Real estate investment is one of the many complex decisions in life that one has to make. It involves a lot of intricate details that have to be taken care of. A lot of thought and consideration must be given to the subject to increase the chances of making a good decision. Below are some things that you should know before investing in real estate.
Know your Needs
Before starting to look for a real estate property, you need to first know your needs. You should take into consideration your family size before deciding how big a house you want. Also, determine if you would like a house built on flat land or sloped terrain.
You also have to take into account the location of the house. This may include the distance of the house from your workplace and the presence of other amenities in your area like a school, a hospital, a superstore, a park, etc. All these are important facilities which, if near your home, will be very beneficial for you and your family.
You can determine your needs by asking yourself different questions and making a checklist to ensure that the majority of your needs are being met.
Determine Your Budget Limit
You have to set a specific budget before you start looking for real estate properties. It is no use wasting time in surveying properties that lie out of your budget. Do prior research and make a list of areas that you prefer to live in. Then based on your budget, you can narrow this list down.
Check with mortgage experts and see if you can afford the mortgage payments of the property you are willing to buy. If the expenses fit well in your budget, you can go ahead with your purchase decision.
Know the Right Value
To know the right and fair value of your property, carry out an independent valuation to know if the asking price is fair and close to the market value. Visit the property yourself and check for details such as the plumbing system. If you come across any damages that need repair, you can negotiate with the current owner of the property.
Either you can ask them to bring down the price a little or complete the repairs and then transfer the ownership of the house to you.
Finalize the Deal
When signing the agreement and transferring the deed, you need to be knowledgeable enough to understand all the minor details mentioned in the document. It is better to hire a lawyer to help you with the procedure as he/she, being an expert, will be able to guide you better. The lawyer will explain to you all the clauses mentioned on the document and will also offer sound advice while you are finalizing your deal.
Business Credit and Real Estate Investing
If you are looking for your business to start investing in real estate, it can be worth establishing a strong level of business credit to enable you to make the most of your investments and capitalize on the opportunities that are afforded you. Once you have established a strong business credit portfolio, you can use many tools such as deal flow software to assist you in your investment decisions. You could even demonstrate your use of deal flow software to help you in gaining business credit for use in investments, as this will show lenders that you use everything at your disposal to take advantage of only the very best investment propositions.
It is important to understand that business credit differs greatly from personal credit. Many business owners do not realize this can end up negatively impacting both their personal and business credit. Ensure firstly that you are registered with a business credit bureau, as this will allow you to effectively build your levels of business credit and enable you to assist with your real estate investments.
Building Business Credit
Ensure you register your business as an LLC, as being registered as a sole businessman or in a partnership is more likely to see your personal credit score impact directly on your business’ ability to gain credit. Under these circumstances, you are more likely to attain credit under your business’ name, without a personal credit check being carried out on yourself.
Take the time to fully understand the business credit market so that you can best use it to your advantage. As well as creating more favorable borrowing conditions for yourself, many organizations will even penalize you for not being compliant with credit market regulations. It is easy to look up business credit market requirements online.
Ask businesses who are willing to issue you with credit to report this to the business credit bureau. In doing this, your business credit profile will be boosted and allow you to attain further credit in the future if necessary, providing of course that you meet your repayment obligations.
Getting Real In Real Estate
Having established your business credit level you can then begin investing in real estate. With an excellent deal flow software, you will be assisted in taking on the very best investments and be almost assured of an equitable return at all times. Real estate investment continues to be an attractive business, begin taking advantage now.
Condominium Amenities for Higher Return on Investment
Investing in a condominium property is an excellent financial vehicle for increasing personal net worth if you choose the right location and consider the tenants. Today’s large-scale investors find lucrative opportunities in urban redevelopment projects, such as Chicago’s 1225 Old Town Highrise.
Complex rental rates draw the second-highest net rental income per square foot in Chicago, and the property also holds the distinction of having the highest sales price per square foot in Chicago’s history, according to Curbed Market Watch. Property owners should consider the amenities and built-in benefits for renters to stay competitive in the investment arena of condominiums.
Management companies are telling clients to adjust marketing strategies in response to emerging demands from today’s metropolitan tenants. While 24-hour gyms and temperature-controlled parking still attract qualified tenants, there’s a developing penchant for mixed-use buildings that combine high-rise living spaces with healthy, organic food stores, according to Forbes.
Inner-city neighborhoods are seeing dramatic surges in urban revitalization as retailers and developers team up to meet the growing demand for living spaces in metropolitan areas. A one-bedroom luxury apartment in Chicago’s Old Town development with all the “bells and whistles” and a long list of other amenities beyond the first-floor market rents for $2,725 monthly, according to Luxury Living Chicago Realty.
Another city building with jaw-dropping amenities and luxuries to draw tenants in Manhattan’s 455 Central Park West. The duplex building features an on-location grocery, children’s playroom, extra storage, and a myriad of other modern conveniences. Bi-level designs boast four bedrooms and six baths and have a 1,110-square foot living/dining area with 37-foot cathedral ceilings, according to Manhattan Scout. Selling prices for two-bedroom units start at just under $3 million.
Trending on a Smaller Scale
Although these partnerships that merge living spaces and retail markets are in considerable demand, not every property owner can afford to build a multi-story housing unit above a full-service grocery store. Full-scale apartments aren’t necessary, according to a real estate professional in Chicago. The agent points out there are 12 complexes in downtown Chicago that have some type of food outlet built on the property, ranging from ice cream parlors to pizza places.
Amenities for Condominium Properties
Investing in the inner-city revitalization projects supports the economy and the environment. Investing in multi-tenant properties that meet consumer demands for more convenience offers investors a healthy return on investment. However, investors that opt to purchase smaller properties can also increase return on investment by concentrating on updating in-house amenities for tenants.
Incorporating outdoor spaces for hiking, biking, golfing, and picnicking increases the resale value as much as 14 times over the initial construction cost of these amenities, according to the National Trails Training Partnership.
Tenants are looking for convenience, safety, and access to transportation. The following list of amenities will draw tenants to every property, regardless of the size.
In addition to amenities on the property, tenants value peripheral services such as discounts for dry cleaning, a paid-with-lease membership at a nearby gym, or leasing options that include a Direct TV deal.
Consult a Real Estate Specialist
Consumers are looking to find new ways to invest 401K savings. Market analysts often recommend caution when investing in new trends, but the condominium market bears some further investigation.
Consider the facts: The population is growing. Available space for new building homes, apartments, and condos are becoming scarcer daily. Building up, rather than out, in metropolitan areas appears to be the only way to add more living spaces. Tenants want to live close to shopping and dining establishments, grocery stores and work — having it all under one roof satisfies all those desires.