What You Need to Do Before Buying an Investment Property

Written by Posted On Friday, 28 April 2017 11:38
What You Need to Do Before Buying an Investment Property Alliance Title & Escrow

Before you start looking for properties to buy, you will need to plan your strategy. This may be the most boring part of the process but it is the most important. Investing in real estate is incredibly profitable if you go about it correctly. You will need to decide if you plan to rent the property, flip it, lease it, etc. You can’t just buy the property then decide what you’re going to do with it. You need to choose which investment strategy you want to take and learn about the state laws regarding your investment plan. Also make sure that you know the laws according to the state that you are purchasing the property in. All of this research and planning takes time but it will save you time and money in the long-run. Due diligence is required of any kind of investment, especially real estate. There is no room for guesswork when it comes to flipping houses.

Once you figure out your investment strategy, your budget, state laws, etc., you’re ready to move onto the next step. It’s time to start house hunting. Finding the perfect property to invest in will take a lot of time and effort and you definitely don’t want to rush this part of the process. You want to make sure that you find the best property for your money and you can do that by checking comps in the area. Comps are similar homes in the same neighborhood which are on the market or have already been sold recently. This will show you how much homes are going for and how long they were on the market before they were sold. If there are a lot of properties in the area that have been on the market for months, that’s probably not a good place to buy.

Look and see if there were a lot of homes that were sold quickly in the area to find out if it is a good area to invest in. Check and see the average days on the market and any recent sales in the area to see if there is a high demand.

If you’re not willing to put in the effort, you may as well stop now. Flipping Houses isn’t an easy way to make money overnight. In order to make money (and you can make lots of money) you need to put in the effort. Do your research and learn everything you need to know about the property and the neighborhood. There is risk involved with any investment but your research and due diligence will help minimize risk.

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Yanni Raz

Yanni Raz is CEO of HML Investments and has been a hard money lender for more than 10 years. Raz was a real estate broker for five years before he partnered with a group of investors from California and began assisting real estate investors in financing commercial and residential projects. He writes about real estate financing for magazines, blogs and other online news outlets.

https://www.hmlinvestments.com/

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