Looking to start investing in Real Estate? Read this guide that is full of information to help the beginning novice learn how to begin mastering the real estate market. From renting, to selling, to buying my goal is to help educate as much as possible.
For this installment, we are going to get right down to the nitty gritty business of determining exactly what property is the best for investment purposes. As I am sure, you know there are several types of property. One type is vacant lots; these are pieces of property that have nothing but a few trees, some grass and probably a few insects on them. There are no buildings of anything else on them that can give the potential to generate a cash flow each month.
Another type of property is commercial property; commercial property sums up anything and everything that has to do with businesses, and is zoned as such with your county. This can be something ranging from a bank, to a tattoo shop, to even the grocery store down the road. The types of commercial property range greatly from a parking lot, to a 100-floor building to almost anything in-between.
Next, we have residential property; this includes several subclasses of property. Residential property is any property in which it is zoned and fit for habitation, meaning people live there. The subclasses of residential property include single-family homes, apartment buildings, and multi-family homes such as townhouses, and duplexes. While single-family homes are more common and can be purchased cheaper, there are some great deals floating around the real estate market for multi-family housing units. The costs for multi-family units must be carefully weighted, especially since they typically cost so much more than the average single family home.
The final property type that we will look at is called distressed properties. These are often the best place to invest money. They are pieces of property that have been neglected, and therefore need some serious TLC to help restore the property to the grander and honor that it deserves. Yet they are a gold-mind. At the hands of the right investor, distressed properties can have an incredible return rate on the investment. Consider for example, if you purchase a distressed home for $10,000, then put in another $10,000 in repairs, however you are now able to rent the home for $500 a month, it is only a matter of a few very short years before you have your money back out of the house entirely. This is something that many property owners pray for the opportunity to be able to do. However, single-family housing is not the only type of housing that can be distressed, multi-family units as well as commercial property can also be distressed. Less often vacant property can even be distressed, especially if the owner does not have the time to maintain the grass and the property becomes overgrown and the city starts complaining about its appearance.
As you are looking at property, you will begin to notice a price scale. This scale ranges starting at inexpensive, then progresses to moderately expensive, then expensive, and finally ultra-expensive. Most of the properties that will give you the best return on your money will be in the inexpensive to moderately expensive range. To determine the exact range for your area will involve a bit of research into current market value, as well as recent sale prices of other property in the same neighborhoods in which you are scouting.
As you have learned in this installment, the best option for investment is the lower price ranges of property. You want to keep your investment expenses low so that you can make as much money as possible, after all without making money you are not a very successful investor. Now that you know the best types of property, as well as the price scale you should be looking at, you now need to spend the time doing research in your area for the specific price scale you should be looking at, as well as starting to call some sellers in your area so you can gain valuable telephone experience.
For this installment, we are going to get right down to the nitty gritty business of determining exactly what property is the best for investment purposes. As I am sure, you know there are several types of property. One type is vacant lots; these are pieces of property that have nothing but a few trees, some grass and probably a few insects on them. There are no buildings of anything else on them that can give the potential to generate a cash flow each month.
Another type of property is commercial property; commercial property sums up anything and everything that has to do with businesses, and is zoned as such with your county. This can be something ranging from a bank, to a tattoo shop, to even the grocery store down the road. The types of commercial property range greatly from a parking lot, to a 100-floor building to almost anything in-between.
Next, we have residential property; this includes several subclasses of property. Residential property is any property in which it is zoned and fit for habitation, meaning people live there. The subclasses of residential property include single-family homes, apartment buildings, and multi-family homes such as townhouses, and duplexes. While single-family homes are more common and can be purchased cheaper, there are some great deals floating around the real estate market for multi-family housing units. The costs for multi-family units must be carefully weighted, especially since they typically cost so much more than the average single family home.
The final property type that we will look at is called distressed properties. These are often the best place to invest money. They are pieces of property that have been neglected, and therefore need some serious TLC to help restore the property to the grander and honor that it deserves. Yet they are a gold-mind. At the hands of the right investor, distressed properties can have an incredible return rate on the investment. Consider for example, if you purchase a distressed home for $10,000, then put in another $10,000 in repairs, however you are now able to rent the home for $500 a month, it is only a matter of a few very short years before you have your money back out of the house entirely. This is something that many property owners pray for the opportunity to be able to do. However, single-family housing is not the only type of housing that can be distressed, multi-family units as well as commercial property can also be distressed. Less often vacant property can even be distressed, especially if the owner does not have the time to maintain the grass and the property becomes overgrown and the city starts complaining about its appearance.
As you are looking at property, you will begin to notice a price scale. This scale ranges starting at inexpensive, then progresses to moderately expensive, then expensive, and finally ultra-expensive. Most of the properties that will give you the best return on your money will be in the inexpensive to moderately expensive range. To determine the exact range for your area will involve a bit of research into current market value, as well as recent sale prices of other property in the same neighborhoods in which you are scouting.
As you have learned in this installment, the best option for investment is the lower price ranges of property. You want to keep your investment expenses low so that you can make as much money as possible, after all without making money you are not a very successful investor. Now that you know the best types of property, as well as the price scale you should be looking at, you now need to spend the time doing research in your area for the specific price scale you should be looking at, as well as starting to call some sellers in your area so you can gain valuable telephone experience.
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