It is important for the estate seller to trust the buyer with regards to the equity payment as per the terms. One of the most practiced ways is to give the seller a substantial amount of cash as down payment.
You don’t have to put any money down, hire an attorney, conduct a closing or anything else that is involved with traditional real estate. You collect a check for setting the deal up.
Another important factor is that you should be able to keep your finger on every aspect of your investment. Keep a good idea about the proportions and layout of your investment. Maintain a good balance in your portfolio. be wary of the so called “Paper Investments”. Do not become overly dependent on them as a downfall in the market could easily lead to major troubles for your investment. Keep a careful eye on such investments and do not let them dominate your portfolio.
I’ve found in the past that always makes for a better tenant that takes better care of my property. As a result my properties are more liquid when i need them to be. All in all, for us real estate investors, since we didn’t create this mess, and we are not responsible for the situation. So we feel real estate investors shouldn’t feel guilty when taking advantage of the mess that is in front of us.
Learn Your Market – Know the values of homes sold in a distressed situations versus resale homes. Know the repair values of the homes how old are these homes in each subdivision a home built in 1982 may need a complete rehab as compared to a home built in 2003.
However, real estate invesment calls for certain qualities, such as a good credit record, a sound financial position, an appreciable income, bundles of dollars for down payment, and the lenders by your side.
It goes without saying that I own these stocks. I have invested about 1% of my investment capital in each of these plays. All data is from S&P and was collected recently.
Your peers are buying properties in these other markets, getting a lot of cash flow for their money and are racking up a diverse portfolio of assets quickly. Are they geniuses? Are they better real estate investors? The answer is no. Many of these people stepped outside their comfort zone, took very little risk, and now are reaping the rewards. How are they doing this? Let’s take a look.