Friday, October 31, 2008
You can be a Good Real Estate Investor
When it comes to real estate investing, everyone has some aspirations and goals. To be a good real estate investor one has to follow some guidelines and regulations. Real estate is a great investment that gives good returns, but it will be beneficial to only those who are wise and well planned. To begin with compare the property rents and values. The best way to find a property's market value is finding out the sale prices of properties nearby which are the same for area rents. Always keep in mind that a low price can be justified with a reasonable home rent. Those renters who can pay high rents can afford to buy instead, hence reasonably priced rents are considered to be a need.
Lets take an example, If you are going to buy investment property you need to first present an offer to the seller of that house. This can be done verbally when an agreement is reached and it is recorded into writing. You should know that what you record is called a Purchase and Sale agreement; which is one of the most important documents in our careers as investors.
Purchase and sale agreement that you will need to understand front and back is the one that Real Estate Agents use. It will be great if you can get a copy of a purchase and sale agreement from an agent you know. I will advice that you should read them and understand them. Most of the Realtor contracts do not favor the buyer or the seller. Most of the contract language is about protecting the Realtors. However, each state is different and you need to examine the Realtor contracts for your state.
Trouble might arise when you haven't practiced writing up offers and you do not understand your own contract. But not to worry. What you can do is you practice at home by the time comes you should not have any problems drawing up the contract on the spot in front of the Seller. Trust me it's a good way for you to sign up for my blog announcement list. Download the Purchase and Sale agreement and study it properly, infact learn it, and then practice drawing up offers with it.
You should learn all these things like What are the operating expenses? Vacancy costs? What are loan payments and taxes? How does the cash flow statement look like? These are some of the key issues which must be addressed before you make a solid investment.
For the best option on real estate in the San Jose area please contact Tom Merigan of San Jose Real Estate properties.