| There are basically two ways you can make money | | | | looking into property investment and that you might be |
| from your real estate investment, capital appreciation | | | | a frequent customer, then there is a chance that these |
| and monthly rental. In this article we will assume that | | | | real estate agents would welcome you and inform |
| you are a serious real estate investor and are | | | | you of other real estate bargains that you might be |
| purchasing this property to rent out and use | | | | not aware off.Fifthly, always make it a point to be |
| mortgaging to control 100% of the property with a | | | | early for the appointment and spend some time |
| 30% cash down payment. Note this article does not | | | | observing the surroundings of the real estate in |
| deal with the no money down methods of property | | | | question. Things to take note off include, a bad |
| investment which will be covered in a separate article. | | | | neighbourhood, no human traffic if you are looking at a |
| This article aims to show you how to identify a good | | | | commercial property, inaccessibility, no car porch or |
| real estate investment that can provide you with a | | | | parking facilities or something that your intuition tells you |
| good monthly revenue stream and cashflow.Firstly, | | | | is not right with the property. This is even more so for |
| ascertain how much cash you have in hand initially. | | | | bargain properties and auction properties as there |
| This amount will determine how much financing you | | | | might be something very inherently wrong with the |
| can get and the maximum amount of real estate you | | | | property. Spend sometime talking to the neighbours |
| can control with your initial sum. Taking our example | | | | and ask them about the neighbourhood and then ask |
| above, if we have $30,000 in hand, we can use this to | | | | them if they know of anything wrong with their |
| control a property worth $100,000.Secondly, once you | | | | neighbours property.If you are purchasing a run down |
| do a rough estimation of your initial down payment | | | | property, you would want to bring along a contractor |
| sum, spend some time going to all the mortgage | | | | and building engineer or architect to inspect the |
| brokers, finance companies and banks in your area to | | | | property with you so that you can estimate how much |
| see if they are willing to loan you money. You would | | | | you might have to spend to spruce up the property |
| probably need some credit reports and other | | | | and later rent out or sell. Once you have ascertained |
| documentations so as to convince them of your credit | | | | the real estate investment is good for your purchase, |
| worthiness. Some things you would want to learn from | | | | start asking about rental yields of property in the area |
| your financers include, the interest rate and whether its | | | | and what price the agent will be able to rent out your |
| fixed or floating, the monthly instalment size, whether | | | | property.Finally, once you have the property price, the |
| they have special short term mortgages in case you | | | | mortgage instalment payment, the rental yields, and |
| should identify a good property to flip and re-sell. The | | | | operating expenses, spend some time generating a |
| financing element of a real estate investment deal is | | | | spreadsheet to estimate whether your purchase is |
| very critical and spending some time shopping around | | | | viable from a monthly cash flow perspective. You |
| for the best bang for your buck would be a prudent | | | | want to find the property with the best cash flow for |
| move.Thirdly, now spend some time peering intently at | | | | your real estate investment. Once you find one |
| the classified advertisements. You want to ascertain | | | | property like that, spend your energy finding other |
| the properties with the best rental yields as if you | | | | similar properties and you will start seeing your monthly |
| want your real estate investment to outperform the | | | | income rise.Note that generally you are more likely to |
| national rental yield, you would want therefore to look | | | | encounter surprises as opposed to surprise income, so |
| at properties in areas that are high in demand and look | | | | factor this into your calculations. Remember to keep |
| for bargain real estate investment deals. Another good | | | | some money in your bank account to take into |
| way to figure this out is to ask someone who is | | | | account things like changing of tenants where a month |
| knowledgeable in property. Ask him for places with | | | | may go by without any rental coming in and you must |
| good locations for the purposes of rental. A quick tip to | | | | be able to pay the monthly bank instalments. Also take |
| note, places near the sea and on a mountain always | | | | note of where in the rental cycle you are purchasing |
| fetch better prices than any other properties. Thus | | | | the property, a property that may be in positive cash |
| even commercial properties with a sea view | | | | flow now, may not be so in the next few years.In |
| command a slight premium over properties that do not | | | | conclusion, this article has highlighted ways to ensure |
| have a sea view.Fourthly, now after identifying on | | | | that you have a good grasp of all the different ways |
| paper the bargain properties within your budget, start | | | | to choose a real estate investment property that will |
| making appointments with real estate agents to look at | | | | yield you a positive cash flow. |
| properties on your list. If you make it clear that you are | | | | |