Have you been thinking about buying real estate as an investor?  Make sure you do your homework and talk to people who’ve been through the process.  It could be a positive, worthwhile experience, but it could also turn into a nightmare!

Well known Real Estate Lawyer, Author and Speaker, Mark Weisleder, has some helpful tips for you.

1. Are you pre-approved?  Make sure you meet with your banker or mortgage rep to get a clear picture of how much you can afford to put into an investment property and look at worst-case scenarios.

2. The general idea is to generate more income from tenants than you pay out in a mortgage payments, taxes and insurance, so make sure you keep that in mind when looking at properties.  Consider the true potential for each place and budget an extra 10% for small repairs.

3. Enlist the help of an experienced realtor.  Look for ones who deal mostly in investment properties so that you can benefit from their experience.  Tell them exactly what you’re looking for and they’ll guide you in the right direction.  They have a vested interest in your success so that you’ll use them again!

4. Make sure you hire a home inspector!  You need their unbiased eye and expertise.  It might also be a good idea to hire a reputable contractor to have a look at any minor repairs that need to be done.  Make sure you know if there needs to be some renovations and make sure the job gets done right, or you’ll be paying over and over again to fix it.

5. Make an appointment with your accountant and your lawyer.  It’s good to keep everyone in the loop in case they think of pros and cons that you overlooked.  Getting them on board at the beginning of the process will help you avoid costly errors on your taxes or with liability on the property. Extra care and time at the start will help you avoid unexpected expenses or legal consequences down the road.

Many people do very well with investment properties and by taking the time to fully investigate the venture right from the start will help you be successful, too.

Come back next week for the remaining five tips from Mark Weisleder.  Feel free to have a look at his other tidbits of advice at markweisleder.com

Contact John Weber from the Weber Team anytime at 705-727-6116, or Christie Bond from the Weber Team at 705-220-1152.