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I like this house and I’m going to buy it!...Then again, maybe I won’t.

12 Simple tips to avoid Buyers Remorse

12 Simple tips to help avoid Buyers Remorse.

Perhaps you are a first-time real estate investor, or first time home-buyer and you didn’t realize how overwhelming the process of shopping for a property can be. It doesn’t need to be. If you make the best investment strategy (fix/flip, fix/hold, options, vtb’s, etc.) with your property of choice, all of your efforts will most likely be rewarded. Don’t be discouraged by our continuously changing market, instead work through it patiently. Let’s take a look at 12 ways you can reduce the stress and anxiety of finding the right investment property.

  1. Do your homework. With the wonderful world wide web at your fingertips, there is a vast amount of information you can research before leaving the comfort of your own house. Find credible websites that you can use to research locations, communities, transportation, planning developments, crime rates, and other key information that helps you to determine the best location.

  2. Know your numbers. You know your financial situation better than anyone else. Affordability. the ability to carry, and cash flow, are critical issues that you must understand before embarking on any venture. Do the math.

  3. Get Pre-approved. Although you may believe that you are financially capable of taking on the responsibility of a mortgage, the mortgage lender may not agree. There are many variables to consider when it comes to buying a home. Use online mortgage calculators to help you make sense of it all.

  4. Have the Right Team. Once you have figured out whether or not to go for it, get the right team in place: Real Estate Agent, Mortgage Specialist, and Property Inspector. Each one plays a critical role and is key to your success.

  5. Your Real Estate Agent can either help you or hinder you. First and foremost, it is important that you have a good rapport with your agent. He/she must have a good understanding as to what you are trying to accomplish and present you with opportunities that fit. As an investor, a good property isn’t always about how well it shows, instead you need to consider the return on investment you can earn. If your agent doesn’t understand this…find another one.

  6. A good Mortgage Specialist needs to be there to help you when you enter into that nerve-racking crunch time. Even though you have already been pre-approved 3 months ago, there is no guarantee that you will be approved today. Your mortgage specialist should have the knowledge to be able to put your deal back together if it had fallen apart. Don’t be left alone standing and scratching your head wondering why it didn’t go through. Use an accredited Mortgage Broker.

  7. Inspect it. Unless you are purchasing a new construction, a qualified Property Inspector should be your best friend. When purchasing an older home, repairs are most likely inevitable. The question to ask is how much repair work are you able to handle. Knowing all the pros and cons of a property can also help you to negotiate for a better deal.

  8. Strategize. Consider all the possible pitfalls, obstacles, and problems that could occur and develop a “worst case scenario” plan. When it comes to real estate investing, don’t get discouraged, get creative and remain motivated.

  9. Capital. Whether you are using your own capital, other people’s money (opm), or a combination of the two, make sure to have enough capital necessary to cover all closing costs, property taxes, utilities, financing charges, repair/renovation costs, maintenance and management fees, and reserve funds. Don’t get overwhelmed by the variable and fixed costs involved in owning an investment property, remember the big picture: your return.

  10. Return on Investment. The formula: ROI = Gain – Cost / Cost is used to determine the quality of an investment. The higher the ROI rate the more profitable your investment is. If you have various investments, even in non-real estate areas, you can use the ROI formula to compare and see what is giving you the most bang for your buck.

  11. Appreciation. It is important to appreciate appreciation. Unlike most other types of investments, Real Estate, in the right markets not only yields you monthly cashflow, but also increases in value over time. Usually when you hold a property for a number of years, as the market permits, it’s increase provides you with higher equity and overall net worth. Be patient.

  12. Maintenance. To be able to command top resale value in a competitive market, your property needs to be well maintained. With regular cleaning routines, minor repair work, major upgrades or renovations, your property can improve over time with regular and necessary maintenance. It is the smaller routine maintenance and upgrades that often eliminate major or extreme makeovers when it is time to sell. Regardless if a house is tenanted, vacant, or owner-occupied, there is no need to neglect the small stuff. Consider 12 Gates Property: Cleaning, and Preservation Services: routine property maintenance services designed to protect your property and minimize financial loss. Contact us today!

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