Real Estate Tips For Beginners

Have you always wanted to invest in real estate but don’t know where to start? Here are some of the different areas of the industry that you can invest in:Areas That You Can Invest InResidential: these are properties such as townhouses, apartment buildings and vacation houses. Here a person or a family will pay you in order to live in your property. The length of time that an individual lives in your house depends on your rental or lease agreement.Commercial: commercial real estate consists mainly of office buildings. When you construct office buildings you can rent them to companies and small business owners. Again the length of time that the business owners use your property depends on your agreement.Industrial: this one consists of car washes, storage units and any other special type of real estate where customers use your facility on a temporary basis.Retail: it consists of trip malls, shopping malls and any other retail storefronts. When you construct a mall, you can rent it to a person interested in running it or you can run it yourself.Mixed-use: this is where you combine any of the above categories into one project. For example, you can construct a storied building with offices, malls and residential areas.Real estate investment trusts (REITs): this is where you invest in real estate trusts. When the mortgages generate profits, you get a share of it.Tips on How to Be Successful In The IndustryFor you to be successful in the real estate business you need to do a number of things:Involve an attorney: regardless of the area of the industry that you are interested in always involve an attorney. A good attorney will help you in finding the right construction company. The attorney will also help you in writing professional rental contracts.Neighborhood: the area where you invest in greatly determines the amount of money that you will make from your investment. To be on the safe side always go for a neighborhood that is growing or has the potential of growing.Run the numbers: many investors assume that when they construct a building they will have a tenant, which is usually wrong. Before you invest in a building you should run the numbers and find out if you will be able to pay the mortgage if the property sits empty. If you find that you can’t be able to repay the mortgage in the event that the property doesn’t have a tenant for a month or two, chances are that you are stretching yourself too thin.

Real Estate Tips For Buyers

Buying a home can easily be the most expensive purchase a person makes in his or her lifetime. The decision fosters feelings of excitement and enthusiasm. But, before a buyer is swept away with the euphoria of acquiring a new home, a certain amount of caution should be exercised. Before a buyer signs on the dotted line, there are at least 10 things to be considered.
Before venturing out to look at the first house it is wise to be pre-qualified to determine how much you can afford. A pre-qualified letter also puts you in a good position to have your bid taken seriously by a seller.

Don’t get caught up in the aesthetics of a house. Instead, look at the soundness of the structure.

Resist buying the first house you look at because you think you absolutely must have it.

Make a list of non-negotiable amenities you must have in your home and don’t compromise.

Don’t assume that a house is priced accurately. Do your homework and investigate how much similar homes in the area sold for in the last six months.

Check to see if there are back taxes due on the property you are interested in. This could give you invaluable bargaining power with the seller.

Find out how long the house has been on the market. The longer a house has been listed, the more motivated a seller may be.

Remember the golden rule of real estate is location, location, location. Make sure the house of your dreams isn’t in a location you are not prepared to live in. Visit the home at different times of the week and at different times of the day and night.

Find out what construction is planned for the area that surrounds the house you are thinking of buying.

Make sure the house is inspected from top to bottom by a professional home inspector.

Following these simple steps will help to ensure that what is probably the most important purchase of your life is a good investment whether you intend to stay in the home long term or not.