Buying investment properties is a steady way to make income in even the most volatile real estate markets. An investment property is bought by the owner and then rented out for profit. While buying real estate for investment is not rocket science, there are many pitfalls for first-time buyers that can be easily avoided by doing research and making intelligent investment decisions. Using the following guidelines can help a buyer succeed in buying quality investment properties that will offer lasting income.

Good financial standing

Before a buyer even considers investing in real estate, their finances must be in good standing. Buyers need to have good credit to get the best financial deals and they also need to have money on hand. Most financial companies require a 20 percent down payment on a property. Mortgages for less than 20 percent down payment typically include higher interest rates, which cut into profits.

Use a professional

This cannot be stressed enough, especially for first time buyers. At the very least, a buyer will need a real estate agent to help sort out the good properties from the bad ones. Other professionals to consult include loan officers, attorneys and a tax officer. Once a good property comes onto the market it is often sold very fast and buyers are very competitive. The buyer needs to get his team in place before he starts looking at properties.

Start small

For first time investors, stay away from buying large properties like apartment complexes and condo buildings, since these often come with complicated financial deals. It is best to find a single home, duplex or even a mobile home that is for sale. Financing for these properties is simpler and more straightforward for first time buyers. Since the learning curve is not as sharp, the buyer can get their feet wet and later decide if investing in larger properties is something they want to pursue.

Location

One of the most important parts of buying investment properties is knowing the area. Renting duplexes and apartments can prove to be very profitable in college towns or urban areas, while single family homes often do best in suburban or rural areas. The best properties are located in areas that are economically sound, while buying a property in an area facing tough economic times is always a risky proposition. The real estate agent will be able to help the buyer develop a good strategy for selecting ideal locations.

Value

Everyone wants to get a good deal, and buying real estate is no exception. A buyer should focus on looking for a house that is being sold below market value, and stay away from overpriced homes. Again, use a real estate agent to help determine which properties are being sold for the best value. Also, make sure a home inspection is completed before purchasing a home, since some homes that are being sold for below market value may have serious faults that will be costly to fix.

Looking for Investment properties in London Ontario? Trust the top real estate team to get you the best house possible. With real estate agents In London Ontario and brokers your process will be fast and easy.

Looking for investment properties in London Ontario? Trust the top real estate team to get you the best house possible. With real estate agents In London Ontario and brokers your process will be fast and easy.
http://www.weswatsonteam.com/

Author Bio: Looking for Investment properties in London Ontario? Trust the top real estate team to get you the best house possible. With real estate agents In London Ontario and brokers your process will be fast and easy.

Category: Advice
Keywords: business, real estate, investment, home, family, profit, rental, condo, apartment, finance, mortgage