Buying and selling property can be extremely lucrative. It takes capital, effort and the guts to take risks to be successful. Acquiring property is more than buying low and selling high. The property buyer has to determine the potential of a property and have the ability to make that potential work for them. Knowledge in real estate, building, banking, and market research is very important to have in your repertoire.
The first thing to do is to establish your goal by answering the question “why do I want to invest in real estate?” “To make money” is probably your initial answer but if you expand on that a bit your answer will also help to formulate your strategy by establishing not only the why but how it will be accomplished. Once you have a strategy and a plan in place, you will be ready to roll. Part of your plan should be an exit strategy. How will you get out of a deal if it does not go according to plan and how will you unload a piece of property if you do not plan to hold it forever.
Without a plan you will have no direction and will just roll in many directions and end up pretty close to where you started. If you plan to get into serious property acquisition, give some thought to getting your real estate and/or contracting credentials. Anything that adds to your professionalism and credibility will be a plus for you.
Research, Research, Research:
It is essential to be an informed consumer. Do your due diligence and research an area before diving into the deep end of the pool. If possible, visit the local town hall and make stops at the planning and building departments. The folks in those departments will be able to tell you the history of development the past 20 to 30 years, the philosophy of development within the town and what the future looks like. Not everything they will have to say will be positive, but if some of the positive coincides with your plan, you may be in business. If not, move on.
Looking For Property:
The foreclosure market might be a good place to start looking for property. Even in the best of time properties fall to foreclosure and the economy is not always the reason. Through the wonders of the Internet, it is easy to look up properties in the area of your choice. It will be helpful to know the home loan process and how foreclosure works. Buying at a foreclosure auction might pose a higher risk than buying on the open market as their usually is not an opportunity to inspect the interior of the house. But the tradeoff is the purchase price most likely will be lower than market value, depending on what is owed on the house. This is where the “guts to take risks” comes into play. Do not let anyone pressure you into buying a piece of property.
Other than the Internet, there are a number of places to find properties for sale. Real estate guides are often on the counter or the front door of almost any kind of store and restaurant there is. They can also be found at newspaper stands and the publication containers usually found on the sidewalks in busy areas. They list by area a variety of property for sale. Advertise your desire to buy property and let the sellers come to you. No matter how you go about acquiring property, be sure to stick to your plan.