Short Course on Sales – Getting to Square 1

Ashe Morgan 2017: Facts and Tips About Real Estate Investment

When it comes to purchasing a real estate property, the first thing that comes to mind is a home. Basic rental properties refers to properties that are purchased and rented out to tenants, wherein the owner becomes a landlord, being responsible for paying taxes, mortgage, and the property maintenance and repairs. As the landlord, you may charge more to gain higher profit, or charge just enough to cover your expenses until the mortgage has been paid for the rental cost to be appealing to future tenants, and for long-term stay. A real estate investor must equip himself with the right knowledge, skills, and attitude toward real estate transactions, whether buying or selling, and if needed, will hire an expert for assistance.

For a real estate investor who is seeking for an income stream from real estate rental properties, it is a must to consider the location of the property as well as the market rental rates. It is a good idea purchasing a property from developing communities, where new infrastructures are being built while the price of the properties are still low. You don’t want to have a poor paying tenant that will leave you with a negative monthly cash flow, so it pays off being strict about requirements such as credit report to know the paying capacity of the person who is interested renting your property, and obtain a renter’s resume if possible showing relevant information about character references and previous landlords. It is a smart decision hiring a property manager if you have several rental properties to handle, so you can focus on the most important aspects of managing all of your real estate investments because doing it on your own is really daunting, stressful and time-consuming.

If you are not into rental properties or if you think being a landlord is just too tedious for you, you may consider flipping or be a real estate trader, wherein you can buy real estate properties and hold them for a short period of time, usually no more than 3 to 4 months, and in turn sell them for higher profits. Flipping is being considered as a short-term cash investment wherein a flipper don’t spend any money on repairs or property improvements because the real estate investment has to have an intrinsic value to make profit without any alteration. There are also real estate investors who renovate reasonably priced or cheap properties to increase their value, and sell them for a higher price.