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Buying Investment Property
There are some obvious reasons that investing in real estate is a great idea. Have you heard the old adage, "buy low, sell high." Well, we know the market is pretty much at the bottom, so there is no better time for you to contact your investors and stress to them that now is the time to "buy low." So many home buyers and investors are still sitting on the sidelines waiting for the market to "hit bottom." Little do they realize that as soon as they think it has hit bottom, it will already be on its way up. To illustrate, picture a bounced ball. It stays on the ground for mere seconds before it starts its bounce up again. And so it is with the real estate market. There is an abundance of inventory available. Short sales, foreclosures, and distressed Sellers create a market that is just crying for investors. With so many homes available for sale, Buyers can make offers without emotion and simply move on to the next property if the first offer is not accepted. Interest rates are low. With good credit, mortgage money is available. If you're interested in working with investors, then you need to begin to learn about buying and selling investment property. Start talking to people you know who have bought investment property in the past. Ask them how they made the decision to buy that particular property. Invest in your education and take a CCIM course. I believe there is an add-on to Microsoft's Excel program called Landlord Cash Flow Analyzer. You may want to purchase this software and try it out on several properties. Learn the talk. Keep a real estate dictionary nearby so you have a quick reference guide for such terms as annual property operating data (APOD), internal rate of return (IRR), cap rate, return on investment (ROI). When your investors see your analysis, they have a far better understanding of what a property is really worth and how increases in rent, vacancy factors, and standard maintenance can affect their investment. So what are you waiting for? Begin to prospect for your investors and for the property they might want to buy. There's no better time than now. See you next week!
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©2010 Sussex County Association of REALTORS®
23407 Park Ave., Georgetown, DE 19947, USA (302) 855-2300 - fax: (302) 855-2319 - info@scaor.com Last Modified 19 February 2009. |