Investment Properties for Beginners

Document Sample
Investment Properties for Beginners Powered By Docstoc
					Investment Properties For Beginners

Before you start searching for investment properties for beginners, take a little time to
understand the basics and you will be rewarded with a solid investment.

In the last 5 years or so, new investors were throwing 100% financed loans on investment
properties all over the USA. I would often evaluate these deals and scratch my head in

More often than not the deals were horrible deals that relied on the market having
unsustainable growth to be worthwhile. As we know, reality has hit and most of these
bad deals have likely ended up in foreclosure.

With the real estate market in a flux right now, there are numerous buying opportunities
for the smart investor including the beginner to investment properties. Unfortunately,
there are a lot of properties out there that do not deserve your attention too.

So the question is, how do you know which property investments are good and which are

Well, there is not one simple answer but I will do my best to highlight some basic terms
that you should be aware of.

Cash flow positive - does the property have positive cash flow from the beginning?

Condition of property - what is the condition of the property?

Repairs - what repairs and maintenance are required?

Loan terms - what is the financing rate and term of the loan. If it is an adjustable loan,
when does it adjust and by how much?

Location - what is the rental market like in the area you are considering?

Property management - if you are planning to use a property management company be
sure to get references. Sadly, a lot of management companies do not do a very good job
of managing.

Finding investment properties for beginners can be extremely rewarding and profitable
but be sure to do adequate research before signing on the dotted line.

Shared By: