The perfect real estate investment is one that has high returns and very low risks. To achieve this, you need to be able to make smart decisions. The following three things make for an excellent real estate investment to help you get started.
The first thing is to find something with a good return on investment. To invest in the illiquid asset that is real estate, you will have to take money out of your liquid assets. You need to make sure that the rate of return you get is similar to the one you were getting through liquid investments. Basically, you must find good cash flow properties, not money pits.
Next, you must make sure your investment isn’t too risky. There is no such thing as risk-free real estate, but some risks are too high to take. Try not to choose private real estate funds, fixer uppers, real estate development and tenant-in-common options. Invest in these options and it is unlikely that you will ever see a return. A much better idea is to title interesting properties to yourself. Naturally, this means you need to take the time to do research and analysis, and you must exert due diligence. Next, you need to find a property that doesn’t require a lot of management or time. Avoid short term rental properties like vacation homes or student accommodation, or properties in bad areas for instance. You should look for properties that people with good credit profiles will rent for extended periods. This does require a commitment on your side to treat your tenants with the respect they deserve. It is impossible to never have a problem with your property, but so long as you deal with issues quickly, this shouldn’t be anything to really worry about.
These are the things to look for in good real estate investments. You want a property that requires minimal maintenance and management. Unfortunately, it can be quite hard to find properties like this. You need to have the time available to actually find these properties. You must spend the time to analyze and research any options available to you. Generally speaking, when someone wants to invest in real estate, they just want to get started straight away. Even if you have been searching the market for a long time, you should never invest in a property that you are not sure about. Make a wrong decision in the world of real estate, and you stand to loose a great deal of money that you may never be able to recover.
There is lots to think about if you want to buy or sell a home. Yes, we can do most things online now, but it is still recommended to work with a real and good realtor. Hence, let’s take a look at a few of the things to be aware of when choosing your realtor.
Ask about to see if you know someone that can recommend a realtor. However, don’t let your decision weigh solely on their opinion. Spend some time properly researching as well. You need to make sure that your realtor is experienced in what you are interested in. If you want to purchase a condo, there is no point going to someone that specializes in luxury mansions. Next, make sure you speak first to potential realtors before you hire them. Ask anything that is relevant, such as how they will represent you, what they can do for your, what experience they have, how much they cost and so on. You also need to talk about your expectations. It is important that they understand your needs. The last thing you need to do is make sure that you actually like your realtor on a personal level. If not, you will find it hard to trust them. Lastly, try to find a realtor that has a lot of experience. Although you might want to help out someone who is just starting in the world of real estate, would you really trust them with the thousands and thousands of dollars involved in these transactions?
Don’t work with the realtor of the owners of the property you are planning to purchase. This is due to the fact that any information you give you realtor will be passed on to the seller by the realtor, as it is their legal obligation to do so. The same is true if you are looking at selling. You should be looking for a realtor that only represents your needs. Start by asking people you know whether they can refer you to a realtor. You can also contact the NAR (National Association of Realtors) in order to find a professional for you. If you work with a realtor registered with the NAR, you will know for sure that they are professional and ethical. Do make sure you speak to several before you decide which one to go with. When you speak to them, be clear on your needs so they can make suggestions. This will give you a general idea of just how familiar the agent is with prices and neighborhoods, for instance. If you want to sell your home, find out how the realtor has done in the past. What you must find out is whether they tend to sell below, on or above the asking price.
Usually, seller’s realtors will ask you sign an exclusive agreement with them. This is a common procedure but it does not mean you lose any rights. If, for instance, you feel that the representation you are receiving is not proper, you able to terminate the contract. The contract, essentially, just means that you can only work with a single realtor at the same time. If you want to buy a property, on the other hand, you don’t have to sign such a contract. However, there is a changing facing in the world and many now ask their buying clients to sign a contract as well. The final thing you must look into is how your realtor earns their living. Not all realtors are created equally. In most cases, you will find that a realtor is paid a commission on the final sale price of the property, but some work on flat fees. It is vital that you know which one of the two constructions your potential realtor uses before you decide to sign your contract with them.
Buying or selling a home requires a lot of forward thinking. We live in a digital age where almost everything is completed online, but do still choose to work with a realtor. Let’s take a look at some do’s and don’ts when it comes to choosing one.
Make sure you find out whether anyone can personally recommend a realtor. However, don’t let your decision weigh solely on their opinion. Hence, you need to do your research. Your realtor should also be experienced in your needs. If you are hoping to buy a penthouse, for instance, you shouldn’t go to a realtor that focuses in suburbia. Always take the time to actually speak in person to a realtor you may choose. Some questions to ask include how they represent, how they work, how much they cost, whether they have references and so on. You also need to talk about your expectations. You have to make sure that your needs are clear. Last but not least, make sure that your realtor is someone you like. The reality is that you will struggle to trust someone who you don’t like. The last thing is that you need to find someone that is very experienced. There is something to be said for working with new people and giving them a chance, but buying or selling homes are incredibly important financial decisions and you need someone that actually knows what they are doing.
The other very important thing to look into is reputation. Unfortunately, a lot of realtors have a very poor reputation. There are a number of tools at your disposal to find a good realtor, fortunately. Be sure to check the Better Business Bureau in terms of finding out how good the realtor is. You can also use social media to your advantage. It is very difficult to censor anything that appears on social media, meaning you can easily get your hands on honest reviews. Make sure you also speak to people you know and find out whether they have an opinion on the matter. If you do hear a complaint, however, make sure you find out whether that is a relevant complaint to you, and how the realtor reacted in response to the complaint.
With the above two tips, you should be able to find the realtor who best represents your needs. Whether you want to buy or sell, you should always work with a realtor. One of the main things they are aware of is when the best time to buy and sell is, and this could end up saving or making you thousands.