| 10 IMPORTANT TIPS TO SUCCESSFUL REAL ESTATE INVESTING |
| When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know: 1. Compare Property Values and Rents Financial statistics only go so far; the best measure of a property's market value is often the sale prices of nearby properties. The same holds true for area rents. A low price can often be justified by a reasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a need. 2. Be careful - Tax laws may change Don't base your tax investment on current tax laws. The tax code is constantly changing, and a good investment is a good investment regardless of the tax code. The right property with the right financing is what you should look for as an investor. 3. Specialize in something you Know Start in a market segment you know. Whether you focus on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you'll benefit from experience by specializing in one aspect of investment real estate properties. 4. Know the Costs going in! Know the financial statements inside out. What are operating expenses? What are loan payments? Vacancy costs? Taxes? What does the cash flow statement look like? These are key issues that must be addressed before making a solid investment. 5. Know where your tenants are coming from If the last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, they may be living there simply to attract unsuspecting buyers. It is also important to collect the tenants' security deposits at closing. 6. Assess the tax situation Taxes are an integral part of successful real estate investing, and They often make the difference between a positive cash flow and a negative one. Know the tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax advisor. 7. Investigate insurance coverage If seller's coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price. 8. Confirm Utility Costs Ask the local utilities to verify recent utility expenses, especially if any of these costs are included in your tenant's rent. 9. Consult Your Accountant Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code. 10. Inspect! Make sure that you always perform a thorough inspection of the property before buying it. Never, ever buy any property without at least examining the site. In some cases, hiring professional inspectors to examine the structural mechanical system may be a sound investment |
Leave a comment » Mortgage News and Commentary from Craig KoehmCraig Koehm
Lending mortgage Despite the 85,000 jobs lost last month. November's employment numbers were revised to show a net gain of 4,000 jobs. November was the first month of job growth in two years. Other economic indicators also pointed to an economy that is beginning to gain some footing. The ISM Manufacturing Index rose to 55.9% from the 53.6% recorded in November. Additionally, factory orders increased 1.1% to 365.30 billion. This week contains plenty of data that could push mortgage rates either way. The government's current program of buying mortgage-backed securities is set to expire in March, but there is talk that it may be extended and slowly phased out over the course of 2010 which would protend well for mortgage rates in the near and intemediate term. With private mortgage buyers still on shaky ground, this is welcome news if it comes to fruition. Other economic releases, such as Industrial Production data and the Consumer Price Index both released on Wednesday, could affect fixed income markets this week as well.
http://www.buyvegashomes.com/00A5AD Posted on January 11, 2010 16:54:57 by Michelle Natale
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rates began the New Year stabilizing after a slow four-week upward climb. The U.S> Bureau of Labor Statistics reported on Friday that December's unemployment rate remained unchanged at 10%. Market participants are tracking employment as a rebound in jobs is seen as essential in any sustained recovery.
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