Real Estate Investing - Why and How
In the world of Globalization, everybody wants to make investments for varieties of reasons like to secure his future, for his family or may be for more success and wealth. Now the investments options available are stocks, bonds, gold, bank certificates and deposits offering easy and good returns.
These options are quite simple to make; just visit them, give your funds and you're sorted out; however Investments in Real estate are little bit complicated to understand. But one thing for sure, is considerably better returns on investing in Real Estate comparatively other options available.
Options available in Real Estate Markets are following:-
Commercial Industrial Land and Properties
Hotels & Resorts
Duplexes and fourplexes
Single family homes
If you are a beginner in Real Estate investment market, the best and easy option to start off is solo family home. They are easily available and you can purchase them with your little money.
Before you start, make yourself full of energy and motivation to acquire knowledge and understanding. Your starting kit needs to have a car for transportation, technical devices like a phone and computer, stationary like pens, paper and maps, a tool to decide property values, and financial resources.
Also you need to have a good team of experts including a real estate advisor, an attorney, accountant, insurance people, investment consultants, bankers, brokers, and maintenance people like cleaners and cutters.
Let's start discussing how to make investment:
1. Choose an area-firstly choose some areas with zip codes and mark them on map. These are the areas you believe are with hot properties.
2. set your preferences: What are your personal likings and preferences? You are looking at what kind of property, how many bedrooms you need, number of bathrooms and size of parking areas. The things which you don't want in your property. Also consider the overall size and price of the property.
3. Now start with planning and strategy. Try to locate those properties which are available for sale. Take help of classifieds in newspapers or property web portals, near to your neighborhood or vacant houses. Also try for property owned by institutions like banks, housing developing boards, and strongly recommended if you can take part in property auctions.
4. Implement your planning and strategies now. You have a brief idea of some hopeful properties. Make a habit of daily contacts with real estate agents, bankers, auctioneers. The more number of contacts made each day will increase the probability to achieve your goal. Try to finds those owners who have properties with highest possibilities.
5. This is time for some personal meetings and visits. Set an appointment with prospective seller and visit the properties. Initially you need to visit number of houses and the more visits will bring in the more possibilities and properties of your preferences. Experts suggest minimum fifteen visits for one home to be purchased.
6. Before your make the visit, make sure of ascertaining the existing value of the property from local real estate agents. Try to do some research to check the value of property after repairing. And during your visit list out all the changes and repairs needed.
7. Decide the worth of your property. With help of tax values, MLS sheets and results of Turbo-Bidder results you can decide and prepare an offer. Be assured of the amount you offer as it should make some profit while selling or renting the property. In offer, be particular of the terms and conditions and present it with payment options like all cash, cash and credit, and all credit.
8. Prepare contracts with help of your legal advisors and present it to your seller. If you are part of auction, then place your bids. Negotiation is crux of every good business deal, so do it at your best and secure the deal.
9. After offer and contract, be ready to close the deal. Gather your financial resources and collect enough money to make down payment and closing expenses.
10. Before closing the Deal, make sure that all legal formalities are completed, papers are duly signed and ownership is transferred. Provide location details to your maintenance team to fix up the place before you start marketing property among the tenants to rent it or among prospective buyers to sale it.
MG / Negocios e Inversiones