Investing in real estate property is something that many do in order to secure profits. Some make an entire career out of it and others do it on the side to supplement their income. Other investors do so with the idea that they will keep ownership of the property and lease or rent it out for commercial purposes. Whatever the investment may do, there are certain checkpoints that an investor will want to accomplish before signing on the dotted line when obtaining a property.
1- Know your property
Property
Visit the property you're interested in at several different times of day or evening. The reason for that is that some things will look different in different lights. If there's a shadow on the wall during the day and you come back as the sun's going down or it already had and the shadow is still there, that might be a sign of a water problem behind the walls. If you only take a cursory glance at the property, you may end up missing things that will cost you down the line. Once is not enough. You should go through the property three or four different times and don't forget to look at the exterior as well as the interior.
2- Bring an expert on a walk through
If you know someone involved in construction or another trade, there's a good chance that they may know some things that you don't when looking at the building. For example, you may think that a discolouration on the siding is due to sun damage over time. A trained tradesman may look at that same discolouration and tell you that it's not sun damage, but instead there's mould growing behind the siding. That's a complete dramatisation of course, plenty of siding will fade because of sun, but it's also something that could be hiding something else. An expert will be able to tell the difference. They will be able to see curling shingles and know the roof will need replacing shortly. They will know that the basement looks brand new not because it was recently remodelled but because there was recent water damage and the owners had to make it look nice. They will also know how to double check and see if the owners fixed the problem correctly or just made it look good.
3- Know the potential use for the property
In knowing what the property will be used for, you will know exactly what will be needed in the property. It costs money to add things or take them away. Better to have a property that is perfect for the type of business that will use the space than have to spend money on adding bits later.
4- Know the background of the property
Don't forget to stop by your local county building and research if there are any liens or back taxes owed on the property. The information is public which means that you are able to look it up with no restrictions. It's free to do and usually easier to access than you may think. In some cases you can look up the information on the internet, but that will vary with each county.
Taking into account these points before deciding on the investment will save you both time and money. You will go into the investment armed with all of the knowledge that you will need to negotiate wisely and know that your property will yield you profitable results.
Property Checklist - What to Look For When Buying A Property
Derek Rogers is a freelance writer who represents a number of UK businesses. When it comes to buying below market value property [http://www.vip-service.co.uk/below-market-value.html], he recommends Newcastle Residential Investments.