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In its history, Los Angeles has experienced several cycles of growth
and decline. In downturn periods, property was exchanged from weak
to strong hands. There have been enormous rewards for those who bought
property when prices were low, and who held long enough for the next
growth cycle. The outlook for the future requires one to consider
the present economic and social restructuring as well as knowledge
of past economic shifts.
What makes Real Estate investing so unique is the principle of leverage,
appreciation and as well tax benefits. When used properly, these three
tools are unbeatable. What you want to learn is how to take advantage
of these tools and to truly understand the art of real estate investing.
Leverage in Real Estate is the ability to multiply your money by using someone
else’s money. This is where financing comes into play. Most agents
would say that location, location, location is the number 1 consideration
in a real estate purchase. I partially agree. I support that it is one of
the most important factors, but it comes second to having a budget and finance
in place.
| SOME PROVEN RULES TO FOLLOW WHEN INVESTING
IN RESIDENTIAL PROPERTY |
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Buy low, that old house in the great neighborhood is potentially a
great investment. Motivated sellers are the key to finding yourself a great
deal.
Offer incentives such as a short escrow period to obtain a better deal.
Make sure the market in the area has a strong foundation.
Be certain about what your mortgage payments will be, and don’t forget
to factor in taxes and insurance.
Be sure to obtain a rental market analysis of your neighborhood.
Find out the historic values of the neighborhood? Schools? Business in the
area?
Be sure to obtain a list of comparable sales and active listings in the
area.
Always make sure you are dealing with a MOTIVATED SELLER.
| SOME PROVEN RULES TO FOLLOW WHEN INVESTING
IN INCOME PROPERTY |
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As a buyer of income property, there are several important points
to always remember:
Why not make money when you buy real estate, just like when you sell it?
Just like in the stock market, if you buy too high...you can get stuck selling
for less.. Buy low; or pay the consequences when you are ready to sell.
If you pay too much, the lender will only lend on the fair market value,
so you will have to make up the difference with a larger down payment.
Never get emotionally involved with a properties because of their physical
appearances .These are secondary considerations.
Look for income property with good net operating income, a reasonable cap
rate and or a high occupancy rate in an upcoming or established neighborhood.
Find out the historic values of the neighborhood? Rent control? Section
8?
Will the seller give a credit for repairs and damages?
Always make sure you are dealing with a MOTIVATED SELLER. This is someone
who needs to sell more than you need to buy.
Please click here to contact Marc Wizman & Associates
or call (310) 746-8444. Thank you and we look forward to hearing from you!
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