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guide to buying investment properties in todays market

by: englewoodflorida( 472Feedback score is 100 to 499) Top 5000 Reviewer
5 out of 6 people found this guide helpful.
Guide viewed: 2016 times Tags: investment | property | guide | how to | land


   Real estate is still booming here in southwest florida !!

    thought you missed the real-estate boom ?   Think Again.    take a moment and please read on !!

  real- estate here in most of southwest florida has taken a hit like most of the country.  sure, sales have slowed... does that mean there is no deals out there ?  not at all !!  there are more deals on real property in this area than ever before ...

        thats not what the "so called experts" say ,  but they are not out there looking are they .   with the slowing in sales , the prices on land and homes in this area have dropped !!  thats right !  home and land prices have dropped !

    But, how does that help you ? 

     a savvy investor should be buying now while sales have slowed.  now is the time to invest, when the market has slowed, not when the market is booming and prices are inflated.   buy low and sell high !   dont be a bad investor and buy high...

   HOW I DO IT

  SIMPLY PUT,   a smart investor has several things in place before they look at a property to invest in.

  1. financing - have funds ready to go.  it does no good to find a great investment if you are unable to buy it NOW ..
  2. be ready to put the property under contract - if you are unsure of how to do this seek legal advise and have a contract prepared.
  3. research the property -  know what you are buying.. check for liens, title problems, flood zone, insurance costs, ect.
  4. find the true market value of a property  -  nothing against a realtor, but , they are sales people working on commission. do your own research !!!  check the sales in the same community ! which sold through a realtor vs by owner.. compare prices on similer properties only.
  5. check the mls ... what is on the market in that community,  how long at that price ?  has the price been reduced ?
  6. look for  "for sale by owner"  properties.  find a similar property listed by a agent and compare .. there should be a minimum of 4% difference showing the savings of not using a agent.   always ask owners if they will hold the note. or a discount for cash and a fast closing
  7. deciede on how long you will hold the property.  are you flipping or holding it for investment ?  for a flip on a property i look for a relisted price that will be the lowest property available in the area... i want to sell fast and take my profit..   buy low and sell low.. i look for a minimum return of 25-30%  return in 30-60 days.
  8. buying a home ?  rental ? flip ?  for a rehab job estimate costs and time expected to complete it and double both the figures.  check permits required  by state / county .  dont forget to include all costs to maintain the home monthly... include utilities/ lawncare/landscaping/mortgage-payments/ cost to do the work/ materials/  and the time it will sit empty waiting for a buyer or closing.. the power must remain on while empty..
  9. expect the unexpected !!   no one expected the property boom to go forever , but those caught buying more home than they could afford are now being forclosed upon !!  
  10. look for those in trouble !  there are a lot of forclosures out there .  a lot of motivated buyers .. find them and shop around. 
  11. never pay sticker price !  be ready to walk away and do it. 

            the person with the $$ is the one who controls the sale...  never pay asking price.. ask for extras..

 

   feel free to ask questions , but please read both my guides first ..

  


Guide ID: 10000000003205126Guide created: 03/15/07 (updated 04/09/08)

 
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Related tags: property | house | lot | how to | land | investment | lots | guide

 


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