Insider View: What Real Estate Professionals Know
Successful real estate investors have the knowledge and know-how to select properties that are good investments. For investors that have just entered the market, this can seem like a daunting task.
This article helps break down the top five things every professional real estate investor knows.
- Local Pricing – Successful investors are fluent in the latest market trends. They know what areas offer price acceleration, where real estate demand is hot and what prices are low, fair or smoking hot. Real estate agents, local newspapers and even courthouses that record property deeds are great sources of information, offering insight into current property values.
- Catalyst – Up and coming areas are often highlighted with new infrastructure developments. In areas where new schools and roads are being built, this is a sign to many investors that community growth will follow. Investing in communities that will be embracing new shopping centers offers an opportunity for lower initial tax rates. Development spotting is as simple as paying attention to details, such as land being cleared, survey crews, widening traffic lanes, new traffic lights, etc. Investors can also visit city hall, as building and road departments are aware of new projects.
- Taxes – If two nearly identical towns are side-by-side, the one that has higher property taxes will have less demand than the town that offers lower tax rates. Real estate investors can contact local tax assessors to inquire about tax rates, including if reassessments are projected. If towns are at maximum capacity, this is also an indicator that tax rates may increase to accommodate new roadways and other major construction.
- Schools – Investors should consider school areas, as this is desirable for parents and families. Quality education is an excellent selling point for prospective buyers. This information is often available on the state board of education websites, which highlight public school rankings.
- Outskirts – All cities grow up and begin to expand into the neighboring outskirts. This means that the outskirts will soon be in demand. Real estate investors should look for outlying areas that offer close proximity to public transportation. Public transportation expansion is also a sign that an area may be in for additional growth. This information can be confirmed with local bus and transportation companies.
Investors that simply do their homework will often end up more successful than those that jump in with both feet. By analyzing hot real estate markets, investors can analyze the benefits of purchasing up-and-coming residential and commercial real estate properties.
Better Than Loans is a hard money lender that focuses on direct funding. With fast loan funding, they feature commercial building loans and apartment loans for real estate investors.
Categories: Hard Money Loans