July 5, 2016
by Sharon Allen
Comments Off on Choosing The Right Investment Property
Rental properties can make for a very lucrative investment. However, you do have to know what you are doing if you want to be successful. It is strange that so few people consider rental properties as an investment, even though the returns can be so high.
First, you need something with a good return. To invest in the illiquid asset that is real estate, you will have to take money out of your liquid assets. What you should look for is to get the same or similar rate of return. This means that you should find a true cash flow property, and not a money pit.
Investing in real estate, therefore, shouldn’t be about the appreciation, but rather about the cash flow. Your cash flow is how much you end up with at the end of the month after all your obligations have been met. You can save up your cash flow and see a really fantastic pot of money building up. As rent prices go up, your cash flow will rise too. This is particularly true if your mortgage payments stay the same. A good cash flow is at least 20% of the money you get in overall. There are some great online resources in terms of calculating your cash flow.
These are the things to look for in good real estate investments. The ideal property is one that doesn’t require too much maintenance or management. Unfortunately, this isn’t always as easy as it may seem. You need to be able to invest a lot of time in order to find these properties. You will need to take the time to analyze and research any and all options that come your way. Most of us who are ready to invest in real estate want to do so immediately. 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. Unfortunately, a poor investment decision in the world of real estate can be incredibly costly and it will be hard, if not impossible, to ever see a positive return.
March 5, 2016
by Sharon Allen
Comments Off on Some Of The Things To Learn Before Making Real Estate Investments
If you want to invest in real estate, you probably want to make money as quickly as possible, with as little risk as possible. You can only achieve this if you know how to make smart choices. The following three things make for an excellent real estate investment to help you get started.
You can easily compare rental properties to stock markets. This is because most of us understand these and know that we need to spend money to make money. However, there are no guarantees at all that stocks will actually perform well. Similarly, retirement calculators work on a guess of when we will actually die. This means that you could end up broke if your life lasts longer than the estimate that was made.
Applying this to real estate investment, what you are looking for is not appreciation, but rather cash flow. Your cash flow is how much you end up with at the end of the month after all your obligations have been met. You can save up your cash flow and see a really fantastic pot of money building up. Plus, your cash flow can increase as rent prices go up over time. Best of all, your mortgage payments should stay the same. A good cash flow is at least 20% of the money you get in overall. Spend some time using the internet to work out exactly how much your cash flow is.
In order to make a good real estate investment, these are the things you should be looking for. The ideal investment property is one that doesn’t require too much maintenance or management. Unfortunately, this isn’t always as easy as it may seem. You need to have the time available to actually find these properties. You need to research and analyze and look into the available options. Generally speaking, when someone wants to invest in real estate, they just want to get started straight away. You should never invest in something that isn’t as secure as it can be, even if you have been waiting for a long time. Unfortunately, a poor investment decision in the world of real estate can be incredibly costly and it will be hard, if not impossible, to ever see a positive return.
December 5, 2015
by Sharon Allen
Comments Off on The Importance Of Working With A Good Realtors
Buying or selling a home requires a lot of forward thinking. Yes, we can do most things online now, but it is still recommended to work with a real and good realtor. Let’s explore some of the things you should and shouldn’t do when picking a realtor.
First of all, always ask for recommendations. However, you need to look for more as well. Hence, you need to do your research. You must ensure that you find a realtor that specializes in your field of interest. You shouldn’t look for someone that sells apartment blocks if you are looking for a beach house. Do make sure you actually speak to a realtor you are considering. Make sure that you ask things such as how they will represent you and work for you, how much they cost, what their experience is and more. You need to make sure your realtor understands your expectations. It is important that they understand your needs. Last but not least, make sure that your realtor is someone you like. You cannot trust someone you don’t like, after all. Last but not least, try to work with the realtor with the most experience. 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.
You must also avoid a few things. Don’t choose a realtor that you know as a friend or a relative. This would represent a huge conflict of interest and it could also mean that you struggle to be honest with each other. Also, your relationship could be tainted if things don’t work out. Also don’t work with a realtor who is also representing the other party. If things go wrong, then don’t be afraid to walk away and find a different realtor. If you find you do want to leave your current realtor, do so respectfully. Don’t tell your realtors that you will definitely sign up with them unless you actually intend to do so. You need to be honest with them and tell them at which stage you are. Honesty is the best policy and you expect honesty from them, so you need to return that courtesy.
It is hoped that the information above will assist you in finding the best possible realtor. Whether you want to buy or sell, you should always work with a realtor. One of the most important things they will be able to help you with is identifying the best time to buy or sell, and this information could save or make you a lot of money.
October 5, 2015
by Sharon Allen
Comments Off on Why You Need To Use A Realtor
It is always a good idea to enlist the services of a realtor, whether you are buying or selling. Many of us know people who work in real estate, but they may not be the best ones to represent your needs. Let’s take a look at two important things to ask in order to find out which realtor is best for you.
Your realtor’s experience is one of the most important things to look into. Usually, those with the most experience tend to deliver the best service. The best ones are the ones who started working before the economic crisis and are still going strong. However, you also have to make sure that they have experience pertinent to your own needs. For instance, the needs of a first time buyer are very different from the needs of a national property developer. The second thing you need to know if how much of an expert they are in terms of the geography and demographics you require. For instance, if you were to purchase a farm, you need to work with a realtor that is very different from one that only works with apartments in major cities, as your requirements will be very different. If, however, your interests lie in historic or listed buildings, you will need a very different type of realtor.
If you want to buy a property, do not work with the realtor whom the seller has employed. This is because that realtor would be legally obligated to tell their other client your highest budget and other information that could damage your negotiation position. Similarly, if you want to sell, you also need a different realtor. You need a professional that represents you and only you. To start your search, ask people you know whether they have any recommendations. Alternatively, contact the NAR (National Association of Realtors) to find a realtor. Finding a NAR realtor means that you are guaranteed to be represented ethically and professionally. Don’t choose the first and only realtor you speak to, however, but look around at a few different ones first. Make sure they have a great understanding of your needs, so they an start making suggestions too. These conversations can help you determine just how much a realtor knows about a specific neighborhood, house prices and so on. If you want to sell a property, you must find out how well the realtor has performed in the past. Do they usually sell under, on or over the original asking price?
As you can see, with a bit of forward thinking, you should be able to find the right realtor for your needs. It is their goal to ensure you are able to find the home you are looking for. Make sure, therefore, you pick someone that you can trust in that job.