Deciding to Buy

When that time comes that you are ready to buy real estate, you feel the greatest positive energy to pursue something new. However, whether you are an experienced investor or a first time investor, that energy that you feel is often mixed with anxiety and anticipation. At the very least, minimize the anxiety so that you can enjoy more of the energy. Here are some steps that you can take to give yourself a better chance of a successful purchase:

Study Your Target Market

Although we will give you the best advice possible, doing some preliminary research and getting informed will actually cut down on your time for site selection. Sometimes that initial research will really help to determine if in fact now is the time for you to enter as Buyer. Among the questions that you should ask yourself are: Is now the time for me to buy? Is my family ready to make this investment with me? Do I have enough reserve capital to withstand a market change? Will today’s leverage opportunities help me to succeed in the next three to five years?

Know Your Financial Position To Buy

After conducting some preliminary research and deciding to work with us, you will begin shaping a realistic rate of return (your target percent!) according to current market conditions. Take that percent goal that you have to buy and find how much you can leverage by getting a pre-approval with a lender. Whether you are buying in cash or getting a loan, calculate that percent that you want to spend to buy and what you would need leftover for renovations and the unforeseen.

Expect The Unexpected

After some time of viewing properties and maybe placing a few bids, you are under contract! Some of that anxiety is lessened but don’t let up! As part of your due diligence, it is time for you to verify the figures, inspect the building, and test your nerve. If something unexpected arises during your due diligence/inspection period, what would be best course of action? Continue, negotiate, or walk away.

The Financing Process

Once your time for due diligence has passed, and you have agreed to continue with the transaction, your focus now is on the Lender. That pre-approval you had received prior was only the first step, and in fact no guarantee that a loan will be forthcoming. Surprised? Well, there are steps that you need to take to ensure that loan comes through for you. Being budget conscious is so important when you are on a Lender’s radar. An unintended change in your credit or financial position could lead to unexpected turns in receiving that approved loan.

Title Inspection And Closing

Usually but not always the case, obtaining title insurance on your property purchase should be the easiest step in the buying process. By the time you reach closing, if all the other steps were taken with great attention to detail and planning, you could then display jubilant expressions of joy. Take a short break to relax because the real work begins to grow your investment!