The Buyer’s Market
One of the key tasks that you will undertake on a fairly regular basis when you are attempting to join the real estate investing business is the purchasing of property. After some time it will become your bread and butter activity. You will pick up the skills that enable you to identify the good properties amongst the pile of options that is set before you.
You will know the right time to buy and the right time to sell. You will able to identify the real price of the property as opposed to the one’s that the seller thinks that they can get away with. Above all you will know the places where it is possible to make good bargains on property.
These are the skills and competencies that will ultimately determine whether you are successful at work you do or not. This article will aim to explore some of the main things that you would be expected to encounter in your efforts to become a successful real estate investor.
There are a number of avenues through which you can acquire real estate properties. The first of them is the estate agents. They will have some level of specialization whether it is on domestic properties or commercial properties. It is better to go to a specialist rather than a general estate agent because they will be able to get you the very best deals best on their specific knowledge of the market at that time.
There is a tendency for them to charge fees but it will be worth the while when you consider how much savings you could make by just choosing the right property given the prevailing market conditions. The estate agent may also have peripheral services attached to what they are doing in terms of mortgage advice and funding. This could be one way of raising the capital that you need to kick start your business.
There are some people who are happy to go to the auction houses which have the rather distressed segment of the property market. You can make a killing on some of those houses that people want to sell on the cheap. However you will also encounter some real turkeys. You are best advised to really take your time and study the functioning of the auction house before you put you oar in.
I consider auctions to be a specialist subject and not every jumped up property investor can make a good killing from them. If you think that it is just a question of visiting and placing the minimum bid then you couldn’t be more mistaken. The traders will take you to the cleaners if you begin to pull these sorts of stunts.
You can then decide to go the private route in order to acquire property for your real estate investing project. This also has its risks because you are in effect dealing with a private equity investors or individual who may or may not be trustworthy. You also have no realistic possibility of recouping your money if the deal ends up falling through. However you will always be the powerful element in the business relationship so there are advantages to this arrangement.