If you are planning to invest some of your money into real estate then here are the things that you should do:
1. Partner with experience – First-time investors should find a Realtor experienced with investment property deals that can help you locate promising properties. “Look for relational brokers who expect to do business with you again and therefore are going to be much more careful with what they recommend,” says Merrill. A second option is to collaborate with a more experienced real estate investor and close a deal together. In this economy, an experienced real estate investor may be willing to work with you in exchange for the capital you can provide, giving you the opportunity to glean investment knowledge and experience firsthand, Merrill says.
Even if you don’t collaborate with other real estate investors, talk to them about pitfalls they’ve experienced. “Go down to the general district court in your area and listen to some landlord/tenant cases so you can get a sense of what kind of challenges landlords face,” says Jeffrey Taylor, author of “The Landlord’s Kit.” Source: Bankrate
2. Mortgage interest rates are low again – Several years back when the mortgage rates hit an all-time low, people went crazy buying homes and investment properties. Some of the same people ended up getting greedy and borrowed against their newfound equity, which eventually contributed to the downturn of the real estate market. Don’t repeat these mistakes. Source: Money Crashers
3. Find a mortgage broker – These are essentially “freelancers.” They take your application and “shop it around” to a variety of different lenders. They’ll come back to you (hopefully) with several offers from various lenders, and you can pick the loan with the interest rate and terms that best fit your own unique financing needs. These may be your best bet if you have weak credit, if you’re self-employed, or you have other issues that don’t quite fit the bank underwriter’s cookie-cutter criteria. One important point: Property flippers should avoid llong-term loans with pre-payment penalties. These will just mean an additional cost when you eventually do sell the house and pay the mortgage off early. Source: Real Estate
Ian Klepsch – Duncan BC Realtor
2610 Beverly St Duncan, BC V9L 5C7