Investing in real estate can be one of the smartest things you do to secure your financial future. At GEO Real Estate, we offer many services to help investors build their real estate portfolio. Our goal is to represent your interests in a real estate transaction, whether it is a residential or commercial property, and provide you with an analysis on each property and its profit potential. Whether you are a first-time investor or an experienced one, we will find you the right investment property that matches your plan and long term goals.
For your reference, below is a helpful guide to assist you in investing in real estate:
Step 1: Plan
The first step to investing in real estate is to build a plan. This plan needs to provide you with answers to the following questions:
- What is your income goal?
- How much time do you have to get there?
- How many assets must you acquire to get there?
- How much capital will be required?
- How long will it take to make these acquisitions?
- How long will it take to pay them off?
If you have the answers to these questions, you will have a very good plan for your real estate investment future.
Step 2: Money & Operating Expenses
Investing in real estate will require money upfront to complete the purchase of the property and additional funds to cover all the operating expenses of the property until it becomes occupied. Expenses you should plan for are: repairs, maintenance, HOA fees, property insurance, taxes and other miscellaneous charges. So start saving now. The more money you have when investing, the better prepared you will be.
Step 3: Credit
Review your credit reports for accuracy and make sure that all your accounts are correct. If you see an error on one or more report, you will need to contact each agency (Experian, Equifax and TransUnion) to correct the errors.
Step 4: Financing
Before you look at a potential investment property, find out how much you can borrow. The best way to do that is to get prequalified by a lender. A good lender will be with you every step of the way, just like your realtor, to make sure you are getting the best loan for your investment property. Or if you plan to pay with cash, you will need to request a “Verification of Funds” letter from your bank.
Step 5: Real Estate Agent
Selecting the right realtor is equally as important as selecting the right lender. They both work as your teammate during the entire purchasing process. Our job at GEO Real Estate is to partner with you to make your real estate transaction as easy as possible.
Step 6: Search
Once you have selected a lender and a real estate agent, you will need to start thinking about the investment property you would like to buy. Are you interested in a single family home, multifamily home, commercial property or land? You and your agent will work together to determine what properties are available in your price range and the availability in the market.
Step 7: Offer
Once you have identified a property you want to purchase, your real estate agent will assist with negotiating an offer based on fair market values. Your agent will negotiate on your behalf to finalize the terms in the contract. Once both the buyer and the seller agree to terms, both parties will sign the purchase contract and any applicable addendum’s.
Step 8: Opening Escrow
When you open escrow, this means that a title company has received a signed purchase contract and an earnest money deposit for your real estate transaction. Shortly after opening escrow, the escrow officer will order a title report for the property. This report will confirm the ownership of the property and show any liens that might be on the property.
Step 9: Inspections and Appraisal
Throughout the inspection period, you will conduct inspections and order an appraisal on the property. Once complete, the results will be shared with all parties and, if needed, contract modifications may be considered or reviewed.
Step 10: Closing Disclosure
At the end of the escrow process, the Closing Disclosure will be delivered to all parties to review. This form is a statement of the loan terms and all the closing costs. You will have three full days to review the document and then the transaction will be scheduled to close.
Step 11: Close of Escrow
During your review period, the escrow officer will schedule a time for you to sign all the applicable closing documents. Then, after the review period is up, the transaction will close and the deed will be recorded in the county. Once all the documents have been recorded in the county, the funds will be disbursed and the final closing packages will be ready to be delivered to all parties. Once the property has closed, you can now start planning for the future and purchasing your next investment property.
Contact GEO Real Estate for all your real estate investing needs. Finding you the right investment property is our specialty and we will be your partner throughout the entire transaction.
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