Buying Real Estate for the First Time

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Buying a house for the first time can test the nerves, it is exciting and overwhelming. You hear all the time about rising home prices and how buying a home is a good investment. Purchasing Real Estate is a good investment but you need to keep in mind that there are risks involved. I have listed in this article some suggestions to minimize your risk and to profit from your investment.

The first thing you must do before investing in a home is to do your due diligence. You don’t need to be a Real Estate guru, a financial expert, or a lawyer but you do need to gather information and take a realistic look at your own financial situation before investing in a home. Buying and selling Real Estate is a process and it is not as simple as buying a new car.

Get to know the Real Estate Market you are interested in and find out what homes are going for. Research the market by talking to realtors, and people in the community. Gathering information from the internet is another great way to research a market.

Educate yourself about the home buying process. Learn a little bit about contracts, escrow, title insurance, closing costs and what each individual (realtor, broker, and lawyer) plays in the process. Shop around and see what each has to offer.

Ok, you are ready to dive in and take the next step. First you need to find a potentially profitable property. This is where the internet comes in to play. The internet is a great tool for finding properties quickly but you will still need to drive around and get a first hand look for yourself what the area is like. Check out FSBO’s (for sale by owner) and the local newspaper or penny saver. Ask you realtor for a list of comparable sales in the area and make a list of those properties. Take the sales prices and divide them by the square footage this will give you a gauge of the fair market value for properties in the area.

Take a look at other properties in the area and see if they are well maintained. Even if you buy a handyman’s special and turn it into a palace, it still can be hard sell if the neighborhood id less than desirable.

Once you’ve found your golden nugget, unless you are Bill Gates or have hit the jackpot, you’ll need to finance the purchase. Here is a tip! Have your financing in place BEFORE looking for a property.

Talk to mortgage lenders, banks, and lending institutions. Again, the internet can make this process easier. Here is a lender I recommended http://www.heritagemortgagesolution.com. Have discussions with your broker and let them know what you want to invest and most importantly ask questions. They will check your credit to make sure it is clean of any negative marks.

Find out about the different lending programs that are available. There are a variety of different ways to fund Real Estate with variations in rates, monies that are required up front, and tax consequences. This is a big investment with possibly a large out of pocket expense and a huge liability (mortgage). So be smart and be prepared.

Now you are ready to buy. The seller wants as much as possible, and you want to pay as little as possible. So you want to negotiate the best price possible. Stand fast but be prepared to compromise. You’ll need to give a little to get a little. Come to a mutual agreement where it is a win-win situation for everyone.

Everyone has a first time, so stay calm and have fun it’s an adventure!

http://www.heritagemortgagesolution.com

http://real-estate-investing-resource.com

About the Author

Timothy Collins is the owner of www.heritagemortgagesolution.com. An independent marketing consultant. Our Lenders offer a full range of Residential and Commercial mortgage products. Our team of experts have the experience, knowledge and expertise to handle even the most complicated mortgage situations.

Real Estate Investment Requires A Team

I had a hard time at first with real estate investment. One of the reasons was that I tended to be a “lone wolf,” trying to do too much myself. I’ve since learned that to really do well investing in real estate, you need to have a team of people you can trust and rely on. Here are some possible team members, and what they need to be on the team.

1. Real estate agent. A licensed agent with experience in the area you invest in and access to the MLS (Multiple Listing Service), can be a great help. If she is a seller’s agent, she can still ethically bring the best deals to you once she knows you’re a serious buyer.

2. Real estate attorney. This should be someone familiar with the laws and legal customs of your area, and have experience with the type of deals you intend to do (If you are buying rentals, she should be familiar with doing evictions, for example.)

3. Accountant or bookkeeper. Keeping proper books for real estate investments is getting more complicated with all the tax-law changes. Find someone that understands the law, and what you want.

4. Mortgage broker or banker. The first can offer many options, but the second can make the loan decision. Each has their advantages, and you could use both. In either case it’s important that they understand what you want (fast closings, lower interest, corporate loans?)

5. Appraiser. Not only can a good appraiser give you an accurate valuation of a property, but they should be able to suggest ways in which you can raise the value of a property. Use someone that will talk to you.

6. Inspector. In some areas it is easy to become an inspector with little experience. It’s best if you use one that is or used to be a contractor, so he can find the problems AND give you some idea of the cost of repairs.

7. Insurance agent. A good one will understand what you want, and find ways to save you money. Insure all your properties with one agent, and you’re likely to have discounts available, and better service.

8. Escrow officer. They will usually be with a closing company. Look for someone that’s efficient, and can explain things clearly to both sides. If he is confused by a slightly creative contract, he should educate easily or be replaced.

9. Cleaning person. Having a trusted person or crew ready means a fast turn around when you buy a rental or rehab project.

10. Property manager. Be sure that the company you hire has exerience, is responsive, and will have time when you call. A good property manager can tell you BEFORE you buy, what you should get for rent in a given area.

Real estate investment is less stressful and more profitable with a good team on your side.

About the author:
Steve Gillman has invested real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com

Off-BaseHousing.com Announces New Redesigned Site for Linking Military Families and Real Estate Professionals, Just in  

Off-BaseHousing.com Announces New Redesigned Site for Linking Military Families and Real Estate Professionals, Just in  
Off-BaseHousing.com provides military real estate services, by linking military families with real estate professionals. There is none other that offer the unique programs to the 1.4 million active duty families. (PRWEB May 30, 2006)

California Real Estate Appraiser Licensee Numbers Hit Record Levels and Continue to Rise 
Office of real estate appraisers encourages use of online license status check resource