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More Real Estate Investor Tips

By - 2008

The following real estate investor tips are a continuation of the page Real Estate Investment Tips. Links to other relevant pages can be found at the bottom.

Flood Zones

Is the house in an area that is at high risk for floods? You can find out at the FEMA website, (follow the links to the Flood Map Center - or just enter that term in a search engine). Banks will often require a flood hazard assessment (and will charge you up to $50 for it) before loaning on a property.

Your Home as an Investment

Flipping your own home can be one of the most profitable real estate investments. This is partly because you get to keep capital gains tax free if you live in the home for two years (ask your accountant for the specific rules on this). Also, because you have two years to improve the home, you can take the time to shop for the best prices on materials and contractors. Lower costs mean higher profits.

Making Improvements

Don't over-improve a house. Renovations can only push up the value of a property just so far. To use an extreme example, putting $30,000 in custom cabinets into a mobile home may not raise its value at all. Generally, you should do those improvements that bring a home up to the standards of the neighborhood and perhaps a little beyond. Don't think you can make a house worth $400,000 if it is surrounded by $200,000 homes.

Educating Yourself

For an easy and fun real estate education, try visiting open houses every Sunday (or whenever they are most common in your area). If possible, try to guess the price before you learn what it is, to see how good you are getting at estimating value. Concentrate on the types of houses that you are thinking of investing in.

Choosing a Real Estate Broker

One way to decide which broker to list your property with is to visit several and note what type of buyers they have coming and going. Are they the type that would be interested in your house? Is there a fair amount of traffic in and out of the office. Ideally, you want a real estate office that works with many buyers and many of the type that are likely to be looking for a property like yours. You also should find an agent that normally works with real estate investors.

Preparing for the Sale

Selling tips: Make sure that your property is clean, neat and smells nice. You might be able to look past the post-renovation clutter or dust or bad odors, but your prospective buyers may not. Even a perfectly renovated house has to meet these basic criteria if you expect to have an easy sale at a decent price.

Marketing a Home

Selling tip: Get your neighbors to help you sell that property. Tell all of them that you are selling. They may have already heard a friend mention that he likes the neighborhood. They also will be motivated to talk up your house to good dependable buyers who will make good neighbors, since they have to live near them.

Take Photos

Take a digital camera with you when you go to see a property. It is a good way to remember what the house looks like, and to document problems that you spot. You can review the photos as you decide what improvements and repairs need to be made.

Other Relevant Pages:

Three Real Estate Investment Ideas - Specifically for tough markets.

How To Get An Education In Real Estate Investing - Five steps.

Is Real Estate A Good Investment Now? - Written in 2009.

Cash Flow Makes It Safe - When market value is less relevant.

The Benefits Of The Housing Slump? - Yes, there are some.

Unusual Real Estate Investments - Hunting lodges, flea markets and more.

Real Estate Tips - A half dozen real estate investor tips.

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Houses Under Fifty Thousand | More Real Estate Investor Tips