Mark Roemer Oakland Provides You with Essential Strategies for Real Estate Investment Success
Mark Roemer Oakland believes that certain factors help to determine the amount of success you can enjoy while investing in real estate. It is important for you to consider these factors if you are planning to invest in real estate. Mentioned below are such essential factors:
- Location of the property- The most crucial factor to consider while buying a property is its location. You must check if the property is close to schools, nursing homes, markets, etc. Also, you must ensure that the property is in the vicinity of your workplace. Plus, it is essential to consider these factors when selling a property. The location plays a vital role in deciding the property’s best price.
- The property’s valuation- Financing during the purchase depends on the valuation of the property. When deciding on the property’s valuation, you need to look at the listing price, insurance, taxation, etc. So, you need to use a valuation method like sales comparison, cost, and income to find out the property’s valuation before buying it.
- Be clear about the purpose of the investment- You must have a clear idea about the purpose of your investment. If you want to buy a property for self-use, be sure to check if it meets your requirements. Also, you can buy and sell property that can be both a long-term investment and a short-term one. Whatever the purpose of your investment, you must be sure about it.
- Look for the profit opportunities and cash flows- Positive cash flow refers to the amount left after expenses. While purchasing property, you must look for positive cash flow. You can expect rental income from your investment. Also, you must make a note of profit opportunities like tax benefits, increase in intrinsic value, etc. It will be great if you do a cost-benefit analysis of renovation, mortgaged loans, etc.
- Be careful about your commitments- Before you take up any loan for the property, be sure you understand the nature of the loan. It is a big commitment to your future income, and you must do proper research. Also, you must avoid high levels of debt that are referred to as over-leverage. Sometimes, even experts in real estate cannot face the challenges that come with an over-leverage situation.
- Decide your choice- You have the option of buying an old property or an existing one. Both options have their pros and cons, and you should consider both options and decide which is suitable for your needs. If you buy an existing property, you may get it at a lower cost, while new construction may cost you more. New construction also comes with risks of increased costs and delays. Whereas, in an existing property, you can enjoy established improvements.
According to Mark Roemer Oakland, you must consider the factors mentioned above before you make a purchase. Apart from these factors, you must also look for an investment that meets all your requirements and desires. Don’t rush the process since it would allow you to avoid any regrets.