When it comes to real estate, there are a lot of things that go into a successful deal. If you don’t know what you’re doing, or if you can’t afford to hire a real estate team like Nelson Partners to help guide you through the process, your chances of success in real estate investing may be slim. If this sounds like you, then here are some tips that will help ease your mind and make sure that things go smoothly:
1: Pre-Transaction Planning
The most important part of any real estate purchase is the planning. After all, you wouldn’t want to buy a piece of property without knowing what was in it and who your neighbors were going to be way back in the day when nobody had cell phones, and texting wasn’t even a thing yet.
It’s easy to forget about the “old days” regarding real estate. But there are a lot of things that people used to do before making a purchase, and they should be considered again today even if they seem unnecessary or too time-consuming. Things like:
- Getting a title report
- Inspecting the property for problems
- Letting your real estate team research to find you the best value
Title reports are important for everyone, but especially if you’re going to be making a lot of money on this investment. A title report will tell you everything about the property that is worth knowing. It tells you who owns it now and what liens or issues they may have that could get in the way of you owning it or selling it.
Liens and unresolved issues with anything, but especially a piece of real estate, are something that you don’t want to have to deal with. It’s much easier to negotiate for these things before you make an offer than after your money is tied up in escrow.
Inspections are necessary as well because you want to know what kind of condition the property is in so that you can appropriately price it and do the proper fix-ups if required. If not, then you’re going to have a whole lot of money tied up in a project that never turns a profit. This will be much more difficult to fix than just getting a good deal on the property in the first place.
2: During the Transaction
If you’re going to close on a property that you’ve bought for investment purposes, then you should be prepared to do it. Often times, people try and make real estate deals happen, and they fail because there was something wrong with the deal itself (for example, your financing doesn’t work out, or maybe your contractor can’t get started on time). In order to make sure this doesn’t happen, you should have a fully prepared backup plan in place.
3: After The Transaction Has Been Made
Finally, when it comes time to close and move into your new home or office building, you’re going to want to be prepared for the transition. If you don’t know what’s going on, it can be a very confusing process. If you have a plan in place ahead of time, however, this will make things a lot easier for you, and it will help you avoid any serious problems down the line.