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Oleg
Potemkin (RA) Hawaii Realty Associates, LLC
Honolulu, Oahu, Hawaii
Direct:
(808) 398-9987 Fax: (808) 538-8081 E-mail:
info@hawaii-realty.com
10
Important Tips to Successful Real Estate Investing
When it comes to investing,
everybody has certain goals and aspirations.
However, I have found that there are certain guidelines every
aspiring real estate investor needs to know
1. Compare Property Values and
Rents
Financial statistics only go
so far; the best measure of a property's market
value is often the sale prices of nearby properties. The same
holds true for area rents. A low price
can often be justified by a reasonable
rent; renters who can afford a high rent can afford to buy instead,
so reasonably priced rent is a need.
2. Be careful - Tax laws may
change
Don't base your tax investment
on current tax laws. The tax code is constantly
changing, and a good investment is a good investment regardless
of the tax code. The right property with the right financing
is what you should look for as an investor.
3. Specialize in something you
Know
Start in a market segment you
know. Whether you focus on fixer-uppers, foreclosures,
starter homes, low-down payment properties, condominiums,
or small apartment buildings, you'll benefit from experience
by specializing in one aspect of investment real estate properties.
4. Know the Costs going in!
Know the financial statements
inside out. What are operating expenses? What
are loan payments? Vacancy costs? Taxes? What does the cash flow
statement look like? These are key
issues that must be addressed before
making a solid investment.
5. Know where your tenants are
coming from
If the last rent increase was
recent, your tenants may be considering a
move. If tenants have a short-term lease, they may be living there
simply to attract unsuspecting buyers.
It is also important to collect the
tenants' security deposits at closing.
6. Assess the tax situation
Taxes are an integral part of
successful real estate investing, and they
often make the difference between a positive cash flow and a negative
one. Know the tax situation, and see how it can be manipulated
to your advantage. It may be a good idea to consult a tax
advisor.
7. Investigate insurance
coverage
If seller's coverage is based
on lower-than-current replacement value, your
insurance cost may increase when you pay a higher purchase price.
8. Confirm Utility Costs
Ask the local utilities to
verify recent utility expenses, especially if
any of these costs are included in your tenant's rent.
9. Consult Your Accountant
Taxation is a key element of
successful real estate investing, so be sure
to find an accountant who is well-versed with the constantly evolving
tax code.
10. Inspect!
Make sure that you always
perform a thorough inspection of the property
before buying it. Never, ever buy any property without at least
examining the site. In some cases, hiring professional inspectors
to examine the structural mechanical system may be a sound investment.
Thanks for visiting!
About the author: the
author of this article is not known. Article reprinted courtesy of
Total Real Estate Solutions http://www.totalrealestatesolutions.com
Excellent
Service, Outstanding Results!
Oleg Potemkin (RA) Hawaii Realty
Associates, LLC
Ali'i Place, 1099 Alakea
Street, Suite 1520, Honolulu, Oahu, HI 96813
Direct: (808) 398-9987 Fax:
(808) 538-8081 E-mail: info@hawaii-realty.com
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