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Beginner Tips for Buying Investment Property

Beginner Tips for Buying Investment Property

Obviously, buying investment property is one of the surest and fastest ways of accumulating wealth. This probably explains why the property investment business has become such a boom. However, buying the ideal investment property can pose a challenge, especially to the beginners. 

It would be helpful to note that buying investor property is not very different from buying personal property. There are a few factors to consider and with these tips, you can get a good bargain as far as investment property goes.

Tip 1: Do a thorough homework before committing your money

The minute you decide to buy investment property, it is advisable that you first comb through the available options. Start simply by weighing your priorities on terms of what type of investment you need, your budget, the neighborhood of your choice, the expected rent in a particular area and more so, the expected return that you intend to make. Do not be afraid to ask questions concerning the investment property at hand. 

Tip 2: Hatch a work plan and criteria

After step one, map out a work plan and outline your criteria. You can do this by recording all your plans, goals and turn-around time in a personal journal, which makes it easier to refer to your notes often. Do not lose focus or get distracted by anything that is not within your plans. At the end of the day, you need to account for your goals within the stipulated time. 

Tip 3: Work out your budget

The biggest mistake you can make when looking for investment property to buy is shopping for property without a financial plan. If you find an investment property that is beyond your budget, you will put your financial plans in disarray. Talk to your bank manager and work out something that is within your budget. Weigh your options carefully when planning your budget. 

Tip 4: Search for investment property

Once you have your budget in order, you will be in a better position to shop for an investment property that works best with your financial plan. You can search online or on MLS (multiple listing services) locally and weigh your options. With such a wide option on websites and listings on MLS, you can hardly go wrong. If you opt to work with an agent, get one that has knowledge on different investments and has worked with different investors. Such an agent will be in a better position to advise you on what to look for in an investment property as per your criteria. 

Tip 5: Outline your offer

Once you identify ideal investment property, go ahead and make your offer. This is where an agent comes in as he/she will be in a position to sort out the necessary paperwork based on your criteria. Your agent should also be able to handle the negotiations with the selling agent and find a common ground. Usually, a professional agent should be able to give you the best bargain. 

Seller financial concessions, the closing date, financing and inspection contingencies should be discussed alongside the price. This will of course depend on the property’s popularity as well as the dynamics of the deal. If the price and the necessary contents of the offer appeal to you, you will have a ‘Mutual Acceptance’ offer, which is usually followed by your due diligence. 

Beginners need not to find it too hard to start investing in the property market because the way has been paved for them already. Information is power in this industry so start researching.

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