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..."
You know the ins and outs of building. You can visualize possibilities for rehabbing a run-down property in an instant. You have an intuitive sense of style and are quick to see what will work in a given location. You can quickly estimate costs and you know how to strike a bargain without sacrificing quality.
It's easy to be successful builder or developer these days in Washington, D.C., right?
Well, maybe not so much, unless you also know how to secure the development loans and construction financing you need. Unless you're either very lucky or very experienced, finding the right source for construction loans in Washington D.C. can be a major hurdle.
Each year hundreds of thousands of new homes are sold within the United States. Whether a Real Estate investor is interested in purchasing a home in need of renovation or chooses to buy a vacant lot, he or she will have to decide how they are going to finance their investment. Fortunately there are a number of ways to successfully finance Real Estate investment.