The real estate market is one where a profitable investment is always to be found somewhere amidst the foreclosure lists or lying dormant on an agent's desk. This guide aims to give you the background necessary to allow you to find profitable real estate investment.
First, the key to profiting with real estate investments is to find a highly motivated and urgent seller. This is something that is quite easy to do in today's market as foreclosures are at record highs with a long ways to go in order to get back to "normal". The idea is to negotiate a lower price on a piece of property; requiring a motivated seller. Foreclosures are a prime target for investors as the seller usually is in a position sell their house quickly or desperately. If you are talking to an unmotivated seller on the telephone, it will soon be very clear that you are not going to get a discounted price on this property, which would not make it a very good real estate investment. If the seller, or the bank, is motivated then you may be able to negotiate a lucrative deal.
One counterintuitive aspect of real estate investment is that you normally make a profit when you buy real estate and not when you sell it. This means that, while there is often little you can do to increase the value of the property; sellers are human and are often willing to negotiate their price. Saving money while buying real estate is the key to selling homes for a profit, this is what makes a good real estate investment.
With that in mind, you need to develop a list of properties that you are considering investing your money in. You will need to view around ten pieces of property before you carefully choose which one will be the ideal real estate investment. One useful technique for sourcing profitable a real estate investment is to interview the agents; the people that profit on a daily basis. Interviewing an agent and finding out if they own any real estate investments could be productive; also very useful. Remember, most of them will be more than willing to sit down for an interview because you, hopefully, will use them to finally conduct the transaction.
Agents understand the market "inside out" and can be an excellent source of investment properties with low prices because others have not seen or understood the potential of them. After you create a good relationship with a local real estate agent, you will typically receive a phone call every time they notice a good property reach their desk. Remember, they receive a lot in return for this relationship because the more real estate that they sell the more commission that they earn. Therefore, they will be motivated to help you find the perfect investments.
Another very useful method for sourcing great real estate investment is the use of foreclosure lists. You can check out websites to find resources for finding foreclosures properties and to get possible deals emailed to you. Typically, you will have to pay a subscription fee to access this information but it is definitely worth the cost. Who knows, you may find the "mother lode" of all deals.
In order to profit from foreclosure lists easily and quickly, follow these steps:
First, buy the daily foreclosure list for your area and flip through the pages Select only the properties that has have been on the list for less than thirty days Highlight the ones that are within your budget Look particularly for ones located in nice surroundings or desirable neighborhoods and only select properties that are within fifty miles from where you live. Using the internet, access the local tax records and obtain the tax value of this particular piece of property
Once you have picked a few potential properties then ask your agent to take you for a viewing. If you are happy with what you see then you can contact an appraiser, make sure that the house is structurally sound. This step is necessary to ensure the value of your investment.
At this point, you will be in a position to make an offer and to attempt to "buy low" in order to "sell high".
Admittedly, finding a profitable piece of property is usually the result of a small amount of hard work. However, this article has put you at a great advantage regarding real estate investment. The rewards of finding valuable properties speak for themselves. Buying an under priced investment can mean profits of tens of thousands of dollars.
So, with all this new knowledge,
Happy House Hunting.
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