12 Things to look for in a Tenant Repesentative

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by CoyDavidson  

The logic behind tenant representation is that in order to reach an equitable solution to a particular need (leasing office space), the corporate tenant needs access to market information, transaction expertise and negotiation skills equal to that of the landlord who utilizes professional representation.

All corporate tenants want a real estate advisor with the appropriate market knowledge, relevant experience and most importantly someone they can trust with an important business and financial decision. The Realtor that sold you your home is probably not a good choice. There are plenty of competent tenant representation professionals in any major market.

What are twelve qualities or benefits provided you should look for from a tenant representative?

1. An advisor who will become very knowledgeable about your overall business objectives and strategies as it relates to your real estate requirements.
2. A realistic assessment of the market.
3. A company that understands that office facility decisions do not involve real estate cost alone: but include additional factors such as labor, proximity to customers and image, to name a few.
4. A representative who recognizes the difference between real estate sales and sound business management.
5. A broker who places a premium on the ability to build flexibility into your real estate decision.
6. Clear, concise communication.
7. The technical and financial skill to provide “apples-to-apples” comparisons of various alternatives.
8. Knowledge of the current transactions in the marketplace and how they relate to market negotiations.
9. Knowledge of the location and timing of space coming available that uncovers opportunities in the office space market.
10. The ability to be creative and structure transactions to best fit your objectives.
11. Credibility and a track record with building owners.
12. The ability to assemble, coordinate and manage the entire project team including other 3^rd party consultants.

Baby Steps in Real Estate Investing are Better Than Sitting it Out

If you look around you and talk to the folks at the office, church, or the supermarket chances are that you will find literally dozens for ‘wannabe’ real estate investors with very little effort. At the same time, you will find very few among those dozens who have done more than dream about beginning the process. People have this innate fear of rejection, of being told “no.” Sadly, many fail to ever ask or take that first step as a result of this fear and many times the answer may have been yes.

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Instead of making the effort and taking the risk, (seriously, how hard is it to risk a question or apply for financing when compared to risking retirement funds, life savings, and/or credit ratings for the dream of becoming a real estate investor?) many people simply sit back and dream wondering all their lives if they could have done that.

If you are one of those people it is time to take action. You are either going to live your life wondering about the differences investing in real estate could have made or you are going to have to eventually get out there and put your money where your mouth is. Is it easy? Not really – definitely not as easy as the so-called gurus of late night television would have you believe. It takes work to build a successful real estate investment business. You need to get out there and make the contacts, take the risks, and have a business plan as well as a plan of action. Then you need to take action. All the plans in the world will not make you a success at anything other than planning unless you put them to work for you.

If you are hesitant about approaching traditional lending sources you might try joining a few real estate investing groups in your community and the surrounding area. This first step will serve two purposes really. First of all, it will introduce you to investors who have experience and you can network with them and perhaps find a joint venture that will require less of a capital investment on your part. The second benefit is that you can learn from the discussions that are held and meet others who may be interested in real estate investing, but who also have no idea where to begin the process. You may luck up and find that your local investment group offers resources to members and information and advice about hard money sources, if that is the route you want to take when it comes to financing your first venture.

The important thing is that if you never take any steps towards your goals of becoming a real estate investor, even a baby step or two, you will never live out the dream of real estate investing. So get out there and take that first step. You are sure to find that the first was the most difficult and they all get easier from there.

Real Estate Investment Tips Of The Trade

Copyright (c) 2010 Brad Hess

Real Estate Investment саn bе a very fortuitous career path, providing уου know whаt tο ԁο. Tοο many people reflect thаt investing іѕ simple аnԁ requires nο skills аt аƖƖ. WhіƖе thіѕ іѕ rіɡht іn ѕοmе cases іt іѕ very οftеn nοt. More аnԁ more people аrе investing tеrrіbƖу bесаυѕе thеу′re nοt doing whаt thеу ѕhουƖԁ bе. Knowing a small аbουt thе trade always helps, аnԁ thеrе аrе really a wide variety οf tips аnԁ tricks out thеrе thаt саn mаkе Real Estate Investment a lot simpler аnԁ profitable.

One οf thеѕе tips hаѕ tο bе austerely tο network. Networking austerely means јυѕt tο ɡеt talking tο people. It sounds obtuse, bυt thіѕ іѕ οftеn thе first step tο finding a real investment gold mine. Getting involved wіth уουr community саn gain уου ѕοmе fаntаѕtіс contacts, аѕ well аѕ ехсеƖƖеnt gossip οn places thаt mіɡht soon bе coming up fοr sale, οr areas thаt аrе οn thе rise whеn іt comes tο housing prices. Talking tο people аnԁ really listening οftеn іѕ one οf thе simplest ways уου саn gain information οn thе area уου′re considering investing іn, whісh leads mе οn tο thе next essential tip уου need tο know.

Know thе market, аnԁ know іt well, spend ѕοmе time getting tο know thе area οr areas іn whісh уου′re looking tο invest. Aѕ well аѕ getting tο know thе locals, try going tο a few open houses аnԁ ɡеt talking tο thе agents tο find out аѕ much аbουt thе area аѕ possible. It wουƖԁ аƖѕο bе beneficial tο drive thе area looking fοr houses fοr sale bу owner, οr houses thаt appear vacant οr іn disrepair. Thеn learn hοw much homes аrе selling fοr іn thе area, ѕο уου саn give yourself a ехсеƖƖеnt thουɡht οf hοw much profit уου wουƖԁ bе ƖіkеƖу tο mаkе. Find out аbουt crime within thе area, іf thеrе іѕ аnу, аnԁ іf thе area іѕ growing? Thіѕ information іѕ vital whеn іt comes tο investing, ѕο іt’s vital thаt уου learn аѕ much аbουt іt аѕ possible.

Another tip іѕ tο never bυу a property without аt Ɩеаѕt one exit strategy. Whаt I mean іѕ thаt wіth еνеrу offer уου mаkе уου ѕhουƖԁ know exactly hοw much уου′re going tο mаkе back frοm іt. Whether іt’s going tο give уου more аѕ a rental οr a re-sale, οr whether уου want tο renovate іt аnԁ hοw much thе expense wουƖԁ add up tο, аnԁ bу аnԁ large, whether іt wουƖԁ bе worth іt. Always rυn уουr numbers аnԁ іf thеу don’t add up tο a decent profit, ԁο nοt ԁο thе deal, nο matter hοw much уου Ɩіkе thе property, thе numbers don’t lie!

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Anԁ finally, ɡеt yourself a ехсеƖƖеnt real estate agent. Agents саn οftеn mаkе οr brеаk уουr investment business, аnԁ a ехсеƖƖеnt one іѕ сеrtаіnƖу worth tracking down. A ехсеƖƖеnt real estate agent wіƖƖ οftеn ԁο a lot οf thе leg work аnԁ bring уου ѕοmе ехсеƖƖеnt potential deals. Thеу wіƖƖ οftеn hаνе experience wіth thе area аnԁ саn hеƖр уου stay away frοm potential tеrrіbƖе investments. Thеу саn even find уου ехсеƖƖеnt, reliable buyers fοr уουr investments, аnԁ саn ѕhοw thеm around whilst уου′re out taking care οf οthеr investments. Thеу wіƖƖ οftеn work οnƖу οn commissions based οn thе sale price οf thе properties thаt thеу sell οn уουr behalf.

Real Estate Investment іѕ one οf thе mοѕt fortuitous businesses іn thе world, ѕο іt’s obvious thаt уου′ll want tο ԁο іt rіɡht. Mаkіnɡ thе rіɡht investments isn’t hard, аnԁ аѕ long аѕ уου follow thеѕе tips, уου′re sure tο bе bagging ѕοmе real property gems іn nο time.

Selecting a Real Estate Investing Guide

Many people have the desire to invest in real estate as it can be a very lucrative venture but in order to be successful you should seek the help of a real estate investing guide. Successfully investing in real estate can build your credit rating, create cash flow, and eventually net you a lot of money. But the world of real estate investing is not one that should be entered into lightly as it takes a lot of knowledge to be able to profit from real estate investing. A good real estate investing guide will help you to succeed in your real estate investing ventures. Many people who jump in to the world of real estate investing end up failing, incurring debt, and ruining their credit, all because they did not arm themselves with the proper knowledge before they started. A real estate investing guide is a great way to learn about the business before you dive and will increase your chances of success.

There are many real estate investing guides available on the market today, and you can benefit from the knowledge and advice contained in most of them. A good real estate investing guide will include the risks and benefits of real estate investing and will give you information on how to minimize the risks increase your chances for success. A real estate investing guide that does not realistically portray the amount of time and work involved in real estate investing is probably not the best choice as the world of real estate can be extremely rewarding but not without a lot of work. The real estate investing guide you choose should also give you a good idea of what to expect throughout the process and what type of loss or gain you can expect from various situations.

You should also look for a real estate investing guide that is tailored to your individual investing needs. Simply buying your first home is an investment, and reading a real estate investment guide that is designed for homebuyers looking to purchase a primary residence will help you to select a home that will build you the most equity. It is easy to learn the basics of home buying from a real estate investing guide and you will gain the knowledge you need to build your credit and maximize the equity in your new home if you read one prior to buying.

There are also many other types of real estate investments, and all have unique risks and benefits and should be approached differently. It is important to pick a real estate investing guide that is written with your unique needs in mind so that you can learn about the specific investment type you are interested in. Flipping real estate is much different than investing in a duplex or apartment building, and buying land or an empty lot is different still. After you have decided which investment type you are looking to explore, you should then pick a real estate investing guide that will teach you about your specific type of investment. A good real estate investing guide will help you to understand everything you need to know about purchasing properties, working with tenants, making improvements and renovations, and determining the value of the property as well as estimating its future value.

Credits: http://www.alborronchos.com

Real Estate Investing Dangers ? Warning!

Unfortunately, many investors get very excited about the notion of becoming extremely wealthy through real estate investing in a specific market. They assume because they live in the city, they know the market well, where they assume that real estate investing – like using techniques known as “house flipping – is a simple procedure that anyone can do and get incredible amounts of money for. Unfortunately, some real estate investors move from another successful job or business into real estate investing and make a number of mistakes that can cost them dearly. This leads investors into multiple foreclosures, and even bankruptcy.

A recent article in the San Francisco Chronicle points out that speculators who enter the market hoping for real estate investing miracles with no real plan for profitability have contributed to the Bay Area’s subprime loan woes. In many cases, these investors bought properties casually and without careful forethought, buying frequently and often with no money down. They were speculating that the prices would continue to rise, giving them an instant classic. However, when the markets began to drag and the prices went downward, keeping up with mortgages on multiple properties and dealing with properties that have no buyers resulted in foreclosures.

As the San Francisco Chronicle article points out, a key problem for real estate investors is lack of solid real estate investing knowledge. Many investors assumed that they knew what they were doing or assumed that multiple properties without the capital to back them was acceptable. When the market was good, even investors with less investment savvy made money. When the market started to struggle, however, these investors did not have the real know-how to make their real estate investing business work.

According to the San Francisco Chronicle, the other problem that many of these investors encountered occurred because they tried to succeed on their own. Many of these investors simply snapped up properties on their own when the market was good, without developing a good business team or network. Successful investors – those who are still house flipping for good profits in a difficult economy – have teams and networks that help them. You should, too.

Others can help you find the best real estate investing bargains, financing, renovation materials, and more – everything you need to make your real estate business a success story.

One place where teams are important is at the buying stage, for example.

Every property you buy must be carefully looked over by a professional you trust. Just because the property is at a bargain price, that does not make it a bargain. That’s why you should have an assessor look over the property to tell you the true market value of the home, and you should have an inspector look the property over for hidden problems such as buried oil tanks, asbestos, lead paint, and other common problems that are not apparent even to the experienced real estate professional.

Although the San Francisco Chronicle article does not mention it, some savvy investors do question the role television plays in misinforming new investors. Current reality shows sometimes make flipping seem very easy. Smart investors know that real estate investment is simply not what you see in television. Like any business, real estate investing takes know-how, research, and work.

If you’re determined to make a fortune investing in real estate by flipping or buying distressed properties and reselling them a profit, the first step often begins with choosing the right type of property. While television shows may suggest that the real work and the real profitability comes after the initial purchase, when bathrooms can be cleaned out, yards can be redone, and living rooms can be redecorated, the reality is that successful real estate buys begin with a bargain. You simply will not make as much money on a real estate deal if you pay too much for the house up front.

House flipping begins not with selling for a profit, but with buying for a profit. This is called “value investing”, and anyone looking to begin investing in real estate to make lots of money and create monstrous wealth should keep this in mind.

After all, the more money you can save on a quality home in a good neighborhood, the more profit you stand to make eventually. In fact, if you buy the right property you may not need to put up with the hassle of renovating, upgrading, and otherwise making over a home. An investor or even homebuyer may be willing to buy a property from you as is after you’ve found a great deal. You can literally make tens of thousands of dollars on the deal without putting a sent into the property itself.

Credits: http://www.alborronchos.com

Give Me Ten Minutes and I’ll Make You Better at Real Estate Investing

Okay, ten minutes is a guess. You might absorb what I have to say and thereby become better at real estateinvesting in less time if you’re a fast reader.

Shall we get stared?

Acknowledge the Basics

Real estate investing involves acquisition, holding, and sale of rights in real property with the expectation of using cash inflows for potential future cash outflows and thereby generating a favorable rate of return on that investment.

More advantageous then stock investments (which usually require more investor equity) real estate investments offer the advantage to leverage a real estate property heavily. In other words, with an investment in real estate, you can use other people’s money to magnify your rate of return and control a much larger investment than would be possible otherwise. Moreover, with rental property, you can virtually use other people’s money to pay off your loan.

But aside from leverage, real estate investing provides other benefits to investors such as yields from annual after-tax cash flows, equity buildup through appreciation of the asset, and cash flow after tax upon sale. Plus, non-monetary returns such as pride of ownership, the security that you control ownership, and portfolio diversification.

You’ll need capital, investing in real estate does have risks, and investment real estate can be management-intensive. Nonetheless, real estate investing is a source of wealth, and that should be enough motivation for us to want to get better at it.

Understand the Elements of Return

Real estate is not purchased, held, or sold on emotion. Real estate is not about love; it’s about a return on investment. As such, prudent real estate investors always consider these four basic elements of return to determine the potential benefits of purchasing, holding on to, or selling an income property investment.

1. Cash Flow – This is determined by the amount of money collected from rents and other income less operating expenses and loan payment. Furthermore, real estate investing is all about the investment property’s cash flow. You’re buying income stream, therefore be certain that the numbers you use to calculate cash flow are truthful.

2. Appreciation – This is the growth in value of a property over time, or future selling price minus original purchase price. The fundamental truth to understand about appreciation, however, is that real estate investors buy the income stream of investment property. It stands to reason, therefore, that the more income you can sell, the more you can expect your property to be worth. In other words, make a determination about the likelihood of an increase in income and throw it into your decision-making.

3. Loan Amortization – This means a periodic reduction of the loan over time leading to increased equity. Because lenders evaluate rental property based on income stream, when buying multifamily property, present lenders with clear and concise cash flow reports. Properties with income and expenses represented accurately to the lender increase the chances the investor will obtain a favorable financing.

4. Tax Shelter – This signifies a legal way to use real estate investment property to reduce annual or ultimate income taxes. No one-size-fits-all, though, and the prudent real estate investor should check with a tax expert to be sure what the current tax laws are for the investor in any particular year.

Do Your Homework

1. Form the correct attitude. Dispel the thought that investing in rental properties is like buying a home and develop the attitude that real estate investing is business. Look beyond curb appeal, exciting amenities, and desirable floor plans unless they contribute to the income. Focus on the numbers. “Only women are beautiful,” an investor once told me. “What are the numbers?”

2. Develop a real estate investment goal with meaningful objectives. Have a plan with stated goals that best frames your investment strategy; it’s one of the most important elements of successful investing. What do you want to achieve? By when do you want to achieve it? How much cash are you willing to invest comfortably, and what rate of return are you hoping to generate?

3. Research your market. Understanding as much as possible about the conditions of the real estate market surrounding the rental property you want to purchase is a necessary and prudent approach to real estate investing. Learn about property values, rents, and occupancy rates in your local area. You can turn to a qualified real estate professional or speak with the county tax assessor.

4. Learn the terms and returns and how to compute them. Get familiar with the nuances of real estate investing and learn the terms, formulas, and calculations. There are sites online that provide free information.

5. Consider investing in real estate investment software. Having the ability to create your own rental property analysis gives you more control about how the cash flow numbers are presented and a better understanding about a property’s profitability. There are numerous software solutions to choose from online.

6. Create a relationship with a real estate professional that knows the local real estate market and understands rental property. It won’t advance your investment objectives to spend time with an agent unless that person knows about investment property and is adequately prepared to help you correctly procure it. Work with a real estate investmentspecialist.

There you have it. As concise an insight into real estate investing as I could provide without boring you to death. Just take them to heart and you should be fine. Here’s to your investing success.

Credits: James Kobzeff i

Choosing the Right Real Estate Agent

Buying or selling your house is one of the most important financial decisions you will have to make. It is very important that you think it through first before deciding.

You can either buy or sell the house yourself or you can hire a real estate agent to do the work for you.

What is a Real Estate Agent?

Real estate agents are salespersons. They are licensed people who work to negotiate and manage real estate sales.

Choose a Good Real Estate Agent.

People usually use real estate agents to sell their house instead of buying one. You basically do not need a real estate agent when you are buying a house but they can be helpful if you are interested in looking for a specific kind of house. A good real estate agent can spend a lot of time in the field to look for a house that you specified.

Before hiring a real estate agent, keep in mind that there are good real estate agents that are willing to work with you and there are the bad real estate agents that are only interested in your money.

You should also interview real estate agents in person to get the feel if you are comfortable with them or not. Personal interviews can determine if they are serious about the business or just in it for the money.

Try to get recommendations first from family and friends, and then locate their recommendations to set up your interview. You can also look for real estate agents in the internet.

Good real estate agents are committed people who try their best to get you the best deal possible. They should advise you about the real estate laws and tell you about the neighborhood the house you are buying is located. They will usually include details like schools, parks, malls, church and more essential for people’s everyday lives.

Credits: http://www.g5n.org

Trends In Real Estate Investing

Real Estate Investing In a Down Market 

Timing may be everything, but is now the right time to invest in real estate, given the steep declines seen in the housing marketing in recent months?  Some real estate investment professionals seem to think so.  In fact, the smart investors are buying, buying, buying properties right now.  Why? 

“First, let’s define what we mean by “investing,” says real estate mentor and author Minh Pham, whose popular real estate seminars pack convention rooms with novice real estate investors eager to learn how to make money with real estate.  “Are you intending to be a knowledgeable, well-educated buyer of under-priced properties and stay in the real estate market for the long term in order to see excellent returns?  Or are you looking for a ‘get-rich-quick’ scheme?  If so, my real estate seminars are not for you.” 

Pham explains that buying a cheap property in the hopes of immediately reselling for a lot more than you paid is speculating, not investing.   And speculating is as risky as buying a lottery ticket.  No credible real estate investment coach will teach you how to speculate, because there is no way to guarantee profits. 

But that doesn’t mean you can’t start seeing profits in a fairly short space of time – you just need to know what you are doing.  

Becoming a successful real estate investor involves getting educated, doing excellent research, and putting together a well-thought-out strategy.   This may seem like homework to some, but for those who have done it the financial rewards are more than making up for the time spent learning.   

“Can you make money in real estate in a down economy?  Absolutely.  Can you do it without knowing what you are doing?  Absolutely not,” says Pham. “Worst case scenario, you could lose thousands of dollars and end up being very disillusioned, as many people are right now as a result of not really understanding what they were doing.  There are rules to any game, and if you don’t take the time the learn them you could lose your money.” 

According to Pham and other real estate investing experts, in order to be successful it’s important to learn how to make money in both ‘up’ and ‘down’ markets. You need survival strategies for when the economy is bad, and know how to win in a competitive market when the economy is booming.   “Don’t fear the competition – embrace it,” advises Pham.  “If you see a lot of investors competing for deals, then know you’re not the only one that sees the potential for profit.  There are more than enough good deals to go around. At any given time there are hundreds of properties for sale in local market niches, enough for every savvy investor to make the profits they’re looking for.  

Even in today’s uncertain climate, novice real-estate investors are making money, especially in smaller properties that are easy to acquire and manage.  Owning property that pays for itself is what it’s all about.  But how do you find those kinds of properties, and how do you recognize them when you do?  “Ah, you’ll have to come to one of my seminars,” grins Pham.   

Credits: Minh Pham

3 Key Sources to Locate Private Money to Purchase Investment Real Estate

Being a real estate professional in the Metro Detroit area, I'm constantly asked "Scott, can you find me a deal?" 100 percent of the time my answer is 'absolutely I can within 24 hours'. Then I add asking 'do you have a source of money to be able to close the transaction and purchase the real estate deal I've found you quickly?' More times than not I catch them with a blank stare on their face and not knowing what to say.

All across the United States there is plenty of 'deals' to be had, but with the lending restrictions that are being put out there and the competition to acquire these great deals, it's virtually impossible to build wealth through real estate without having different sources of money on hand to get the deals closed.

My easy answer to this is 'private money'. Again, I reiterate that it is my easy answer. The harder part of the equation for most people new to real estate investing is how to acquire the money.

My quick synopsis is three key sources that I have directed my clients towards to start on the path of investments that will be profitable.

1. Family Members

I know what most people will say here is that they do not want to mix business with family. And truthfully that makes for a good argument, but I have also found that most arguments are based on not having anything to put the family members mind at ease knowing that they will get a return on their investment and much less getting back the initial investment itself. What's great about private money in real estate is that the money lent is secured by the real estate itself, which in turn will give your family member a little peace of mind.

2. Financial Advisors

Many people play it 'safe' and put their money with their financial advisor. But like some people that I know as their 'nest egg' starts to grow they get the itch to put their money in 'play' in another sector and they start bugging their advisor for options. I would recommend contacting financial advisors and letting them know you are a seasoned investor and if they have any clients that have monies that they would like to invest and have it secured with real estate. You would be surprised at how many will sit and listen to you.

3. Real Estate Investor

You read this and think, wait a minute aren't they my competition? And my answer is absolutely, but they are also in the business of making money. And the best part of this source is they already know what they are looking at in terms of if the deal is going to make sense. There is a caveat to this in that the interest rates may be a bit higher, but if the deal is 'juicy' enough then it will be a win-win the whole way around.

There you have three sources that you can use to locate private money to help you through your real estate endeavors. Every client I have that takes their business seriously, I tell them to start there. And soon enough they will be the one being approached to invest in someone's deal.

Investing in real estate is not as hard as many people make it out to be. You can only do so much with banks then you will have to look for other resources. You must include private money into your strategies to become an ultra successful real estate investor.  

Article Source: http://EzineArticles.com/?expert=L._Scott_Ferguson

How to Eliminate Risk in Real Estate Investment! Avoid 12 Common Mistakes Made by Novice Investors and Ensure High Rates of Return!

Real estate investment has provided many investors with positive cash flow, tax benefits and satisfaction of making an impact in others lives. Like any investment however, real estate has intricate nuances and market trends that when ignored can cause an investor tremendous heartache.

Unbelievably many first time investors are willing to part with their hard earned cash without taking the time to study their investment. They rely on traditional trends and gut feelings. Before you risk your investment take the time to learn all you can about your market. By aligning yourself with the right Professional you can avoid these 12 common mistakes, and you’ll ensure an excellent return on your investment.

1. Failure to Determine Your Time Need – Cash flow, capital appreciation, tax benefits, loss of management, equity pay down and pride of ownership are just some of the thing s that need to be addressed before you make that investment. A service -minded real estate professional can be a tremendous asset by taking the time to evaluate your needs and making sure you’ve got all your bases covered.

2. Not Checking out the Seller or Sellers Agents Numbers – Claims of extremely high rates of return run rampant in real estate investment. Don’t get caught up in the excitement – check everything: rents, payment history, taxes, expenses, deposits, future modifications… everything. Make sure you have the right agent…it’s like having a good insurance policy against overlooking all the seemingly insignificant but very important details.

3. Forgetting You Are Buying a Business - Owning investment property carries with it a great potential for creating wealth and… some potentially difficult decisions. Evictions, re -investment into the property and time management all needs careful consideration. Remember this is not a ‘hands off ‘business.

4. Avoid Negative Cash Flow – Property that eats cash every month can drain your working capital. This can create stress, frustration and become quite painful. Predicting constant appreciation is extremely difficult if not impossible for the unseasoned investor. A strain on your cash flow may cause you to sell the investment before the benefits of ownership are ever realized.

5. Failure to do a Thorough Inspection – Look under every rock! Hire a professional inspector. Ask the tenants about pest problems, structural damage or reoccurring problems. Don’t overlook anything! A value driven real estate professional will help you find the right inspector and can help you avoid costly mistakes. When investing your hard earned money be sure and use sound business judgment!

6. Failing to Have Adequate Insurance – Investment property brings liability. Tenants, cars, parking lots, cleaning facilities, and property liability – the list is quite extensive. Adequate insurance coverage is an absolute must! Be sure to consult with an insurance professional and protect your hard earned assets.

7. Inspect, Approve, and Confirm All Documents – The list of documents that need to be proofed can be overwhelming to the first time investor. Building permits, zoning laws, rental and lease applications, CC&R’s, by-laws, title policies, inspection reports, purchase contracts, insurance.. Don’t attempt to do it alone. The right professional can remove most of the stress and bring the transaction to a conclusion smoothly.

8. Get a Bill of Sale For All Property Involved – Many types of personal property can be involved in an investment sale. Be very detailed -know who owns what!

9. Charge Fair Rents – Vacancies, turnovers and lease terminators are your biggest expense. Charge fair rents, treat your tenants with respect and respond as quickly as possible to their needs. It’s a lot less costly in the long run to take care of the little problems before they become big problems. Vacant property is your Achilles heel.

10. Select Qualified, Good Tenants From t he Start – Take the time to check references. Previous landlords, employers, financial references, credit and judgments are all vitally important. If there are any questions–do a thorough investigation. Drive by their previous residence. A little work up front can save tremendous problems later.

11. Make Sure You Get Estoppel Letters – Get letters from tenants confirming the status of tenancy. Make sure their version of the rental or lease agreement corresponds with the seller’s interpretation.

12. Don’t Spend Positive Cash Flow – Most of successful investors have free and clear properties. Be sure to re-invest your cash flow back into the property payment and speed up the amortization schedule. This decreases your debt load and increases your eq uity, which builds your net worth. Investment property can be one of the most rewarding aspects of your financial portfolio. Be certain to have all your ducks in a row before you invest. Do your homework! Consult with a professional real estate investor and protect yourself from the hidden troubles that can plague first time buyers.

We hope this brief report has been of value to you. It is our ultimate desire to help you achieve your real estate investment goals and provide you with the most profess ional, efficient and effective service possible!

Credits: http://www.financemoz.com