| Investors who buy homes have more choices than | | | | property. These houses can be used as long-term, |
| ever before. From distressed properties to celebrity | | | | short-term or vacation rentals. Homes located in |
| mansions, the magnitude of available properties can | | | | popular vacation destinations can sometimes yield |
| be a goldmine for both novice and seasoned real | | | | more income than long-term rentals. It is important to |
| estate investment specialists. | | | | keep in mind the costs associated with rental |
| Many investors who buy homes seek out properties | | | | properties. |
| offered through foreclosure auctions. Others prefer | | | | Long-term rental homes require the ability to make |
| to invest in bank owned real estate. By taking time | | | | repairs promptly. If tenants default on their contract, |
| to research the area and network with individuals | | | | investors may have to retain the services of an |
| involved in the real estate market, investors can | | | | attorney to evict tenants or collect unpaid rents. |
| oftentimes buy houses for pennies on the dollar. | | | | Short-term and vacation investment properties |
| Investors are scouting out properties all across the | | | | require the ability to locate tenants on a regular basis. |
| nation. As a private investor, I feel there has never | | | | Homes must be cleaned after each rental period |
| been a better time to invest. History has shown real | | | | expires. Typically, furnishings and household items |
| estate is one of the most resilient investment | | | | such as cookware, dinnerware, bedding and linens |
| opportunities. Although the market is currently on a | | | | must be provided. |
| downward trend, there is little doubt it will eventually | | | | Another niche several investors are becoming |
| rebound. | | | | involved in is that of short sales. In order to avoid |
| In order to become successful with real estate | | | | foreclosure, some lenders allow borrowers to sell |
| investments, it is imperative to develop a business | | | | their home for less than they owe on their loan. |
| plan. Doing so will help you determine what types of | | | | Investors can purchase these homes for around 70 |
| properties will best suit your needs. | | | | to 80 cents on the dollar. |
| High-end luxury homes can yield a tidy profit for | | | | A small percentage of investors who buy homes |
| investors who have the financial resources to | | | | seek out probate real estate. Probate properties |
| purchase expensive real estate. | | | | include houses, commercial buildings, apartments, |
| Low-cost, distressed properties such as foreclosure | | | | condos or raw land owned by someone who has |
| or bank owned homes can provide profitable | | | | died. |
| opportunities for investors willing to rehab the house. | | | | Probate properties can be found by visiting local |
| House flipping is not for the faint of heart or those | | | | courthouses where probate matters are handled. |
| with little available funds. Rehabbing generally requires | | | | Transactions are usually handled by the designated |
| time, money and construction knowledge. | | | | estate administrator, but occasionally require court |
| Wholesaling can be profitable and requires less work | | | | approval. |
| than most other types of investment properties. | | | | These are but a few reasons real estate investors |
| Wholesaling involves buying a home significantly under | | | | purchase homes. If you are planning on investing in |
| market value. The investor then resells the house to | | | | real estate, take time to understand all that is |
| a buyer or real estate investor "as-is" for 10- to | | | | involved. Investors should understand real estate laws |
| 20-percent more than the purchase price. The only | | | | in areas where they plan to purchase homes, |
| work required is locating a qualified buyer. | | | | become aware of various financing option, and obtain |
| Some investors buy homes to be used as rental | | | | a thorough understanding of their chosen market. |