| There are countless tips on real estate investing | | | | spent on the investment, compare the rents your |
| available and this is by no means intended as a | | | | prospective investment property takes in against |
| comprehensive list. While every investment has its | | | | similar properties in the area. Are they too high? If |
| own intricacies and problems that need to be worked | | | | so, that may indicate future trouble filling the building |
| out, there are some very basic aspects that are | | | | at those prices, which then cuts into your profit |
| common to most investment properties. | | | | forecast. |
| Understanding those aspects and asking questions | | | | If you are getting involved in a fixer-upper, compare |
| about them can help you determine whether a | | | | what you think the home will be like in the future to |
| particular real estate investment opportunity is for | | | | homes that have sold that look similar to that now. |
| you. | | | | Doing so will help you estimate your eventual sale |
| Anything Can Change | | | | price and the amount of money you should invest to |
| Building in the capacity for change in your investment | | | | net a decent return. |
| is not only good real estate advice, but good life | | | | Hammer Down True Expenses |
| advice. Aspects of an investment can change at any | | | | Just as you want to examine what your incoming |
| given time and building in a little cushion in your profit | | | | cash flow will be on any real estate investment |
| projections for that change will most likely give you a | | | | opportunity, you want to investigate your outgoing |
| better outlook on the possible outcome of your | | | | cash flow as well. What are the key costs involved in |
| investment. | | | | running the property? What are the taxes on the |
| This is especially true for something like the tax | | | | property? How much does it cost you when part of |
| climate of your investment as changes in tax laws | | | | your multi-family property is vacant? Sometimes |
| happen regularly. If the tax situation surrounding your | | | | properties can look great when you examine the rent |
| investment is the only thing you like about it, it is | | | | payments coming in but then lose their luster when |
| probably not a sound investment. Solid investments | | | | you look at the cost of running the facility. You need |
| can withstand changes in the tax code, so never rely | | | | to investigate both sides of the story to get an |
| solely on the stability of tax codes, you will be sorely | | | | accurate view of the financial future of your |
| disappointed. | | | | investment. |
| Do What You Know | | | | Know The Building |
| It is tempting to get involved in real estate | | | | In real estate investing, surprises are usually costly. |
| investment opportunities outside of your comfort | | | | Not only should you do a full walk through of the |
| zone. Maybe the terms look good or the area is nice, | | | | prospective investment yourself, you should also look |
| but your lack of expertise in the field will ultimately | | | | in to hiring an independent, professional inspector as |
| hurt you over the course of the investment. If you | | | | well. Uncovering problems with the foundation, roof |
| are well versed in multi-family homes, do your best | | | | or furnace early can either save you from making a |
| to uncover the best investment opportunities in that | | | | poor investment or give you ammunition to negotiate |
| field. If your bag is fixer-uppers, stick with that. | | | | a lower price. |
| Success is difficult to replicate so if you have a knack | | | | Not all real estate investments are the same and you |
| for something, exploit that knack. | | | | will likely run in to a unique problem on every |
| Compare, Compare, Compare | | | | property you pursue. However, by sticking to the |
| As any real estate agent will tell you, valuations for a | | | | tips here, you can give yourself a great foundation |
| new home put on the market are a direct reflection | | | | from which to operate. Above all, pursue information |
| of other sale prices of similar properties in that area. | | | | on the property as vigorously as possible to eliminate |
| Your potential investment is the same way. If you | | | | the possibility of regretting your investment later. |
| are going to rely on rents to make back the money | | | | |