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How to spot a great real estate deal !
The following three signs to identifying a decent real estate investment deal:
If It Pays A Fair Cash-On-Cash Return: The whole idea of an real estate investment property is to receive a healthy return. Investors should concentrate on buying cash flow properties that earn decent returns similar to stocks, bonds and CDs — around four to six percent.
If It Is Not Too Risky: Real estate investment is chalked full of risks, and as an investor, it’s up to you to do your due diligence. Forbes recommends that investors consider taking a fee simple ownership when purchasing an investment property. This is where the buyer is given title (ownership) of the property, which includes the land and any improvements to the land in perpetuity. In addition, no one can legally take that real estate from an owner with fee simple title, aside from a few exceptions. If you risk nothing in life, you gain nothing.
Doesn’t Require A Lot Of Your Time: We all know time is money, but as an investor, time can actually cost you. When searching for real estate deals, it’s important you find a property that doesn’t require a lot of of time and energy. Depending on if you become the landlord or hire a property management firm, you’ll want to find a property that can be rented to a decent credit profile tenant for as long as possible.
Comments (2)
Thank you @Ramiro Tapia jr
Michael Corso, over 5 years ago
Great post, the area where I live theres a foreclosure house for 161000 and other houses are in between 220s, do you think this is a great first deal?
RAMIRO.
Ramiro Tapia jr, over 5 years ago