When looking for investments many people will look in a wide range of different directions. Some will look into stocks and bonds, others will go into buying and selling items online. Others will look into money options such as Bitcoin and Day trading. For the real investors, for those that really want to have a stable income looking into real estate has always been a viable option.
The basics of real estate
When investing in real estate many people in the past found themselves in trouble. Mainly because the banks forecasted and predicted the market would work in one way and it actually in the opposite direction. This turned many away for real estate but the core foundation has never changed.
When looking at real estate we have two basic components. The first component is the land. Land is something that they are not making any more of. Finding land that can be developed on is going to become harder and harder. This is why grabbing some land or a building on land is a wise investment.
The second component is the building. When we have a building on a piece of land we have the power to rent the building or use it for our own purposes. Either way, we have a possible source of income coming to us.
Finding the best deal
Finding the best deal will take time and it will take skill. Looking at bank owned properties for sale is a good place to start. With these real estate options the bank has taken the property back from people for failure to pay on a loan. As a result the banks now have a property that isn’t making them any money. In order to start generating income again or recoup form their loss they will be willing to sell you the property at a discounted rate or for the price owed on the original loan. Talking with your bank rep on the specific options for your property in question but typically getting paid back is the banks main goal.
Determining the property value
When finding a property that you are interested in it will be up to you to negotiate with the bank. Determining the value, come to the table with your research and more will help you get great deals. Here are a few questions to ask.
· When was the last home inspection done and what did they find?
· What upgrades and repairs were done to the property?
· What other liens or tax issues are there with the property?
Asking these and other questions will help you to negotiate with the bank. You may also be able to get better interest rates on your deals if you establish good working relationships and friendships with people at the bank.
When it comes to purchasing properties, getting into real estate and starting a business buying and flipping properties you want to take charge. You want to start small and don’t over extend yourself. The goal is to have your money working for you and not you for your money.