The first rule of real estate investing, always know what you’re getting into. Whether that’s buying a fix and flip home or vacant land to build on, it’s important to do your homework. Buying vacant land makes the possibilities endless; you could build a custom home to live in or sell, you could sell it to a builder or you could choose to develop it on your own. However, vacant land doesn’t always mean it’s suitable for development. Here are a few things you should know (and consider) before you decide to put your money into it:
As you may know, title insurance protects real estate owners and lenders against property loss or damage that might occur because of liens, encumbrances or defects in the title to the property. A title insurance policy may seem seem like a no-brainer for a traditional 30-year mortgage, but what about a fix and flip real estate investment that you plan to be in and out of within 6-9 months?
Does a fix and flipper really need a title insurance policy?
Hard money loans are a great alternative for real estate borrowers with less than stellar credit or those who don't have enough financial history to qualify for a bank loan. That doesn't mean that hard money lenders don't conduct credit checks. It just means that your credit score is less likely to be a deal breaker. Here's why...
When you have great ideas and the know-how to make things happen, it should be easy to achieve business success. But, often that's not the case when you're just starting out. Most entrepreneurs will confirm that success can be a long time coming, and that there are many potholes and bumps along the way.
This especially rings true for small builders and and independent real estate developers who have looked at a potential project and thought, "If I only had the capital..."