Are You A New Real Estate Investor?

Are you considering a investing in real estate? If yes, then here are are few things to consider?

1. When you purchase your new investment property, do you have the money or an investment loan to make the necessary changes to rent or flip?

2. Do you know and/or understand the neighborhood you are buying in?

3. Have you done your research? Is there a rental market?

4. What are your long term goals for investing? Ie; Flip, rent, how many homes per year…

5. What are the demographics?

6. Is the home in a flood plain?

7. Does the city require an inspection? If so, if the city repairs are required will you have the money for a possible escrow account.

8. Is the city considered to be stable or depressed?

If you are not sure of most of these questions, do some research before you begin shopping for the investment property.

Are You A New Real Estate Investor?

Are you considering a investing in real estate? If yes, then here are are few things to consider?

1. When you purchase your new investment property, do you have the money or an investment loan to make the necessary changes to rent or flip?

2. Do you know and/or understand the neighborhood you are buying in?

3. Have you done your research? Is there a rental market?

4. What are your long term goals of investing?

5. What are the demographics?

6. Is the home in a flood plain?

7. Does the city require an inspection? If so, if city repairs are required will you have the money for escrow if the city requires it.

8. Is the city considered to be stable or depressed?

If you are not sure of most of these questions, do some research before you begin shopping for the investment property.

Do You Know What You Are Renting?

Recently I was helping a tenant client find a rental home.  After a few days We found the perfect rental. The agent was clear that this particular property was in Pre-foreclosure. The home was going to rented to my clients so the bank could recoup some of their expenses.  Since the home was in Pre-foreclosure, and the home owners had moved out, the bank held off from foreclosing to recoup some of their loses.  At least that was what we were told.

My clients were ready to move. They could save money after moving in.  Once the lease was over my clients would be given the right to purchase.  What a fantastic scenario.

On Friday, the 17th of August, we went to the home. My clients were ready.  They hired professional movers, two cars were loaded with items and checks in hand. The realtor, that was represented the bank, was their ready to turn over the keys. He walked up to the door to find out that the locks had been changed and a new notice on the door stating that this home was in the possession of Fannie Mae. The banks attorney had proceeded with the foreclosure process and Fannie Mae had taken possession of the home.

Unbelievable!  My clients had already moved out of the home they were renting because that home owner hadn’t paid his mortgage or association fees.  What a terrible situation.  They had to move their belongings into storage and stay into the hotel until today, August 21st, 2012.  Yep we found a rental.  Whew!

What’s the moral of this story?  Before renting a home make sure it’s not in pre-foreclosure.  If it is make sure the bank has the right to rent it out.  Do your research and ask questions.  Maybe banks should just stick to lending money and not becoming property managers.

My story ended well. But can you imagine how many people end up renting properties just to find out the home owner isn’t paying the mortgage.

People Who Understand Money Say, “Buy A House”

People who understand money say now is the time to buy a house.  The Wall Street Jounal said it a few weeks ago. “It’s Time To Buy That House”

Why should you buy?  First, home prices are back to prices in 2006 and some areas of the Chicago land market you can find prices that mirror prices from 2000.  Second, Interest rates are affordable.

Check out the Wall Street Journal article on what people who understand money are saying about buying a home.

http://online.wsj.com/article/SB10001424052970204774604576629443313035736.html

If you think you can’t own, Think again.  Still not sure.  contact me today to get on the road to home ownership.  carrie.bey@bairdwarner.com

Have a question about Real Estate? Ask me on Facebook or Twitter

That’s right!  I am answering your Real Estate questions every Thursday on facebook or twitter from 6:30pm – 7:30pm.  Follow me on facebook and twitter today to get the most recent real estate news.

Click now to follow me.  Facebook and Twitter

Archives

Categories