Real Estate Investment
Real estate investment can be very lucrative; it can be a great way to add to your retirement account, your children's college fund or any other financial goal you are trying to reach.
Many people have been scared away from investing in real estate since the housing bubble burst around 2008. There's no reason not to invest in real estate, especially now when prices are so low. There is a big difference between speculating, which was going on when the housing market collapsed, and true real estate investment. When you invest you are following that old tried and true formula; buy low, sell high and keep your inventory moving. Speculation is buying property and hanging on to it until you can get the highest price possible-which is often years down the road!
First you have to find suitable properties that you know you can sell. These might be abandoned houses that have been damaged or foreclosed upon. They might belong to a family who is having a distress sale to avoid home foreclosure or a house that has been on the market for awhile and has not sold.
One way to find properties for real estate investment is turn to your local newspaper's legal section. You can find foreclosure notices, auction listings and names of heirs and attorneys who might want to sell residential property. In another section you'll find all the garage sales that are coming up. Did you know that about 20% of people that have yard or garage sales are planning to move soon? One or more of those people might be interested in selling their house.
When you see a vacant house, talk to the neighbors to find out who owns it and perhaps why it is vacant. If the owner lives out of state-perhaps they had to move in the course of their employment-you can find their contact information in the county's property records.
While you're at it, establish relationships with your local lenders. Let them know that you are looking for property and are willing to pay a fair price. You'll begin getting calls from them when they have a foreclosure in progress or clients that are desperate to sell their houses. Pre-qualify for a mortgage so that the lenders know they can sell property to you quickly and easily. You’d be surprised how many bargains you can pick up that way!
Auctions are another good way to find property at rock bottom prices. If the auction is held in bad weather it will be sparsely attended and you can get even better deals. At auctions you can get houses that have been foreclosed, sold for taxes or HUD and VA properties.
It's also helpful to work with real estate agents, who often have listings that just aren't moving. In such cases they are usually willing to accept less than their normal commission.
Most of the property you acquire for real estate investment will need some work so be prepared. If you're handy you can do most of it yourself but you can also make arrangements with local service businesses. They will often work at bargain prices since you are a client they can count on for more jobs.
You can achieve your financial goals or even make a good living in real estate investment. All it takes is a little investigative work, some common sense and perseverance.