Real Estate Investing

Real Estate Investing

Real Estate Investing for New Real Estate Investors

Are you thinking about becoming a real estate investor? If so, by preparing yourself with the knowledge about real estate investing, the strategies and tactics involved in real estate investing, while growing your network of contacts within this industry will all contribute to how much success you will have with real estate investing. As with all investments, conduct your due diligence on your real estate investing deals thoroughly before making any final decisions. If you do not conduct the proper research or due diligence on a property you are about to buy, you may end up with buying a piece of property with tainted soil that needs special environmental attention that requires substantial amounts of money immediately after purchasing it.

Real Estate Flipping or Flipping Real Estate

Have you ever heard of flipping real estate? This type of real estate investing involves purchasing properties for a very low price in hopes of repairing the homes and reselling them for a substantial profit. Real estate investing for flipping properties is sometimes more risky than the other types of real estate investing.

The reasons why flipping real estate is so risky compared to other types of real estate investments are as follow:
– You are usually buying a property that needs work, unfortunately you do not always get a chance to properly evaluate an investment before bidding on or purchasing it.
 -You never know what you will find in terms of more damage and repairs needed to a property until you get started repairing it. This can sometimes make or break a real estate investing flipping deal.
- Budgeting Cost of Repairs- When you do decide to purchase a piece of real estate for flipping purposes, always allowing for over budgeting of costs of repairs. The goal of a real estate flip is to quickly purchase, repair, and re-sell the property for an almost immediate profit.
- Building Permits and Paperwork- Before any type of repairs can commence on a piece of property, you must go and file for paperwork, have blueprints drawn up sometimes, and apply for the building permits. Depending on your state laws, most people looking to update, repair, and / or modify their existing properties must obtain a building permit.

Other Tips for Real Estate Investing 

Rent to Own Homes-

Titles and Title searches-
Before purchasing any type of real estate investment property, one must first have a title search and deed search conducted before the purchase can be finalized. The title and deed searches help a prospective buyer to understand the history of the property while uncovering any hidden surprises from any previous owners. This is all part of a real estate investors processes of conducting due diligence on a property.

Tax Liens-
A tax lien is a basically a way for state and local governments to collect any back owed taxes from property owners that are behind on their taxes. This can sometimes allow for real estate investors to come in and obtain properties cheap by simply purchasing a tax lien certificate on a property with back owed taxes. Tax liens can also pose a problem for real estate investors whom are trying to purchase an investment property.

Foreclosures and Pre foreclosures-
 These types of property deals are sometimes very risky themselves as each properties situation is unique to own circumstances. This is where thorough due diligence and title searches can uncover any possible risks for the potential real estate investor. A foreclosed on or home in pre-foreclosure can sometimes be a great option for real estate investing, always be aware and always conduct thorough research.




Another original article written by - Jay Couture