|
|
|
|
| Buying Real Estate for the First Time |
Buying a house for the first time can test the nerves, it is
exciting and overwhelming. You hear all the time about rising
home prices and how buying a home is a good investment.
Purchasing Real Estate is a good investment but you need to keep
in mind that there are risks involved. I have listed in this
article some suggestions to minimize your risk and to profit
from your investment.
The first thing you must do before investing in a home is to do
your due diligence. You don't need to be a Real Estate guru, a
financial expert, or a lawyer but you do need to gather
information and take a realistic look at your own financial
situation before investing in a home. Buying and selling Real
Estate is a process and it is not as simple as buying a new car.
Get to know the Real Estate Market you are interested in and
find out what homes are going for. Research the market by
talking to realtors, and people in the community. Gathering
information from the internet is another great way to research a
market. |
Educate yourself about the home buying process. Learn a little
bit about contracts, escrow, title insurance, closing costs and
what each individual (realtor, broker, and lawyer) plays in the
process. Shop around and see what each has to offer.
Ok, you are ready to dive in and take the next step. First you
need to find a potentially profitable property. This is where
the internet comes in to play. The internet is a great tool for
finding properties quickly but you will still need to drive
around and get a first hand look for yourself what the area is
like. Check out FSBO's (for sale by owner) and the local
newspaper or penny saver. Ask you realtor for a list of
comparable sales in the area and make a list of those
properties. Take the sales prices and divide them by the square
footage this will give you a gauge of the fair market value for
properties in the area.
Take a look at other properties in the area and see if they are
well maintained. Even if you buy a handyman's special and turn
it into a |
|
|
palace, it still can be hard sell if the neighborhood
id less than desirable.
Once you've found your golden nugget, unless you are Bill Gates
or have hit the jackpot, you'll need to finance the purchase.
Here is a tip! Have your financing in place BEFORE looking for a
property.
Talk to mortgage lenders, banks, and lending institutions.
Again, the internet can make this process easier. Here is a
lender I recommended http://www.heritagemortgagesolution.com.
Have discussions with your broker and let them know what you
want to invest and most importantly ask questions. They will
check your credit to make sure it is clean of any negative
marks.
Find out about the different lending programs that are
available. There are a variety of different ways to fund Real
Estate with variations in rates, monies that are required up
front, and tax consequences. This is a big investment with
possibly a large out of pocket expense and a huge |
liability
(mortgage). So be smart and be prepared.
Now you are ready to buy. The seller wants as much as possible,
and you want to pay as little as possible. So you want to
negotiate the best price possible. Stand fast but be prepared to
compromise. You'll need to give a little to get a little. Come
to a mutual agreement where it is a win-win situation for
everyone.
Everyone has a first time, so stay calm and have fun it's an
adventure!
http://www.heritagemortgagesolution.com
http://real-estate-investing-resource.com
About the author:
Timothy Collins is the owner of
www.heritagemortgagesolution.com. An independent marketing
consultant. Our Lenders offer a full range of Residential and
Commercial mortgage products. Our team of experts have the
experience, knowledge and expertise to handle even the most
complicated mortgage situations.
|
|
|
|
