First, determine your goals or needs:
Monthly cash flow?
Resale for quick profit?
Long term appreciation?
Pride of ownership?
When investors decide to acquire rental properties, they must first decide what they want to accomplish, and over what period of time. The same criteria that is used in any sound investment strategy or financial plan should be used in the rental housing business. If, however, you have decided that you just want to get rich quick, with no money down like they do on TV, you will probably have to move to Hollywood, then come back here to learn some real world basics and reality. It is very important to understand that owning and operating rental property is not just an investment, it is a business. Before you purchase any property you should have a plan for how you intend to manage it. You can learn to do it yourself by reading books or talking to a Realtor that does this for a living. You can also hire a professional property manager to operate you business for you. Property managers typically charge a percentage of gross income. This usually varies from 5% to 10% of gross income, often with an additional charge for new leases.
Much more comprehensive and in-depth information will be posted in the future so check back often. Good elementary education is essential as we analyze many of the factors prospective landlords and investors must consider before making an income property purchase. Before purchasing income producing investment real estate, you should have a basic understanding of the following items:
- Property Selection
- Determining Value
- Price and Terms
- Financial Analysis
- Understanding Mortgages
- Negotiation of purchase agreements
- Taking Title
- Tax Ramifications
- Like Kind Exchange (10-31 exchange)
- Slumlords – how not to become one….
- Buying Foreclosures
- A Good Deals for Veterans
- Estate Planning
- Financial Calculators
If you take the time and effort to read or review the pages linked above you will learn more than most real estate investors ever know before they make their first purchase. It is the kind of information experienced investors usually manage to learn eventually — but the hard and expensive way. You should find out that real estate investing in a business you want to learn and then do. When you decide that it is, and you should because it can make you rich like almost no other, please take the next step and join contact me. It will become your most valuable real estate investing and property management tool.
Experienced in commercial and investment property sales and purchases.
Experienced in property management services
Call me at 615-447-9814 or email me today for a Free Investment Portfolio Analysis.