Never had the opportunity to buy but now you have some money that is not making money for you in the stock market and you may be thinking about a real estate investment. This blog entry will deal with some suggestions of what to look for and also what to watch out for when considering an investment property.
First you have to decide what your exit strategy will be. Is it to hold the property for long term, rent it now and wait for the market to turn? Is it to move some fast cash flow and move on to another? Depending on which is your desire or goal, you would buy very differently.
Let's talk about buying and holding for a few years. If this is your goal then consideration needs to be made on how the house will rent will play a large part in the decision process. If you don't know the area, this is where enough can't be said that you need to research research and then research some more. Call a realtor in the area or maybe 2 or 3 different ones. Ask them as many questions as possible to ascertain the best or most popular areas. Where are the schools? Where is the center of town? Where is the police station? Check the local crime logs to see if you can see a pattern. Go at night time to the area if you are close by and see what is happening at night in the neighborhood. These are some ways of determining very quickly the better areas to invest for the best return of your investment.
Buying to flip the property can be looked at slightly differently. It's a numbers game. If you can get the property cheap enough and can clean it up and resale it, everything has a selling price and if you are not greedy and don't take anything personally you can flip a property and make an easy few thousand dollars and then move on to the next. The end buyer gets a great deal and you made your money and move on to the next one.
In any case of these two opportunities we spoke about, you absolutely should be working with a Realtor. Their expertise, if it's a good one, will pay for itself over and over.
Tune in for the next post where more discussion on specifically what to look for in the investment opportunities we spoke about above.
In the meantime, feel free to contact us and we will be happy to sit down or talk on the phone and explain in more detail how you can safely invest in real estate that can bring you many years of monthly positive cash flow now and a later when you decide to sell, some retirement money or whatever your desire is to do with the money made on your investment.
The best part of it all is: You are in charge of your investment. You are the boss. Try that in the stock market when your money goes down the tube and you can only watch it happen!
Call us today at AAA Realty LLC at 239-368-8520.
