How To Start Investing In Real Estate, Part 3
How To Start Investing In Real Estate, Part 3
Have you been wanting to join the San Jose real estate market, but you’re just not sure what the process looks like?
There are many houses for sale in San Jose, and 2021 is looking like a great time to join the real estate market.
Bluefin Realty knows that real estate investing can be overwhelming if you’re a beginner, so today we want to continue to walk you through the steps.
Follow the guide we have given in this three-part series and you’ll be on your way to successful real estate investing in no time!
How To Finding Investment Properties
So far we’ve covered the pros and cons of buying rental properties and houses to flip. We’ve also discussed the pros and cons of real estate investing itself.
Today we will talk about how to find the perfect properties that fit your goals.
1. Set Money Aside
You should have a nice bundle of money set aside if you want to be a big success in the real estate world. Things such as down payments and renovations cost a pretty penny and it is good to be able to pay some out of pocket.
A good rule of thumb is to determine first what you can afford for a property price and then set aside approximately 20% for a down payment. While in some cases you may not need a full 20%, it’s safe to over budget. And if you are hoping to rent or renovate, having an additional fund for unexpected costs is also wise.
2. Educate Yourself
The other thing you should be doing while you prepare and save money is to educate yourself on real estate endeavors.
There are plenty of books, ebooks, blogs, and training out there on Real Estate. Make sure you have a firm grasp on the subject and know all the lingo.
Learn about where to find real estate properties, and how to make good deals and close. When you come into the industry well equipped and knowable you will do much better than those who have little education in the area.
3. Get Pre Approved
In order for sellers – and real estate agents – to take you seriously you need to get pre approved for a loan. The pre approval process is fairly simple.
Find a mortgage or lending company you trust, provide them with documentation of your income, credit, assets, and expenses, and then discuss your goals. You’ll then be provided with a pre approval amount, and your property hunt can begin.
4. Find The Right Places To Look For Properties
You can also use the newspaper, word of mouth, or a real estate agent to help you find properties. There are many open homes San Jose even amidst COVID-19 and there are many safety precautions in place so that you can view homes without fear. Oftentimes the property can also be seen via a virtual tour.
5. Find The Perfect House For Sale In San Jose
Make criteria for what you consider a desirable property and then use the different search engines and resources to find a property that matches your criteria (at least mostly).
Once you have found a property you love you can move on to the next step. Don’t get discouraged if it takes some time to find the right place. Good things come to those who wait!
6. Make An Offer And Close The Deal
Now that you have found the right house for sale in San Jose or a property that you desire to purchase you can make an offer. If your offer is accepted you get to close the deal.
How To Select The Right Realtor
Working with a great real estate agent can make all the difference in your real estate investment goals.
When you are searching for an agent/agency to work with make sure you meet with at least three agents so you can compare and contrast. You should also make sure to ask the right questions and get a referral.
Make sure they seem competent and that you agree on the important things.
At the end of the day, if you’re looking to sell your South Bay area home, you won’t find a more trustworthy or experienced agency than Bluefin Realty.
With countless sales made, and a deep knowledge of both the market and the area, Marc takes the time to listen and understand your goals, while ensuring your sale runs as smoothly and as quickly as possible.
The advice and guidance Bluefin can provide from early inquiries, to closing day, have helped put hundreds of their satisfied clients at ease throughout their home buying or selling journey.
What To Look For In A Good Investment Deal
When deciding if a property is a good real estate investment look at:
- Is the location going to be profitable?
- What are the repair costs?
- Is the listing price reasonable?
- What would your annual income be?
- Is there a good cap rate?
Ask yourself questions like these to help decide if it’s a good investment deal.