4 Tips for Anyone Looking to Invest in Property

Buying property of your own is a big undertaking. You have to be in the right place in your life and have the money to invest. There are a lot of options out there, which makes it an overwhelming process for some people.

Take your time and don’t jump into any rash decisions. Rushing a deal may leave you with regrets down the road. Don’t let your excitement get in the way of analyzing the details and crunching the numbers. Be smart and get help from experts or those who’ve been through the process before. See these tips for anyone looking to invest in property.

Do Your Homework

It’s important to study what’s out there and have an idea of the market before moving forward on a purchase. Take advantage of resources and scour websites for answers. Search 1031 exchange properties for sale and use the website to view property details and pricing. This will give you a better idea of what you can afford. They can provide you with access to national contacts that they’ve vetted throughout the industry and with some of the largest buyers of commercial real estate in the country.

Find the Right Location

Consider location when you’re searching for an ideal property. Don’t let a low price draw you in and forget that you care about where it’s located. You want to get a prime spot that’s going to be easy to fill with tenants or rent out for a retail store. A neighborhood with low crime rates and low property taxes is ideal. Think about if you want your structure in an up-and-coming neighborhood that has good restaurants and schools. Don’t guess, but research and find specific answers to your concerns.

Fix It Up

If you purchase a building that’s rundown or unattractive, you’re going to want to spruce it up with appealing designs and décor. Hire a contractor and interior designer to help you if you aren’t skilled in those areas. You want your building to be viewed as striking and clean. Think about how much work you’re going to have to put into it before finalizing the paperwork. If you’re handy, that helps lower costs, but if you’re going to have to hire a bunch of people to help you, then make sure you budget for these expenses.

Fill the Space

Once you’ve made the purchase, decide how you’re going to fill the space. Consider if you’ll rent it out and what kind of business you’ll do. Keep up with maintenance to save yourself big headaches down the road. Avoid tenant turnover by keeping them happy so they enjoy renting from you. Have strict procedures in place to screen tenants and weed out the less reliable ones. Hire a property manager to help you with certain duties and pay your taxes on time.

Conclusion

The bottom line is to keep your expectations realistic and head on straight. If you’re not ready to make your first purchase, then work with a trusted partner who can guide you. These are tips for anyone looking to invest in property.

Why it Pays to Take Your Time When Looking For Your Dream Home

Humans are impatient – it’s in our nature. While we might spend our daily lives rushing around from A to B, house hunting, on the other hand, requires time and patience. The real estate market is incredibly difficult to navigate, especially for first time buyers or investors. Fluctuating prices, a quick turnover and even lack of offers or availability in some markets, can all have a big influence if you are on the lookout for your dream home. However, if you are already on the property ladder, or just setting out – then don’t despair. Your ideal property will be waiting for you. Read on to find out why it pays to take your time when looking for your dream home.

The waiting game

Yes, you might be anxious to find your ideal property tomorrow, but when it comes to real estate, it pays off to view various options and consider your offer. If you are interested in a house or apartment in a more popular area for example, then you will have less scope to lower your initial offer – setting yourself up for disappointment if you are on a tight budget. It’s worth taking your time and checking out what you can afford, even if it’s a few miles away from your chosen location. Often these areas will hide hidden gems, or properties with a whole lot of potential, meaning you can use that extra cash to invest and improve over the long term. So while you might be anxious to sign on the first property that you view, take a step back and view other alternatives in the area.

Research the Real Estate market

Understanding and making effective use of the US real estate market can be tough. When browsing for your dream property, you want to make sure that you choose an agent that not only has a wide range of properties on offer in their portfolio, but also offers service and quality to you as a potential buyer. Agencies such as Great Blue Real Estate Marketing Systems offer a competitive market analysis and a range of properties to choose from, meaning you have more choice if you are buying or selling your current home. It’s all too easy to feel pressurized and get swept up in the moment, when waiting a few days could have seen a cheaper alternative come onto the market. So don’t let agents force your hand and do stand your ground if you feel like waiting a bit longer is the ideal for you and your family.

Whether you are looking to relocate or only move a few miles down the road, be sure to take your time when viewing potential new properties. Remember why you are moving in the first instance and don’t feel that you have to purchase the first house that you view. More haste and less speed are key when navigating the property market, so take your time. Your ideal home will be out there waiting for you.

Flipping Houses vs Real Estate Investing: Why Investment Firms Consider Them as Different

When looking for investment opportunities the stock market offers potential but a tremendous amount of risk. An alternative to buying stocks is real estate investing which is different than flipping houses, although you can make money with both.

Making Sense of Real Estate Investing vs Flipping Homes

To shed some light on this we need to first understand what each term means in both the street vernacular and investing vernacular.

· Real Estate Investing Model

With this model you either purchase a property yourself or in a partnership where the property is owned for the sole purpose of generating an income. This income is derived from renting out the property to tenants. If the investment property requires renovation then those renovations would be performed prior to the units being rented out. The owner can earn money in two ways with this type of investment they generate income from the rent minus any expenses. These properties are usually discussed based on their cap rate which is the percentage earned per year for example a 5% cap rate would mean it take 20 years to recover your original investment.

Along with the rental income, if the property increases in value over time this “appreciation” can be used to either borrow money against the equity or when the property is sold. The difference between the price you paid and current price it was sold for would be taxed as capital gains which is more favorable when compared to individual income tax rates. There is no compulsion to sell the property so you can earn income from the rental in perpetuity.

· Flipping Houses Model

In this model an investor would purchase a property to renovate it for a quick sale and profit. The investor would identify distressed properties or those being foreclosed on by local banks. These properties are usually sold “as is where is” at a discounted price. You could try to resell those properties but would not make anything on the sale.

Where the money-making opportunity comes is when the property is renovated. Playing on your renovating expertise you will be able to allocate capital to the renovations so the value of the property would increase dramatically, you can get more details here. After having completed these renovations you would then try to quickly sell the property for a profit and move on to the next opportunity.

Contrasts Between Both Investing Approaches

With the real estate investing approach you are using a “buy and hold” approach which provides a steady stream of income over a prolonged period of time. Along with the stream of rental income you may be able to benefit from appreciation of the property.

With house flipping you are looking to sell the property for a lump-sum then move on to the next opportunity. Flipping houses is more labor intensive and hands on but the upside is you can make quick cash. With real estate investing you don’t have to be as hands on but the income potential is spread out over years instead of weeks.

4 ways to invest in your love of homes

If loving your home comes naturally to you, it makes sense for you to turn this into a clever investment. Don’t just consider the here and now. Think about your future and how your love of property can help you to save, or even make, money in the long-term. Property is a fantastic investment and a continuously growing market. Therefore, you can be reasonably certain that investing in property now will have a number of benefits in the future. This doesn’t always have to mean purchasing a new house, or place to rent out; instead, there are a number of ways to invest in your love of homes.

Invest in the environment

Thinking about the environment and your carbon footprint is a clever way to save money. You can lower the cost of your bills and generally make your house more energy efficient. However, you can also take this a step further by making money out of being eco-friendly. This is possible because in America, electric utilities on the traditional power grid are legally required to purchase excess energy generated by renewable energy systems.

Start a blog

With the rise of the internet, nowadays everything seems to be online; so, why not your love of homes? Consider writing a blog that details your love of property. You can write whatever you want. Whether it’s property prices or DIY advice, blogs can be a great way to unleash your creativity. They can also make you money. If you focus on growing your blog’s readership, you may be able to secure advertisers for your site. A YouTube channel or an Instagram account are also clever ideas for using the digital world to invest in your love of homes.

Join a franchise

Why not consider a career in home inspection? If this sounds like something you are interested in, then joining a franchise is a clever way to operate independently while still receiving the training and reputation from being in a larger company. Pillar to Post is featured in Entrepreneur Magazine top franchises. It is an excellent investment for your future as it was ranked the top fastest growing franchise.

Become a property developer

Becoming a property developer is a further way to turn your love of homes into a savvy investment. It is important, before you get started, to understand just how high the stakes are. Although it is possible to make a great deal of money in property development, it can also be a risky business. Read up on all the best techniques for getting the most for your money, and securing a profit. Organize your personal finances so that you know exactly how much money you are able to spend. If you don’t have enough money yourself, take the time to make sure you secure the best loan available. It may take a while, and you may be impatient to get started, but ensuring that you follow the process correctly is an essential part of protecting your assets.

Interior Decoration May Depend On Your Property

Finding Property In A Historic Community

Lewis and Clark headed west in a historic journey which soon became a cornerstone of American history. The place they left from was the cultural zenith in the west at the time, St. Louis, Missouri.

The city has over a hundred years of history, and some of the country’s most historic neighborhoods. There are some real property treasures in St. Louis, and they’re yours for the finding.

Because of their history, some will have naturally evocative interiors; others will require a more personal touch. But before you get to the interior design phase, you’ve got to find a property. There are some ways to go about securing a top-tier property in St. Louis that are better than others.

To begin, you want to use the services of a local realtor who was born in the area and understands it intimately. There are always neighborhoods with greater historicity than others. There are also those who have greater property value than others. Some neighborhoods are in natural appreciation, some aren’t.

When you’re purchasing property, you ideally want to see that property’s value increase over time. Certainly it’s possible you’ll find the diamond in the rough yourself, but a good realtor has the potential to save you a lot of hassle, and even find diamonds you didn’t know to look for. Also, how you outfit the home’s insides could itself prove ultimately profitable.

Additional Considerations

You’ve got to think about more than just the neighborhood and the property even when it comes to interior aesthetic. There are historic neighborhoods that are low crime, and those that are high crime. There are properties that seem like a steal, but it turns out they were used for illicit purposes previously. Inside decorations may require security measures.

A good way to start your search is to make a list of qualities you’re looking for in a property, inside and out. List needed features: how many bedrooms, how many bathrooms? Do you want a home with a porch, or a deck? How about a backyard? And what are your negotiables? Do you have any non-negotiables? Most importantly: what kind of budget will you be working with?

When you know this information from the start, you can narrow down your options. With the touch of a local realtor, you may be surprised to find what options are truly at your fingertips. Oftentimes there are more than one which match your parameters in a historic metropolis as tenured and populated as St. Louis.

The Local Touch

If you’re on the hunt for real estate in the St. Louis Missouri area, you want to find a realtor who truly understands the history of the region; that, as SoldByIrene.com puts it, understands St. Louis: “…is known for its vibrant culture, diversity, and opportunity.” When the cultural component is brought into the mix, an entire new category of real estate possibility manifests.

Some homes are located in cultural centers, and are ideal for more purposes than those of the traditional family. One thing that is especially considerable right now is the economy. It will always ebb and flow. St. Louis home values dropped recently, but they’ve seen a 10.1% increase, and are expected to go up an additional 4.1%. Right now is a good time to buy.

That said, whichever property you end up making your own, you want to approach the housing hunt with caution and time. Don’t rush into anything, and be sure you explore all the possible properties that match your parameters. Do that and you’re sure to find the home that matches you and your family.