If you are interested in learning about building your wealth through real estate investment, then continue reading today’s post to read some of the most frequently asked questions and call Apex Capital Group in New Jersey to learn how we can help. When it comes to buying rental property, you want to make sure that your property investment is sound so that you receive a good return on investment.
At Apex Capital Group, we understand how important it is to have good advice and solid backing, which is why we offer a variety of options for you to get started in real estate investment. Call today and let us show you the possibilities.
1. How do I get started?
The first step you should take to get started with an investment property is to determine your financing. Some people have the cash to cover the purchase of the home and don’t need to worry about financing. Most people, however, need to consider what they are comfortable spending and how much they will need to finance. Whether you choose to go through a bank or other financial institution, obtaining financing is an important step. In addition to financing, make sure to register for the seminars that Apex Capital Group offers to help answer all of your questions and provide you with the support you need.
2. What is a distressed property?
A distressed property is a home that is typically sold under fair market value due to the type and number of repairs they need. Another reason that a home might be labeled as a distressed property is that it needs to be sold quickly due to the seller facing a situation such as foreclosure or a divorce. Regardless of the circumstances, you can benefit by investing in a distressed property because the sellers are almost always willing to accept a discount in order to get out of the mortgage contract. One thing to keep in mind is that traditional financing is not usually a good fit for distressed sales.
3. Why should I invest in real estate?
One thing that wealthy people have in common is that they have chosen to invest their money. Banks will not insure more than 250,000 dollars, and they typically fall behind where inflation stands. Investing is a way to help yourself accumulate the wealth that you just cannot earn from saving it in a bank account. Large amounts of money require assets that can handle high volumes of money and an investment property allows you to get the best return on your investment.
4. How do I know if a property is worth purchasing?
If you’re as excited about investment properties as we are, then be sure not to let that excitement drive you to making a bad purchase. Determining whether or not you should purchase a property is based on several factors. Make sure that you have access to MLS comps so that you can see what other, similar surrounding properties have sold for recently. Once you have those comps, factor in the purchase price, repair value, and the cost for those repairs, then you can make a better decision as to whether or not you will invest in it. It would be a wise decision to make sure that you have either a great personal knowledge of home repair or a reliable general contractor to advise you in determining the cost of repairs.
5. How do I evaluate a property?
We suggest you follow these steps to evaluate any property that are considering investing in:
- Determine the total rehab cost of the property.
- Determine the repair value based on comps from the MLS.
- Evaluate if the property will help you reach your investment goals.
- Account for expected days on the market based both on comps and current market conditions.
- Evaluate the overall risk.
Once you have looked these specifics, as well as the investment goals you have — buy, sell, other strategy — be sure to look at the big picture to fully determine the risk you are taking. Apex Capital Group in New Jersey has the experience you need to make the right investment property decisions. Call today and let us show you how you can grow your wealth through sound investments in real estate.