Helpful Tips for Buying an Investment PropertyAugust 13, 2015
With the real estate market in a current upswing it seems like now would be the perfect time to invest in some form of property, either residential or commercial. While there are many advantages, like financial freedom, some disadvantages may not be so prevalent. The best way to make sure that an investment is profitable is to have at least a basic fundamental understanding of the process.
Have a Plan: This may seem like a simple idea, however, one of the many reasons investors lose money is lack of planning. So before investing, it’s a good idea to know what type of property will be bought, any rules and guidelines regarding financing that particular property, what the state and federal regulations are, and what the process is.
Decide on a Property Type: There are a few different kinds of property to invest in. A few are; homes in excellent condition, homes in terrible condition (often called fixer-uppers), and commercial (by buying this type of property the financial return is greater as mostly businesses are interested in renting space in these types of property).
Location, Location, Location: While buying a property in the most expensive part of the city may seem like a good idea, it all comes down to what type of result the investor is looking for. If the financier wants to sell and/or rent to businesses, then buying a property in a more industrial type of neighborhood would be best.