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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Everyone wants to get the best deal possible on their house, but in a buyers market it can be difficult to know when to stand your ground and when to give in. Especially if your house has been on the market for a long time, it can be tempting to take any offer that is put on the table. However, you don’t want to give too much, or you will come out of the deal smelling like a rotten egg instead of roses. Take these tips into consideration when examining and negotiating real estate deals in a buyers market.

1.      Be willing to give on the little things. If you were planning on taking your appliances with you or selling them separately and the buyer wants to keep them in as part of the deal, go with it. Appliances don’t cost enough to make it worth arguing over, and it certainly should not be a deal breaker.

2.      Be willing to give a little on the asking price. Your asking price is just that, a starting point that you are asking for. It should not be set in stone. If someone makes an offer within five thousand dollars of your asking price, take it. Even within ten thousand can be a good deal if your house has been sitting for a long time.

3.      Be willing to work with the buyer on down payment and closing costs. You can get a much better offer in many cases if you stick to your asking price but make a “seller’s contribution” to the down payment and agree pay the closing costs. This way the buyer has to give up less money to get into the property, which makes them more likely to buy from you.

4.      If your house has been sitting vacant for a long time, you will have a harder time selling it if you don’t budge in negotiations. The longer a house sits, the less it is worth. This is what makes today a buyers market in the first place. Keep in mind this fact, and be willing to give in on negotiations when necessary to get the house sold.

5.      Don’t think you have to give in on everything. If someone wants to pay ten grand less than your asking price, have all appliances included, go with a lower down payment and still have you pay the closing costs, they are going too far. While you should be willing to be flexible, don’t let buyers walk all over you either. Other wise you will find quickly that you have made a deal that leaves you in the hole, all in the name of selling quickly.

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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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