Real estate investing in Miami property is now becoming popular as 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 agent must be able to determine which one to purchase. Investors must follow six steps so as to
Real estate investing in Miami property is now becoming popular as 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 agent must be able to determine which one to purchase. Investors must follow six steps so as to understand, understand and achieve Acqualina residences Miami real estate investment success.
These are the six L measures to Miami real estate investing:
1. Location – Location, location, location is still the key of buying Miami real estate. Purchasing Miami real estate simply because the cost is reduced in a declining area is big mistake which needs to be prevented. Look for homes in a superb location like, good schools, economic secure and growing areas, near shopping centers and malls, close bus stops and subway rails, close to restaurants and hospitals. At times it is better to pay a little more for a property in a good place than getting a bargain in a place where it is extremely tough to sell or rent the advantage. Location is often overlooked in purchasing property as many investor think they can overcome a bad location if the price is low . Out of 2 homes which are precisely the same, the one at the best place will control a much higher sales price and leasing income. Location is the number consideration when buying Miami South Florida real estate.
2. Do not believe that you will be a millionaire over night. It requires years of hard work and dedication in order to succeed. Hold any property at least one year prior to selling it. Capital gain taxes will be greatly reduced. Consider renting the house for at two or three years. The rental income generated will help you to correctly repair and renovate the property. These investors were considering flipping the houses fast and make a killing in the process. Many houses now in foreclosure are due to investors which were caught in the middle and now realize that real estate investing is very hard to time.
3. Lease Option – Never lease a property with a lease choice to buy. Either sell or lease it straight out. A lease option generally is a catastrophe for both sellers and buyers. The renter will demand a large discount of the lease to proceed towards the down payment and closing costs. The problem is that tenant won’t get the property at the end of the lease along with the landlord/seller will have wasted a great deal of money in rebates given to the tenant/buyer. Require a 20% or 30% deposit in the tenant/buyer and also a clause in the contract that if they default on the buy they’ll lose the deposit. This technique will force the tenant/buyer to buy the property or lose the deposit. The risk of losing the deposit will soon remove the tenant from taking advantage of the landlord by walking out of the contract after receiving a monthly rental reduction.
4. Local – Buy real estate near to where you live. Don’t buy real estate in another state or in another country. Keep property investing local. Buy on your own county and on town. The more you know about the region where you’re buying the better the decision will be. The investor should always be close to the investment property. The Miami real estate investor should inspect the house often to determine any repair, roof along with other problems. The landlord must inspect the home every month when collecting the rent. Check for the number of tenants actually residing in the house, check for damages and destruction of the house and general state of the place. The investor/landlord will not be able to inspect and ascertain the condition of the house if it is located far away. Keeping real estate neighborhood is a vital measure in real estate investing.
5. Leverage – Most property books and seminars tell you to use other people’s money when buying real estate. This technique isn’t the best and buyers need to make an effort to purchase the property in money if at all possible. Purchasing a home in cash will help you get a better bargain and permit you to negotiate from a position of strength. Money buyers will not suffer and enter foreclosure if the market turns and they’re not able to sell or lease the house right away. Like Dave Ramsey consistently says”cash is king and debt is dumb”. Purchasing an investment property in cash is an superb way to avoid Miami real estate investment mistakes.
6. Learn – Research your property and find out about it before you purchase. A error in Miami real estate investing can be quite pricey. Purchasing the property in the wrong price the wrong location and in the wrong time could be damaging. 1 mistake could wipe out you and set you out of business before you start. Learn, study, educate yourself in all aspects of real estate investing before you purchase the asset.