Prepare to spend. Land does not come cheap. Prime property can run up to hundreds of thousands of dollars, and competition can get very stiff. You need to make your bid competitive, but make sure that you don’t short-sell yourself in the process. Negotiate a very competitive price that you and the seller are happy with.
Motivated sellers are what you want to find. Someone with a need to sell not just a desire. We’re not talking about someone who is desperate to take advantage of here but a flexible seller who is willing to listen and negotiate with you. look for the sale signs or newspaper adds with things like “owner take back” or ” low down”, so you know these people are willing to do some creative financing with you. Also “no qualifying” means the financing is assumable and you won’t have to qualify for the existing mortgage. “Owner take back” means the owner will take back a part of the down payment as an extra mortgage instead of cash. FHA mortgages may be assumable and the cost is only a small fee with no additional points added.
Investing in a real estate property can be a risky and costly event. Hmm, if you are not prepared before, you will make losses. Not just losses but, but you will become a pauper. Remember, as I said in my earlier statements, Real estate market is speculative. You never know, where your investments make you land. Just play the right way. The real estate strategies given in the book can show you the right path and you will be riding up and safe.
Some of the things that you can do to begin preparing yourself is to join a real estate invesment organization or group. This is a great place to get support and resources. You will meet other people who are doing the same as you, and you can meet people who have been doing this for a long time. This is a great opportunity to really get to know the business better. It is important that we mix and mingle with people who know and understand the business. So, let’s get to work!
With curb appeal remodeling, you are required to think like a real estate investor. Usually, this type of remodeling applies on flipping property investment because when the investor buys the property for a purpose to get high profit, they improve it through curb appeal remodeling. With low cost spent, high return on investment can be got back.
Spend a little time on inexpensive repairs. Fix the leaky sprinkler head, and replace the dripping bathroom faucet. Take care of these unsightly issues before showing the house. The more expensive repairs can wait, to be used as a bargaining chip later on.
Those are the rules and that’s what’s wrong with buying capitalizations rates between 3.95% and 5 %. The exception for a property would require the following: Rents are below market, all leases expire within the year, rents are then raised to equal a capitalization rate that is higher the the ten-year treasury note yield, and the property doesn’t have a negative spread or negative cash flow.