Real estate investing can be an extremely rewarding process, but it can also carry some worth-noting risks. Troubleshooting for these issues begins before the purchase takes place and continues throughout ownership. Here are some tips to help get you started.
The thing to address first and foremost is the financial aspect. Buying profitable real estate means investing in properties that are cash flow positive. Rentals should provide a fair rate of return on the invested equity. Also make sure to secure long-term fixed rate financing. Financing or refinancing a property can end up costing you more in the long run or effect transfer issues.
When it comes to “fixer-uppers,” you may want to look elsewhere. Projects that involve extra remodeling or renovations are very much likely to loose money in the end. Estimating the cost of repairs can be difficult to the average buyer, except for construction contractors that have experience in such. Obtain experienced contractor opinions before you consider a “fixer-upper”.
Take an in-depth look through all title documents. This includes the title insurance policy, title abstract, schedule of exclusions, and a survey of the property. Schedule some time with an Florida Real Estate Attorney to assist you in going through all items in detail and addressing any issues before you go forward with the purchase.
Proper insurance should always be put into place for each specific property and circumstance. Speaking with an experienced Title Insurance Agent will make it easier to cover all liabilities and reduce the chances of anything severely impacting your finances.
All areas touched on above are great places to start when considering a new real estate investment. If you are relatively new to property investment, speaking with seasoned long-term investors and Florida Real Estate Attorneys may offer some insight into how to go about taking on a new project. At Gulati Law, we are able to work with you in all these areas. Contact us for more information today!
Source: Zillow Blog