Purchasing an Investment Property in South Florida
Purchasing an investment property can be a difficult undertaking. It is necessary to have some knowledge of the business and a solid network around you to maximize your profits from investing in real estate.
First, you should know where to look to make a purchase. For the best deal on a piece of property you are going to want to look at properties that have just entered the market, or those that have not been over-advertised. In addition, if at all possible you want to deal closely with the owner, without involving a third party such as a bank or real estate broker - people that will have their eye on the profit and therefore try to maximize the sale.
Wholesale deals and motivated sellers are excellent sources of properties. Wholesale properties are houses that have been scouted by real estate investors, contracted for sale well below market value, and are now available for assignment to a different investor who will go on to rehab it and profit from the re-sale, or rent it for long term cashflow.
Motivated seller leads are pre-foreclosure properties whose owners are in a rush to sell the property prior to the bank foreclosing. These are privately sold properties, and therefore generally will not be available to the average investor, giving you an excellent opportunity to buy low and sell high if you know where to find these properties.
Commercial property is a very difficult undertaking, particularly in such a competitive area. It is normally a good idea for the average investor to look to residential real estate for investments, especially in today's market where turnaround of houses is at an all-time high in.
There are two main methods to profiting from residential real estate. Once you buy your property, you can either rehab and resell it or turn it into a rental property. Rehabilitating and reselling a house is an excellent way to make a great profit in a short amount of time. Houses can be purchased "as is" for thousands below their market value. Then, with the right contractor and right game plan, you should be able to make the proper repairs and resell the house at its new market value, which should be thousands above the original purchase price.
Renting a property on the other hand allows you to turn a one time investment into a long term money maker, particularly in South Florida. While there are several unique challenges to renting a property, if handled correctly a rental can be a consistent stream of dependable revenue. First, you will be responsible for repairs, so if you are intending to buy a fixer upper for these purposes, consider how long you wish to hold on to the property.
If you are purchasing the property with the intent of allowing it to be an extra source of income well into your retirement, it may be a good choice to buy one at an extremely low price that requires a great deal of repair. This is an especially valuable idea for rental properties, because repairs can be claimed on your tax return at the end of the year. Even if you have to replace items in the house instead of just repair them, these improvements add on to the property's resale value, so typically the investor does not lose any equity. By providing a nice, clean, and well maintained place to live, you are more likely to attract tenants that will be happy with their rent situation and pay their balance on time.
Either way you wish to invest, you will need both information on how to complete the process as well as listings of the premium leads in the South Florida area. This is where MyHouseDeals.com comes in. As a member of MyHouseDeals.com, we'll keep you updated about new properties in your area daily, and each new house added to the list comes with full descriptions, value and repair estimates, and full contact information for the seller. Become a member for free today by clicking the button below!