A Real Estate Broker’s Share

As a real estate investor you will first need to buy a home or homes. Part of being a good investor is being able to value a property to determine if there will be a profitable return. You will need good enough credit to obtain the home in the first place and enough left over money to fix it up so it can be resold or rented. This may take both time and money. These costs need to be factored into the sale price of the home.

If you plan on flipping the home, the trick is to find a home that is in need of repair and purchase it for a bargain. However, the costs of the repairs need to be weighed and the value of the home after repairs needs to be determined. For a first time real estate investor it may be better to find a home that only needs minor, cosmetic repairs. This can be a fast and inexpensive fix and can add significant value to the home. You will also have to determine if the house can be sold quickly at a lucrative enough profit margin to be worth the time and effort.

If you plan on renting the house, some of the same concerns should be considered. There will need to be a commitment from you as the investor to be a good landlord to tenants which is not always easy and takes time. Also, repairs will need to be made over time and financial issues such as a vacant house and non payment of rent needs to be considered before taking that route. A real estate investor can make a lot of money on property as long as all the risks are weighed and smart decisions are made.