Property investing in Miami real estate is now becoming popular again since there are numerous properties in foreclosure, short sale, bank reo’s, and government foreclosures. With such an overwhelming stock of homes available for sale a real estate investor must be able to ascertain which one to buy. Investors must follow six steps so as to learn, understand and achieve Miami real estate investment success.
These are the six L steps to Miami real estate investing:
1. Location – Location, location, location remains the secret of buying Miami property. Buying Miami real estate just because the price is low in a declining area is large mistake which needs to be prevented. Start looking for homes in a superb location like, excellent schools, economic secure and growing areas, near shopping malls and centers, near bus stops and subway rails, close to hospitals and restaurants. Sometimes it is better to pay a bit more for a home in a good location than getting a bargain in a location where it is quite tough to sell or lease the advantage. Location can be overlooked in purchasing real estate as many investor believe they can overcome a bad location if the price is low. From two homes that are exactly the same, the one in the best location will command a much higher sales price and leasing income.
2. Long-Term – Real estate investing is a long term proposition. It requires years of hard work and commitment to be able to succeed. Hold any property a minumum of one year before selling it. Capital gain taxes will probably be significantly decreased. Think about renting the house for at a couple of years. The rental income generated will help you to properly repair and renovate the property. These investors were considering turning the houses fast and make a killing in the procedure. Many homes today in foreclosure are because of investors which were caught in the center and now realize that real estate investing is very hard to time.
3. Lease Option – Never lease a home with a lease choice to purchase. Either sell or rent out it. A lease option generally is a catastrophe for both sellers and buyers. The renter will demand a huge discount of the lease to proceed towards the down payment and closing costs. The problem is that tenant will not buy the property at the close of the lease along with the landlord/seller will have wasted a lot of cash in rebates provided to the tenant/buyer. Demand a 20% or 30% deposit from the tenant/buyer and a clause in the contract that if they default on the buy they will lose the deposit. This technique will induce the tenant/buyer to buy the house or lose the deposit. The risk of losing the deposit will soon eliminate the tenant from taking advantage of the landlord by walking from this contract after having a monthly lease discount.
4. Local – Buy property close to where you live. Don’t buy real estate in another state or in a different nation. Keep real estate investing local. Buy on your own county and on your city. The more you know about the area where you are buying the better the choice will be. The buyer should always be close to the investment property. The Miami real estate agent must inspect the property often to ascertain any repair, roof and other problems. The landlord should inspect the property every month when collecting the lease. Check for the amount of tenants actually living in the property, check for damages and destruction of the property and overall condition of the area. The investor/landlord will not be able to inspect and determine the state of the property if it’s found far away. Maintaining real estate local is a vital step in real estate investing.
5. Leverage – Most real estate books and seminars let you use other people’s money when purchasing property. This technique is not the best and buyers need to make an effort to buy the property in cash if at all possible. Buying a house in money can allow you to get a better deal and permit you to negotiate from a position of strength. Money buyers will not suffer and go into foreclosure if the market turns and they are not able to sell or rent the home right away. Purchasing an investment property in cash is an superb way to avoid Miami property investment errors.
6. Learn – Research your property and also learn about it before you buy. A mistake in Miami real estate investing can be very pricey. Usually you earn your money when you buy not when you sell. Buying the property at the incorrect cost the wrong location and in the wrong time could be detrimental. 1 mistake can wipe out you and set you out of business before you start. Learn, research, educate yourself in all facets of real estate investing before you purchase the asset. More info http://www.tndwest.com/2015/05/21/justin-billingsley-ask-is-technology-changing-real-estate/