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5 Things You Ought Know About Rental Property Investment

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There continue to be lenders, even today, making conventional commercial loans. What you should look...

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5 Things You Ought Know About Rental Property Investment

  1. 1. 5 Things You Ought Know About Rental Property Investment There continue to be lenders, even today, making conventional commercial loans. What you should look for is for the booms which are going to occur or have just began. And then it sells these properties to individual investors. Real estate investing is tough at the best of times. What about the worst of times. Is it possible to invest profitably in real estate when the market is like it is right now? After you've closed a couple of REO sales, it's time to broaden your horizons a little. This is when you can start buying bigger "pools" of property at a time. You have to time it right to get the best deal. You know how people say that to get the best deal on a car you should go toward the end of the month when the sales people are all trying to meet their quotas? It's similar with banks when a quarter is coming to an end. What is your track record? Past performance doesn't always indicate future success but how this question is answered can tell you a lot about someone. We've earned one of our partners over 700% return on his investment in six years. We also earned the same partner 110% on another investment in five years. I rarely mention either of these examples to prospective partners because I don't want to set expectations that high when much of that return was thanks to a rapidly increasing market. Instead, I will tell them that there are no guarantees in anything, let alone real estate investment estate but because of x, y and z I feel pretty comfortable suggesting a 15% - 20% return on most of the investments we do. Another thing that you will want to do is to go for a drive around the territory. You want to know it like the back of your hand. You want to take notes of the properties that are up for sale, and the ones that are looking neglected. When you see an open house, go into the house and take a look around. If there is not an open house at that moment, give a call to the http://money.howstuffworks.com/personal-finance/financial-planning/10-unusual-investments.htm agent and make an appointment to take a look at the house. Of course it's a little more complicated than this, but not much. Leverage is a wonderful tool to use in investing today. Look into it, it could go a long way toward making up for your losses.
  2. 2. It's the number one reason that real estate investments fail. The concealed treasure: A really real estate investment trusts old ( and foul ) looking house may shock off consumers. I am not saying that high volume REO bargains don't go down.

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