Investing in Real Estate
and Foreclosures
(06/22/08)
Are you looking into buying or investing in real estate,
maybe even foreclosure properties? There is a big market
for you right now, and the properties on the market are
up for your picking. Everything from single family
residencies to apartment complexes and townhomes,
condos, vacation homes, duplexes or just plain old land.
You have a wide selection out there for you and a huge
inventory. Plus, prices are prime for buyers. Agreed,
prices will probably still decline over the rest of 2008
depending on location; but there is definitely money to
be made out there.
With all of that in mind,
there are many things that you need to consider before
you jump into a real estate deal. Hind-sight is very
helpful in such situations so let me offer a few lessons
that I have learned from my real estate dealings (albeit
hard lessons from sour deals, but that just makes them
hard-earned lessons).
Have you asked and gotten answers for these questions:
□
When did the property last
sell?
□
For how much did the
property last sell? (Tip: If the price
went up a great deal over a very short period
- not likely in today's market - there better be
some really good reason to support this like
remodeling or something.)
□
Who are the sellers?
□
Why are they selling?
□
Can you verify their
reason(s) for selling? (Tip: Do not
take their word for it. These people are out to
sell a property, not be your friend.)
□
How much are the annual
property taxes? (Tip: The taxes from
the previous year might not be the same for the
new year. For instance, Florida revalues
property for property tax purposes on the first
of each year.)
□
What type of insurance is
needed for the area?
(Tip: Ask your insurance agent this
question, not the seller or the real estate
agents.)
□
How much does insurance
cost? (Tip: Ask your insurance agent
this question, not the seller or the real estate
agents.)
□
Are there home-owner
association fees and how much are they?
□
Are there any special
assessments against the property?
□
What do you plan on doing with
this property?
(Tip:
If you plan on renting out
this property, do not count on any rental income
to pay mortgage payments or any other related
expenses. Past rental income is no indication of
future rental income.)
These
are only a few of the questions that you should be
asking yourself about whatever property you are
considering. Feel free to post comments if you have
questions or email me (Noah@ShortOnChange.com).
Also, please keep in mind that I have three
properties for sale at half of what I bought them (Noah's
Properties).
Comment: All that is
true and well and good---but u forgot one question--how
will u pay for it--better have cash--no bank will touch
investor loans--hardly making loans for primary
residences--so, yes, would seem to be a good place to
invest right now, but only going to happen for those
with plenty, willing to risk their cash--that is why
there will be no rapid bounce back in the resort real
estate market--even though prices are probably at rock
bottom--of course I could be and hope I am wrong---chuck
You can subscribe to updates for this blog entry or for new blog
entries on the comments page. You would then be emailed whenever
a new blog entry is added or a blog entry is updated. You may
unsubscribe at any time.
