You’ve heard it said before:
Investment properties can provide great financial returns and can have wonderful tax benefits. Creating a passive income by investing in real estate is the way to go! Now is the time to buy rental properties. These concepts are all the buzz.
OK, you’re intrigued. You’re interested. But just how do you get started? Where do you begin? Hopefully, after you’ve read this, you’ll have a better idea of these answers. The Montuori Group has helped many investors purchase properties for the use of rentals and we can help you too.
Purchasing an investment property for rental purposes is very attractive to those who want to diversify their income potential with real estate. It has the ability of being the most secure and quickest path to build a passive income and wealthy future and is the thought of many to be a much wiser investment than stocks or bonds. While purchasing an investment property is much like purchasing your own personal home, there are some key differences to consider before making the decision.
A few items to consider when preparing to purchase an investment property for rental income purposes:
Research, Research, Research…And More Research.
Know what kind of property you want to purchase, how much you can comfortably afford and what the monthly cash flow will be. Other items for consideration are the rent projection in the neighborhood you’re investing in, your ROI (return on investment), property tax information, HOA information, city zoning plans for the area, surrounding crime statistics, area job outlook, and amenities surrounding the property. This is a big purchase you’re about to make; take the necessary measures to protect it.
The Right One Will Get The Job Done Right!
Align yourself with a Realtor who is experienced in rental sales. This point cannot be stressed enough. A knowledgeable Realtor will make the entire process easier on you while negotiating on your behalf. You’ll need a Realtor who will take the time to explain step by step and be able to answer any questions you have adequately with expertise. You’ll need an experienced professional to get you through the process of purchasing your rental property. Competence is key.
Before You Go Shopping…
Just as important as aligning yourself with the right Realtor, you’ll need an expert lender to assist you with financing. It is crucial to choose a strong lender who will communicate with you throughout the process. Your Realtor will be able to suggest a few if you don’t already have a lender.
Communication Is A Must!
Share with your Realtor the parameters of a property you’re looking for, when you’re anticipating on purchasing, the price point you’re willing to pay and are approved for, and what areas you’re looking to buy. Your Realtor, who has inside access to MLS, will begin searching available listings with you to find one that meets your wishes. Once a property is determined, your Realtor will guide you through the purchasing process.
Another entity to align yourself with, along with a knowledgeable Realtor and lender, is a solid property management company. Again, your Realtor, experienced in rental purchases, will have some to recommend. Being a landlord involves many hats, among them include maintenance, rent collection, renting and evicting, overseeing the activities of the property and tenants… all this takes a great amount of time and energy.
Window Shop Before You Shop...
You’ve found your Realtor, lender and property management company. You know how much you’re ready to invest. You know and understand the cashflow and have an idea of the area you’d like to buy. Now is the time to begin shopping for the property. Your Realtor will search and send you properties that most closely match what you’re looking for. Drive by. Drive by at night. Drive around the area. If the property still interests you, contact your Realtor for a showing.
Ready, Set, Buy!
After viewing properties, you’ve found the one you want to invest in. Your Realtor and lender will take it from here. Availability and communication are vital at this juncture. While your Realtor will be negotiating on your behalf, you will be consulted all the way through the process and will be occasionally needed to sign documents.
The Montuori Group is ready to assist you in any of your real estate needs, whether it is selling, buying or investing. Our team works 8 days a week to service our clients. Call us today at 916.698.1171 or email us at firstname.lastname@example.org