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Your First Real Estate Investment

Making your first real estate transaction, whether as a primary residence or a planned investment, can be profitable and exciting, but it can also be overwhelming. Follow these steps when investing in real estate.

 1. Educate yourself. This does not mean that you have to go back to school, but that you have to take responsibility for what you need to know and learn. Study the market that interests you. Use the Internet, local land registries, and real estate agents to find sales prices for comparable properties. Learn about the transaction process, the role and responsibilities of each person, legal requirements and insurance. A fee is charged for each component, which is different. Searching for prices can help you avoid wasting money.

 2. Get your financing in order. A common mistake new investors make is finding the property first and then getting funding. Before looking for this hidden gem, get pre-approved for funding. Select a lender by choosing a bank, mortgage company, or online lending company. When you talk to your lender, tell them how much you want to invest. They collect a lot of financial information about you (income, credit rating, liabilities) and give you an idea of ​​how much they are going to fund. With the many financing options available today, it is up to you to decide which one is best for you. Funding plans have different variables, including different interest rates, initial cash investments, and tax implications.

 3. Research your property. It can be difficult to find properties to benefit from. Make use of the internet and the property section of the local newspaper. Look for abandoned and "available for rent" homes. Explore the area that interests you and try to find properties for sale by the owner.

 4. Negotiate a fair deal. Once you find the perfect home, you need to negotiate the best price. Don't expect to be robbed. Sellers try to get as much money as possible for their property and buyers try to pay the least. To bargain well, it is necessary to work with the seller to find a win-win situation. Rest assured, but plan for compromises. Stiffness often leads to costly delays and added stress.