possible downturn?
Find a Partner
The more complicated the investment is the better off you'll be finding a partner to go in with you. Many people don't want to deal with single partners. For those people, it might be worth checking out a group real estate investment opportunity. This is especially wise for first time investors in real estate. It spreads the "buy in" price as well as the risks.
Simple questions like these can reveal a lot about the soundness of a real estate investment. No matter where your interests lie for investment, commercial real estate or residential there are many clues you can use to help you find your way. If you want to get the best return on real estate investment these two clues will help you get off to a great start.
Know the Neighborhood
Before you invest the one thing you need to know is what's going on in the neighborhood. Is it an area of growth? How hard has it been hit by the recent housing market woes? Is it a solid investment or is this a shaky proposition?
Other things you need to know depend on whether you're investing in commercial or residential real estate. If you're investing in residential property you want to know a few key things like these:
• Is the neighborhood kid-friendly?
• How are the schools in the neighborhood?
• Is there a high crime rate?
• What kind of people living in the neighborhood now (blue collar, young professionals, elderly, or families)?
• Is the house well-suited for the neighborhood?
• How many homes in the neighborhood are currently for sale or facing foreclosure?
• Is the area filled with rental properties or are most homes owner-occupied?
For commercial properties the questions you need to ask are a little different. These are the answers you need to know before you invest in commercial real estate.
• Is the building occupied?
• What percentage of the building is occupied?
• How long are the current leases expected to last?
• Are the current tenants happy with the lease situation?
• What is the business climate like in the area surrounding the property?
• Is this property located in an area of recent growth or it is showing signs of neglect or of a possible downturn?
Find a Partner
The more complicated the investment is the better off you'll be finding a partner to go in with you. Many people don't want to deal with single partners. For those people, it might be worth checking out a group real estate investment opportunity. This is especially wise for first time investors in real estate. It spreads the "buy in" price as well as the risks.
Simple questions like these can reveal a lot about the soundness of a real estate investment. No matter where your interests lie for investment, commercial real estate or residential there are many clues you can use to help you find your way. If you want to get the best return on real estate investment these two clues will help you get off to a great start.
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