You’ve heard the stories – people making fortunes off real estate deals. Perhaps you can see yourself as one of them, but you don’t know where to start. Having some apprehension when beginning a new business venture is to be expected. The leap from the beginning to the end goal can feel like a huge chasm to jump across. You’re bound to make mistakes, which is probably what you’re most afraid of happening; however, if you follow this simple guide to effectively getting your first real estate deal done and done well, you’ll see the momentum pick up. Read on to learn more:
1. You’ll Need the Right Representation
The real estate agent you decide to work with can determine the outcome of your success. That’s why it’s so important to pick one that has extensive experience and skills in communicating, negotiating, and asking the right questions. Your real estate representative should know the area well, understand the comparables, and have sealed deals involving apartment buildings, duplexes, and the like.
2. Find the Right Property
If it’s too good to be true, it probably isn’t. Keep this in mind when seeking out your first real estate deal. Without doing your due diligence, you could end up thinking you came across the real estate deal of a lifetime only to find out later that the zoning requirements don’t add up or there is a lien on the property you purchased. Proper investigation into a property by you and your real estate agent is paramount to your financial success.
3. Schedule Several Property Inspections
After finding a property, ask for a longer than usual inspection period and have the property go through multiple inspections. It’s important to ensure there is no structural damage to the property, as well as mold, issues with plumbing or electricity, or various other issues that could end up costing you serious money down the line.
4. What’s the Curb Appeal?
If you are eyeing a property without any curb appeal or hardly any pictures posted online, chances are the seller isn’t feeling confident and will give you the property at a lower bid. You just have to offer one. After you secure the property, fix up the curb appeal and you’ve already increased your profit.
5. Negotiate Interest Rates
Chances are you probably didn’t know you could negotiate interest rates with a bank. You can – if you have a sound real estate purchasing plan. In fact, you can shop around both big and small banks, credit unions, and even private lenders to find the best rate. The better your credit and amount of collateral, the better negotiating power you have. If you can, stay away from brokers as they will take a percentage for being the middle man between you and the bank.
To make your first real estate deal a success, you need guidance from a reputable real estate agent, and you need to do your due diligence. Take the extra time to do the research that counts, even if that means someone else might come along and sweep up the property. But don’t worry, another one will come along shortly and if you stick to this method, you’re sure to make your first real estate deal an amazing success.