If you are interested in buying real estate for investment, there are several steps you can take to get started. The first one is to not overanalyze. While you are thinking too much, you may be losing great opportunities to make money.
When you find a property you like, make an offer. Get the property under contract, but put in a safety clause that allows you to get out.
Talk with fellow real estate investors and real estate brokers about the property value. If it makes sense, go ahead with the purchase.
If the property purchase is to do a quick flip on the property, then the neighborhood does not matter. What is important is the money that you will make on the property.
The best buy will be a house/townhouse/condo/building in great condition in a good neighborhood.
The second choice will be a fixer-upper that just needs some cosmetic work in a good neighborhood.
Either you inspect the property or have it inspected. Try and get the seller to fix as many things as possible. Drive around the neighborhood, looking at the houses, checking out their condition. Look at the cars in the street because old cars and trash can mean a less than great neighborhood. This means you should buy and sell as quickly as you can.
Work with a real estate broker or an agent, at least in the beginning. Try and use the MLS to find deals for yourself.
Shop around for your financing. When you work with loan officers, email them your questions and ask them to email their answers back to you, so you will have everything in writing. This is important in case they later try to change the terms or rates or add in junk fees.
Try to get the loan officer to reduce the title and/or escrow charges. Always review them with an experienced investor or a real estate broker or agent.
Use a real estate attorney to represent you at any foreclosure or pre-foreclosure purchases and at any closings.
Network and connect with other real estate investors. You can learn a great deal of first-hand experience listening and talking with them. Getting just one valuable piece of advice could mean thousands of dollars to you.
Market yourself. Have business cards made and hand them out to interested people and potential investors. Develop a website, place ads in the local newspapers, and attend chamber of commerce business after hours and workshops.
When you buy and sell property, ensure you use the correct real estate forms and meet all the legal requirements. Working with a real estate broker or a real estate agent can be a real help with this part. It may even be worth considering getting a real estate license yourself if investing in real estate is something that you are considering as a fulltime occupation. If you have your real estate license you will save the realtor’s commission on any property you purchase.
Investing in real estate can be very profitable, especially if you are able to find properties that are in good condition and which can be turned over quickly and for a profit. This is when investing in property can be well worth the effort and time.