Dean Graziosi

Both property selling prices and interest rates are very low right now. Yet, with the economy suffering, many people are unwilling to take the plunge and purchase a home. That makes it an excellent time to invest in rental properties. A few tips will help you get started.

1. Start by making connections within the real estate investment community.

Get to know other, more experienced investors. If at all possible, find a mentor who will help you understand the processes involved. You can get advice on making the initial real estate deals, arranging financing, rehabbing the property if needed, maintaining the property and dealing with tenants. Insider knowledge of the system can help you be successful.

2. Decide whether you want to buy and sell rental properties or become a landlord.

You can make money either way, if you get good advice and make the right moves. You might be more suited to either type of investing. Think about whether you would want to deal with tenants. Think about whether you are so fond of sales deals that you want to make that your focus. The best thing you can do is to get to know yourself.

3. Get familiar with your financing options.

Talk to a lender or trusted advisor to get a feel for the kind of leverage you can manage with the assets you have. Locate financing to have on standby in case you get the deal you want on short notice. It is better to be prepared than to accept the first financing source that comes up without examining your options.

4. Get to know people in the building and maintenance trades.

If you are going to buy and sell rental properties, you may need to have them fixed up before you can move them. Also, if you are going to become a landlord, you will definitely need people who know construction and maintenance to keep your buildings in good repair. Getting to know essential workers is always a good idea, and making friends in the industry is even better.

5. Start looking for rental properties in good locations.

People naturally gravitate to rentals with good schools, nearby shopping, and safe neighborhoods. Transportation is high on most people’s lists, but the type of transportation people want depends more on the lifestyle of your area. If people use public transportation, they might want to be near bus lines for example. If driving is the major means of conveyance in the area, the key is to find neighborhoods with good roads and easy access to major thoroughfares.

When you have all the people and services lined up to help you succeed, it is time to start seriously considering rental properties if you want to invest in them. If you are prepared for the process ahead of time, you will be ready to move quickly when the right deal comes along.

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Buying a home is one of the most important decisions anyone can make.  That is why many prospective buyers have learned how important having a home inspection done is.  While your dream house may look perfect from the outside, there may be hidden problems that are not noticeable to many homebuyers.  A home inspection done by a certified inspector will help you identify these problems and help you decide if they are too big to be fixed or if there is something structurally wrong that may be hazardous down the road.

Many states require that purchase contract contain a clause that allows the buyer the right to have the home inspected prior to purchase.  It is important that all prospective buyers take advantage of this clause; it was included for your protection and should be utilized.  It is important, however, to be aware of the time limit that is allowed for having an inspection done.  If you schedule your inspection after the date in the contract, you may not receive a refund of your down payment if a problem is found.  Always read the contract thoroughly and beware of any dates and limitations that may cause you to lose out on a refund if a problem is found.

Once you have found a home that you are interested in, you will want to find a certified home inspector to inspect the home.  If you are unsure of where to find an inspector, your realtor may know of some that they have worked with in the past.  Having found an inspector and set a date for inspection you and your realtor will meet the inspector at the home.  This allows you to see and hear firsthand any problems that have been found.  In most cases the inspector will walk you through the house and point out any problems that they have found.  If the inspector finds that the house is in good condition without any major problems, you can then proceed with your purchase.  If the inspector finds any problems, you will want to take them into consideration and decide if you want to go through with the purchase.

The inspection process was designed to prevent prospective buyers from buying homes that are not safe or that will require a lot of time and money to repair.  It is highly recommended that every prospective buyer take advantage of having a home inspection done, after all, a few hundred dollars spent may save you thousands in the long run.  It is worth the time and money to insure that the home you are buying is worth what you are being asked to pay.  Think of it as a way to prevent headaches and heartache once the closing papers have been signed and you have already moved in only to discover that your home is infested with termites that would have been discovered had you only had an inspection done.

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Fannie Mae s one of two government-backed mortgage enterprises responsible for ensuring the liquidity of the mortgage market. The recent economic meltdown resulted in a lot of government bailouts. These bailouts were not just limited to banks but also to the real estate sector; to Fannie Mae and its twin, Freddie Mac. The resulting effect was tighter controls on the institutions leading to even more foreclosures flooding the market. All of a sudden, people who were once considered prime purchasers were not unable to meet the steep conditions set by the institutions and could not qualify for housing loans.

The direct result of this is that even though there are now more foreclosed properties on the market than ever before, there is even less buying going on because getting a housing loan is now a rigorous process for prospective purchasers.

Probably as a result of this and other developments in the real estate sector, Fannie Mae recently released a couple of incentives geared towards homebuyers and realtors. These are financial incentives provided on sales of HomePath properties and run through October. According to a press release by Fannie Mae on June 11, the goal of the incentives is to stabilize neighborhoods and is only available to buyers who intend to purchase as a primary residence.

For homebuyers, the incentives offer up to 3.5 percent of the final sales price to put towards closing costs. Realtors representing the owner occupant buyer get to receive a $1,200 bonus on the sale. These are for HomePath properties and for buyers who intend to live in the purchased property as a primary residence. Besides these, there are also some other conditions which must be met in order to qualify for these incentives.

Conditions

One of the conditions is that the buyer or the agent representing the buyer needs to request the incentive upon submission of the initial offer.

The initial offer needs to be submitted on or before June 14, 2011 and any offers made before that do not qualify for the incentives.

Also, the deadline for the incentives is October 31, 2011 and it is absolutely mandatory that the sale close before that date as there would be no extensions to that deadline.

Sales made by pool or auction will not be eligible for the June 14, 2011 to October 31, 2011 incentives.

Any property that was acquired by Fannie Mae in connection to a financing under a reverse mortgage is not eligible for this incentive.

In order to qualify, a buyer has to sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum.

These are the main conditions although there are a few more which are available on the website, homepath.com.

It is important to note that Fannie Mae also has a lot of other incentives available for homebuyers which can be found on the Homepath.com website.

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