Looking for Your Next Investment Property?
Investment property is not easy to find. When you are on the hunt for investment properties, here are some tips to help you find the right one:
Check Your Credit Report and Budget
When buying an investment property, the biggest mistakes you can make are not checking your credit report and/or purchasing a property that is not within your budget. The better your score, the larger your loan will be. Lenders use it as one of the factors, along with income and current financial obligations, as they determine how much of a house payment you can afford to make.
Many mortgages have down payment requirements, so be sure to check what you have saved for a down payment before you start looking. However, if you have bad credit, it can mean higher interest rate payments. You must check up on your credit before applying for a mortgage loan so that you have all of the information necessary to stay informed about your next steps concerning financing. However, that’s where our team here at the AHL Hard Money Network can help with hard money loans in Florida.
Research, research, research!
The perfect home — it’s what we’ve all been dreaming about for years, and it’s finally happening. But what if you could get a better deal? Would you still buy the home you want? Would you opt to get a little less house and get a better interest rate? Or would you stick to your guns and get the home of your dreams?
Sites like Zillow can give you a bird’s eye view of what’s available in your desired area, with great graphics of the area. If you’re looking at a new home in a particular area, you can effortlessly search for similar homes and compare specifications and costs. You can even look at the homes that sold and determine how much they sold for — information that can help you negotiate with the seller.
A new home is a considerable investment — and while you want to be excited about your new home, you also want to be sure that you’re making the right choice. The best way to make sure that you’re making the right choice is to do some research. Zillow is a great place to start.
Check Out the Numbers and Location
If you consider buying a multi-unit property, you might want to run the numbers on the taxes. Some people who want to save money choose to invest in a second home, which is another option to consider.
Real estate turns out to be just as much art as science. Many variables are involved, such as commodity pricing, taxes, property fees, and regulation or municipal zoning issues. Real estate also has an element of luck involved – location selection is critical because it will drive traffic to your property. Investors who place their properties in high-traffic areas will always yield higher profits than those who don’t.
If you’re new to the real estate/rental market, making decisions based on emotion is common. It is understood understand that there are times when people want to feel good about their choices. They believe one way of living their lives is better than another based entirely upon other people – and we also appreciate how “social norm” has an enormous influence over us (especially as younger people trying to figure out the world).
An Investment Property is an Investment
When we’re investing in property, we typically try to look for properties that will help maintain and increase the worth of our portfolio. That’s because we want to be able to sell these houses five or so years down the road and get a return on our investment. We may want to convert units into condos, thereby increasing rental income and returns or even deciding on an alternate plan such as using it as a primary residence or something even more creative like turning this place into a showpiece retail store.
When you’re ready to purchase your next investment property, reach out the AHL Hard Money Network! We are here to work with you to get the money you need. Fill out the form on this page to get started or give us a call today at 813-516-5210.