Buying Rental Property, Why Real Estate

I have been actively selling real estate for over 17 years, so I've heard a lot of different questions in the industry. Today I will answer a common question I receive from people considering buying a rental property as an investment.

I will cover:

How successful real estate investors determine the best time to buy.
So I think that real estate is the best investment vehicle today.
Useful tools I use to decide whether it is a pretty good rate, the rate of CAP, etc.

Time: First, I would like to deal with time. Say you are an investor, or considering becoming one. The best time for you to buy can be completely different than it is for someone who just learned they are expecting their fifth child in 6 years and desperately needs the extra room. It is also important to analyze your financial situation to ensure that will not create an unacceptable risk. For example, is probably not a good time to buy an investment if they have cash reserves in the bank to cover repairs, vacancies, etc.

What the media says about the opportunity? As you know, the council of the media has really been a mix and advice can be as different as night and day. You can listen to a channel that tells you to buy now, but as fast as you turn the newspaper page that urge to wait for the bottom. I agree with many of you out there, it's frustrating.

Wait for the bottom? Let's talk about the mistake of "waiting at the bottom" idea. It is likely that the advice you hear, even from local professionals more or less like this:

Wait for the bottom, or
Buy Now! There are many agents who give this answer in any market, not because it is the best time to buy, but because I really need a commission check. This is something that the industry refer to as "the breath of the Commission."

Again, it can be frustrating, with the local council to get well.

I admit that, pending the background sounds like a great idea and a great strategy. The problem is to buy low and sell high, in fact, I think it's a great idea and tries to buy cheap myself. The expected background for the strategy has a small dilemma, and it is to find someone who can determine when we are at the bottom is! So who can analyze the market and tell us when we are at the bottom?

NO ONE CAN! Not the best real estate broker, the guru, a type of mortgage, or an economist can determine precisely when we are at the bottom (or top) of any market. If only I had a crystal ball, magical celebration of all responses to the housing market we'd all be rich! Be careful, however, are not the "guru" out there that will teach you (at a) how to successfully invest in property in a nice hefty fee.

The only way any of us really know when we have reached the bottom (or top) of any market is overlooking rear. A perfect example is the history of the market in the area they live:

We can easily determine, with the past market data, from July 2005 was the peak of our housing boom. Did we all run around announcing that we were on top of the market? Of course not, because none of us really knew we were on the crest of the market at that time. The fact is that many of us think he still had a few years left "booming" market. We knew that from that time, our market was on a slippery slope downhill.

Investors believe that the sale of your property in 2005, but waited until the peak are kicking not to take advantage of the market. It is often the same investors are so determined to find the fund that end up losing it all together (and the offers that come with it). This is a common beginner's mistake that costs them thousands of dollars on the purchase and sale of the investment.

Just a quick tip: A Top Agent can help determine when we are near the top or bottom of the market and when you should consider buying or selling. Of course, it is also advisable to hire a broker who has real experience in real estate investing him / herself.

So what do successful investors to determine when to buy more property income?

We look at the current market and we wonder if a buyer or seller's market. We also wonder if we are comfortable buying a house based on certain factors. We do the same in the sale and investment also, of course. Instead of waiting for the top or bottom, use the information and facts we know. What are some facts that make us to know about today's market?

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