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10 Important Tips to Successful Real Estate Investing! |
* Compare Property Values and Rents. Financial statistics only go so far; the best measure of a property's market value is often the sales prices of nearby properties. The same holds true for area rents. A low price can often be justified by a reasonable rent; tenters who can afford a high rent can afford to buy instead, so reasonably priced rent is a need.
* Be Careful - Tax Laws May Change. Don't base your tax investment on current tax laws. The tax code is constantly changing, and a good investment is a good investment regardless of the tax code. The right property with the right financing is what you shold look for as an investor.
* Specialize In Something You Know. Start in a market segment you know. Whether you focus on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you'll benefit from experience by specializing in one aspect of investment real estate properties.
* Know The Costs Going In! Know the financial statements inside out. What are operating expenses? What are loan payments? Vacancy costs? Taxes? What does the cash flow statement look like?
* Know Where Your Tenants Are Coming From. If the last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, they may be living there simply to attract unsuspecting buyers. It is also important to collect the tenants' security deposit at closing.
* Assess The Tax Situation. Taxes are an integral part of successful real estate investing, and they often make the difference between a positive cash flow and a negative one. Know the tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax advisor.
* Investigate Insurance Coverage. If seller's coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price.
* Confirm Utility Costs. Ask the local utilities to verify recent utility expenses, especially if any of these costs are included in your tenant's rent.
* Consult Your Accountant. Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code.
* Inspect! Make sure that you always perform a thorough inspection of the property before buying it. Never, ever buy any property without a least examining the site. In some cases, hiring professional inspectors to examine the structural mechanical system may be a sound investment.
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Remember these tips for successful investing! |
The Expert in Commercial Real Estate. Specializing in Commercial Real Estate Sales, Investment and Development.
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David L. Parker - CCIM
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Goliath Commercial Real Estate
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Prescott, AZ. 86305
Phone: (928) 443-9300
Cell: (928)713-2045
Fax: (928)443-9071
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