Friday, July 13, 2012

Inexpensive Investment Property.

While the Fed is keeping interest rates historically low,opportunities abound for the real estate investor. Housing is more affordable  than ever and the prices seem to have only one way to go-up.Bank loan rates are affordable and property prices are low,which is the perfect storm for a savvy investor. Like investing in stocks or bonds,research is critical. You need to decide first if you want to manage your real estate investment , pay a management firm or fix up and sell your real estate quickly.

If you are first-time investor, it is wise to stay with residential real estate and avoid competing with big time commercial property investors.Just plan to start small and work your way up- a first time huge investment can drag you down quickly if you are not able to add additional financing after the initial round.Don't knock yourself out trying to pay off the property upfront, because now you can get an attractive interest rate allowing you to save part of your investment funds for those unexpected costs that always rear their ugly head when you least expect it.Plus,as inflation rises your investment will be a great hedge against rising prices.

Take the time to scout the area.Look for schools nearby shopping centers, grocery stores , quiet neighborhoods. Then look for the bad qualities such as people loitering on corners, trash on the street, disabled autos, burglar bars on most properties and vacant homes or empty buildings.The qualities don't offset each other-if you see any of the bad qualities, drive away quickly.

Lastly, don't try to do everything yourself. Find 5 reputable agents that know that area you want to invest in then meet with each of them,possibly taking a tour of the area, while evaluating their expertise . Tell them your bottom line and don't be convinced otherwise.If anyone tries to tell you that you can afford more than your set budget or that a more expensive deal is too good to pass up, then they are not looking out for your best interests.When you find the right person, you'll know and this just might start a long-term relationship that will make you a truly savvy investor finding the best bargains on the market.


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Bio :
Paul Toller has worked in the real estate market for over 20 years, as an investor,real estate consultant and real estate property management software expert.Paul currently works as a consultant at http://www.TenantFile.com , a firm that specializes in property management software.

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