When it comes to buying houses, there are two ways to go. You can either purchase a home for you and your family to live in for years to come, or you can invest in real estate. Real estate investing is more than simply buying a piece of property. Theres a great deal that goes into it. If youre not careful, you can wind up paying far more than you should for something youll never make money off of. How can you avoid that?
What Is The Market Value Of Real Estate In Your Area There are a few things to do. First and foremost, get a really good idea for what the local market value of properties is in the area. See if you can look up the value of other pieces of property, both lived in and not. That will give you a good idea if the piece of property being offered is being priced on par with the other properties in the area. When Flipping Homes Know Your Repair Costs Many people purchase properties that are run down, with the idea of repairing them and selling them for a higher price. Thats a great idea! If youre going to do that, however, make sure you know how much the cost of repair is going to be. It does no good if you wind up paying more for repairs than youll make back in profit. Do Your Research On Location, Market Value, Repair Cost, Carrying Cost, and Selling Cost Ultimately, real estate investing comes down to simple research. Make sure you know the cost of things before you do them. Not every piece of property is a great investment. You have to look at not just the condition of the property, but also the location of the property and the cost of actually selling the property. All of these things are important, so they should all be kept in mind if youre going to try your hand at real estate investing. Look To Experts For Basic Education Before Starting If you are new at this or have been in the flipping houses business for a while, it is always good to keep yourself educated on the basics and new trends. There are many so called Gurus but one of the proven best is Dean Graziosi. Dean has become a multi-millionaire from real estate investing and knows his stuff. He is a New York Times best-selling author and one of his top books is Be A Real Estate Millionaire. Dean continually is putting out new material in blog posts, publications on sites such as Huffington Post, his YouTube Channel and Deans Facebook page where he is always sharing words of encouragement and wisdom. Going along with the real estate investing 101 below are excerpts from a post of Deans that follows this theme Oldies but Goodies in the Fix & Flip Market by Dean Graziosi Fix & flip as a real estate investment strategy has been really good to many of us for a long time. In rising or falling markets, weve had a great run, and were still seeing a lot of opportunity in todays markets. Flip Profits are Up RealtyTrac released a Q3 2014 report showing 26,947 flips, 4% of the total single family home sales and down from 4.6% the previous quarter If prices are rising for the fix & flip investor on the buy side, but profits are rising as well, then they must be getting higher resale prices and/or getting a better profit on their rehab work. This is the situation were finding in some older homes in established and desirable neighborhoods.. Bathrooms and converting to larger closets are also cost effective rehab projects. Get an education walking through brand new spec homes to see what buyers want, as builders are constantly adapting to the market. The cost-to-value ratio for renovation projects has reversed a long period of decline. For the second consecutive year, the value compared to cost for rehab projects has increased for all 35 projects tracked at one remodeling site Original Source of this article http://www.huffingtonpost.com/dean-graziosi/oldies-but-goodies-in-the_b_6347658.html where you can review the complete post. Dean points out that in flipping 101 there are 3 process phases which you need Fix & flip profits come from three process phases, the purchase, the rehab, and the sale. Work with these 3 processes to maximize your return. http://www.realestatebysuzannecroce.com/investing-in-real-estate-101/
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