Investing in Real Estate – What to Ask an Expert

by Sean Bryant on September 22, 2014

Investing in Real Estate

A highly experienced investor can help you to calculate your potential the return on investment from each property, teach you to find homes with features that can increase a house’s value and explain how to determine the average rent or repayments in a neighborhood. The expert will also be able to predict the costs of necessary renovations and repairs.

Selecting a Location 

An expert will help you to choose real estate that is situated near vital amenities, such as shops, restaurants and health centers, and they may find properties that include a relatively large amount of land. Moreover, the expert can identify relatively inexpensive residences that are located near the beach and popular parks.

Analyzing the Market

Experts are usually able to provide a list of nearby houses that includes the price of each property, the number of bedrooms and bathrooms that every home has, the year during which each house was constructed and the overall size of a residences. You may also be able to see a chart that indicates the historical fluctuations of the values of homes in a particular area.

Calculating the Rent

By analyzing advertisements and statistical information, you will be able to determine the average rent for homes and apartments in a certain area. The expert can also offer information about certain laws and regulations in the state that could affect your agreement with a tenant.

Helping You to Negotiate

Once you’ve chosen a property, the expert can teach you to effectively obtain a low price by mentioning repairs that must be completed and comparing the worth of the residence to the values of other houses. An expert will also help you to obtain records that show renovations that have been completed in the past.

Adding Features

The expert may suggest improvements that you can complete in order to raise the home’s value, and some of these include adding new carpets, installing a roof, placing a pool in the backyard or building a deck. Furthermore, they can offer strategies that will lower the costs of these modifications, such as partnering with a local contractor and completing renovations when the demand for necessary materials has temporarily fallen.

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Sean Bryant

Sean Bryant created OneSmartDollar.com in 2011 to help pass along his knowledge of finance and economics to others. After graduating from the University of Iowa with a degree in economics he worked as a construction superintendent before jumping into the world of finance. Sean has worked on the trade desk for a commodities brokerage firm, he was a project manager for an investment research company and was a CDO analyst at a big bank. That being said he brings a good understanding of the finance field to the One Smart Dollar community. When not working Sean and his wife are avid world travelers. He enjoys spending time with his two kids and dog Charlie.
Jayson @ Monster Piggy Bank September 23, 2014 at 3:53 am

Hi Sean, when I bought my property, I asked the real estate salesperson this “Why is the vendor selling the property?” By just knowing the answer helped me with my bargaining position. This is a fact that most of the agents don’t normally tell us why the vendor is selling. In my case, the agent gave it in.

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