Real estate investment in Miami real estate is now becoming popular again as there are many properties in foreclosure, short sale, reo banks, and foreclosures of government. With such an enormous number of affordable homes for sale a real estate investor needs to be able to decide which one to purchase. Investors must follow six steps to read, understand, and achieve productive investments in Miami real estate.If you wish to learn more about this, visit Influence Print NYC.
These are the six L steps for an investment in Miami real estate:
1. Location-Location, location, location is the key to the purchase of Miami property. Buying Miami real estate simply because the price in a declining area is low is a big mistake to avoid. Search for homes in a great location like, good schools, economic stable and growing communities, close to shopping centers and malls, close to bus stops and subway trains, close to hospitals and restaurants. Sometimes it is better to pay a little more for a property in a good location than to have a bargain in a place where the asset is very difficult to sell or rent. Location is often overlooked in buying real estate as many investors think if the price is low enough they can overcome a bad location. The one in the best location will command a much higher selling price and rental income from two homes that are exactly the same. Location is consideration of the number when buying real estate in Miami South Florida.
- Long Term-Investing in real estate is a long term plan. Don’t think you’ll be a millionaire over night. For it to succeed it takes years of hard work and commitment. Hold, at least one year before selling any property. Taxes on the capital gain will be considerably reduced. Consider renting the property for 2 to 3 years. The created rental income will help you better repair and renovate the house. Most buyers were buying properties in the midst of a real estate boom with no down payment and no equity. Such buyers talked about easily flipping the homes and making a killing in the process. Most homes now in default are due to buyers caught in the middle and now know that investing in real estate is very difficult. Long-term investment in Miami real estate is the path to a successful career in real estate.
- Lease Option-Never rent a property with the option to buy the land. Just sell it straight out, or rent it. A lease option is usually a nightmare for buyers and sellers alike. The owner would require a large rent discount to go to the down payment and closing costs. The downside is that at the end of the lease, the owner won’t buy the property and the landlord / seller will have wasted a lot of money on the tenant / buyer rebates. Demand a 20 per cent or 30 per cent deposit from the tenant / buyer and a clause in the contract that they will lose the deposit if they default on the purchase. This technique will force the landlord / buyer to buy the property or lose the deposit. The risk of losing the deposit would preclude the occupant from taking advantage of the landlord despite earning a monthly rental discount by walking out of contract.
- Local-Buy real estate near your place of residence. Do not buy immovable property in another state or country. Keep investing in local real estate. Buy from your own county, and from your city. The more you know about the area you are buying, the better that will be the decision. The buyer should always be close to the property for the investment. Miami real estate investor should frequently inspect the property to determine any repair, roof, and other issues. When collecting the rent the landlord has to inspect the property every month. Check the number of people actually living in the house, check for vandalism and deterioration of the property and the place’s overall condition. If it is situated far away, the investor / landlord will not be able to inspect and assess the condition of the house. Maintaining local real estate is an essential step toward investing in real estate.
- Leverage-Most books and seminars about real estate tell you to use other people’s money when buying property. This strategy isn’t the best and if possible buyers will try to purchase the property in cash. Buying a cash house will help you get a better deal, and enable you to negotiate from a strong position. While dealing with banks, property owners, and other buyers, a cash buyer will always have the upper hand. Cash buyers won’t suffer and go into bankruptcy if the market turns and they just can’t sell or rent the house. As Dave Ramsey says “money is king and debt is dumb” Buying an investment property in cash is an excellent way to avoid mistakes in Miami’s real estate investment.
- Know-Research the property before you buy, and know everything about it. A mistake about investing in Miami real estate can be very expensive. Normally if you buy not when you sell, you make your money. Buying the property at the wrong price could be counterproductive to the wrong place and at the wrong time. One mistake might get you wiped out and put you out of business before you start. Ask the experts, real estate agents, appraisers, mortgage brokers, and other property investors for feedback. Know, read, educate yourself before you buy the asset on all aspects of real estate investing.
In Miami-Dade County it is certainly a buyers market. When it comes to real estate investment, Miami real estate investors have more choices than ever before. Investors must follow the steps of the L, the six steps real estate investor guide to successful real estate investing to achieve their investment goals in the Miami real estate market.