Finding investment properties is not as hard as it may seem. There are many avenues to choose from when trying to locate a good investment property. With thousands of houses on the market, it is actually easy finding investment properties. One of the first sources would be the Multiple Listing Service (MLS) listings of your local real estate agent. The multiple listing book has every property for sale in the local area. This usually means the entire county. Some MLS books have more than one county listed. Agents who live or work close to a county line may cover portions of another county. The agent is licensed to work in the state, not just the county.
When you search through the book, you can also generate some other interesting facts about an area. You can tell what the market is doing. This is one reason every good investor has a real estate agent he or she works with. The wealth of information gleaned from a knowledgeable agent is worth more than you can imagine.
Another great place to find investment property at superb prices often below the market value is at property auctions. Property auctions usually feature many home owners, who, due to financial misfortune or other compelling circumstances, have turned to selling their investment property to the highest bidder in an auction. There are many reasons why good investment properties might appear in an auction of this nature; lenders such as mortgage providers might have re-possessed a property, the property might be dilapidated to such an extent that the owner does not have the time or money to re-develop it, or a whole host of other reasons. Local estate agents will be able to advise potential investors of the location of auctions in their area.
Another good source for finding investment properties is to view local tax lists. This allows you to know what properties are in distress. Many times someone who can not pay their taxes can not pay the mortgage either. In some cases the taxes are included in the mortgage. If this is the case you know for a fact the property is headed for foreclosure. When the mortgage is not being paid there is no money for the taxes to be paid. There are some areas where it is mandatory for a finance company to put foreclosure proceedings in the local paper. For someone who is interested in pre-foreclosures, this is a good way to find investment properties. The listings lately have been very long. It is estimated that over one million homes will face foreclosure in the next year.
The government agencies like the Veteran's Administration (VA) and Housing and Urban Development (HUD) both list their repossessions on the Internet. The investor who is dealing with foreclosures can find many investment properties this way. There are some financial institutions which list the Real Estate Owned (REO') properties on their web sites as well. These are properties which the mortgage has been foreclosed on. Many good deals can be made on these properties by the savvy investor.
No matter where you look for an investment property there are some basic rules to remember. Never buy at full market value. You want to have at least 20% equity in the property for it to be a good investment. Know your market. If you do not know what is selling and what is not, there is no sense in even trying to invest in real estate. Have a marketing plan of action. You need to know what you are going to do with the properties you want to buy. Make sure there is a backup plan in case the first one does not pan out. Set up a real estate team to help you with any of your real estate needs. This means working with a real estate agent, an inspector, an appraiser, and even a loan officer. The more people you know who know real estate, the better off you are.
Investment Properties For Sale
To begin investing in real estate properties you don't need to have a huge start up capital. If you have a tight budget for investing it doesn't mean that you can't reap the financial benefits of fixing up homes for resale. Actually many of the cheaper homes you can buy and remodel inexpensively will get you the greatest return on your investment.
To successfully invest in real estate on a low budget you should start by finding a cosmetically challenged home with a strong structure that is in a mediocre neighborhood. Once you begin looking in the right areas you will see that it isn't very difficult to find an investment property with a low asking price.
The selling price of a fixer-upper home can be negotiated considering all of the flaws. This makes is easier for you to invest small amounts of money to add the maximum amount of value to the property.
When it comes to real estate investment quality doesn't always have to mean a lot of money. You might be surprised at how far a new paint job, fixtures, and flooring can go when it comes to the over all appearance and value of a home.
If you aren't convinced that you can manage investing in real estate on the budget you have set up you can always turn to your own investment, your home. If you have already purchased a home then you can leverage this asset to gain the capital you need to feel secure investing in real estate.
A homeowner that has paid their monthly mortgage payment on time and has decent credit will be able to get money in their hands faster and easier then they ever imagined. Whether you have a considerable amount of equity in your home or recently purchased it, it is possible that the property increased in value creating a larger amount of equity for you to access.
To calculate the amount of equity you have built up in your property you take the current balance of your mortgage loan and subtract it from the home's market value. You can generally get the amount of your equity in a secured form of credit such as a home equity line of credit or a home equity loan.
You can also refinance your property to receive a lowered interest rate and some spare investment cash on the side. You can then use the money given to you as the means of buying an investment property or at least using it as a down payment. Be sure to ask your lender about any rules regarding cash-out refinancing. The majority of cash-out refinancing mortgages come with a higher interest rate attached then other types of mortgage loans.
Homeowners can use their home's equity value to receive a home equity loan as another option. A home equity loan is a type of second mortgage to the one you are currently paying off. Opting for this type of loan offers many benefits including the ability to repay the loan early without getting hit with a large penalty fee.
You may wish to contact Joe and Colleen Lane, Realtors? for more info on real estate, especially in the areas of Pasco Wa Real Estate, Richland Wa Real Estate, and surrounding Southeastern Washington Communities.
Both Kim Lee & Spencer Hunt are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Kim Lee has sinced written about articles on various topics from Bathroom Remodeling Ideas, Sell Home and Real Estate. Kim Lee writes for Number 1 Rental Portal in Singapore This portal lists rental properties like HDB flats, whole flats, landed property, office space, private condos. Kim Lee's top article generates over 40500 views. Bookmark Kim Lee to your Favourites.
Spencer Hunt has sinced written about articles on various topics from Other Conditions, Green Tea and Alternative Medicine. Published by author Spencer H. The Lane Real Estate Team services http://www.joelane.com/real-estate-tri-city-wa.php?>Tri City Wa Real Estate. Spencer Hunt's top article generates over 27100 views. Bookmark Spencer Hunt to your Favourites.
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