Finding the right investment properties is a process, and it can be challenging. You need more than just the local listings from an MLS service or searching “Waikiki real estate for sale Honolulu HI” to find great investments. These are tips for investing in real estate.
Determine Your Goals
Why are you interested in real estate investment? What are your income and asset goals?
If you are considering purchasing rental properties, you should determine whether you want to be a landlord. Do you have the skills or connections necessary to quickly repair or replace things in your rental properties? If not, you may consider hiring a property manager.
If you are considering a quicker investment return, such as subdivision, you need to determine your desired process. For example, will you just subdivide and sell empty land, or do you plan to build homes or businesses on the land and then sell them? Will you rent business space? Find out what you need to learn, such as zoning, to be successful in this process.
Contact Real Estate Agents
Local agents look at the MLS services, but they have other avenues for finding properties. For example, a new property may be listed but not showing in the MLS yet. In addition, listings are removed after a specified period of time, but your agent should still know about these listings. Real estate agents may also know individuals in the area who are interested in selling but haven’t yet listed their properties.
To gain great financing, you should pay down your personal debt. If you have a lot of outstanding debt, take time to pay it off. You will get a much better mortgage rate because your credit will improve significantly.
You are also required to provide a 20% downpayment for investment property. You may finance this through a personal loan, but this may affect your mortgage rate.
If you are interested in real estate investments, contact a local real estate agent.