Tuesday, October 24, 2017

Something To Look Forward To Each Day

tipsforsuccesswithlynmodel

 

Home Ownership 

Buying a home is one of the biggest purchases in most people lives.

Millionaires make their fortunes in the real estate market.

You should have a investment strategy though there are many ways in which an investor can go about the process in buying real estate.

You are in business when you purchase a home regardless if you are going to live in it, rent it out or flip it.  

Reasons To Purchase Real Estate

1.  Personal Use

2. Flip It

3. Partnership

4. Rent 

Types Of Investments In Real Estate

1.  Residential

2. Business

Avoiding Pitfall As A First Time Home Buyern

1.  Bad  loan terms

2.  Emotional attachment

Bad loan terms.

Getting into a loan term you will not be able to pay later is a bad loan agreement.  A loan with adjustable interest rates that you will not be able to afford when interest rise; is not a good loan for you.  Balloon mortgages might not be a great suit for you.  Research and ask questions before signing any loan agreements.  

Real estate investing is not an exact science. There is no formula in this business that
guarantees success. Even seasoned professionals will find the occasional bump in the road
even on a property for which they had high expectations. Stuff happens along the way that
cost money, delay the project, or set the project back. These things are stumbling blocks
no doubt but should not be allowed to derail the entire project. When these things happens
go back to your original plan, reassess the situation and create a new plan with the necessary
adjustments in mind. The key is in sticking to a plan the entire time and never throwing the
plan out the window and flying by the seat of your pants.

Your plan will be your lifeline throughout the project. You need to have a plan and a budget
in writing. One great rule of thumb is that you set aside double the amount of money you plan
for in your budget. This gives you a bit of a safety net for the inevitable things that will
go wrong. Things will go wrong on almost every flip you encounter. Even the seasoned
professionals that have television shows about their flipping efforts encounter problems
in almost every single flip, rehab, or renovation.

For your first few investment purchases it is recommended that you purchase properties
that need little more than minor cosmetic repair rather than complete rehabs or renovations.
This allows you to get your feet wet without the incredible risk of going off the deep end
mentally, emotionally, and financially. These properties represent lower profits but also
lower risk. They also allow you to gain valuable experience and raise a little capital in
which to invest in properties requiring more extensive work in the future.

Keep your eye on the carrot at the end of the project. Far too many would be property
investors give up just before they reach the point of true profitability. The goal
is the profit at the end of the project.

 

Beginners in real-estate investing and first time homebuyers would often experience blunders when they look for houses to purchase. To avoid such frightful experience, which could lead to loss of time, effort and even worse your money; you would have to learn what common mistakes are made in real-estate and how to avoid them.

Lack of research

When buying properties and houses, you would have to go back to the basics: which is doing some research before proceeding with any kind of purchase. Research is basically asking questions about the house or the property. You could ask questions similar to the following to have an idea about the property:

  1. Reasons for putting the property on sale
  2. Any problems about the house’s foundation that needs to be addressed.
  3. If the former owners have paid for the house and the methods of payment.
  4. If there are any problems in the area where the house and property is located like being near a flood zone, termite problems, etc.
  5. If there are any problems in town area.

Not considering the bidding and maintenance cost

Your research would also include the price. It is a common scenario when a buyer would tend to offer a higher price for a property that would fit their needs and demands. Before bidding for a property, search for similar houses in the area and how much were the sold in the last few months. It is better to look at houses and properties that were already sold than those houses still up for negotiations or sale. Buyers should bid consistently with the other houses’ prices.

Aside from the upfront price of the house or property, buyers would also forget to factor in the maintenance cost of the house.

Without considering the maintenance cost, homebuyers would often find themselves buried in debts. Real-estate investors should always keep the expenses in mind when buying property. Since the cost of improving the home would definitely have an impact how they would price their house. Having the home inspected could put a dent on your bank account, but never sacrifice it. Always get a good home inspector even if it means you would be spending more

Too much waiting

There is nothing wrong with waiting for the right house but a homebuyer should be realistic. It is difficult to find for a home that would fit 100% with their needs and demands. Homebuyers who are looking for homes with this method would usually by pass homes that would be meeting nearly all of their standards. Usually, homebuyers who wait around for their perfect homes for sale would not notice that the cost of purchasing properties is constantly increasing. To avoid this, it is important to sort out priorities. Identify the top needs that should be provided for a prospective home.

Without any professional assistance

Another mistake that most homebuyers make is that they think can get a house on their own. There is nothing wrong with buying property and house without any professional help. It is just that it could be very stressful and would take much of your time. Real-estate agents have the resources, contacts, and tools that would be able to help make the search quicker. Aside form the real-estate agent, if you’re planning on investing on this industry then you would also need a home inspector, a lawyer and an insurance representative.

 

Resources:

 

 

Become A Travel Agent Click Banner Below:

pnt_net_banner

 Moses Pro Travel Network 

winecheeseheader

www.winecheesenspice.com 

Archery_Banner-01

archeryarchery.co

 

Ambassador Program - Turn customers into Brand Ambassador

Sign Up For My Newsletter

Here is how I can help you learn about my subscription blog here.

 

 

 

How to Subscribe With an RSS Reader  Follow This Link

Keep up with my new blog via mobile, web, Facebook, Google

CLICK LINK BELOW:

If you need a domain or hosting.

 

Thank you for letting me share with you.  If you found this to be of value please share with others and write a comment.

New Blog Talk

~Lyn Moses

Build Your POWER TEAM

 

 

Incoming search terms:

  • tips to look forward to each day

Speak Your Mind

*


*