Tips for Buying Real Estate Investments
If you’re new to real estate investing, you may feel overwhelmed and unsure of what to look for as you check out potential real estate investments. At Gallegos Enterprises, LLC, we take part in lots of real estate investing activities, including fix and flips and wholesaling, which has given us a lot of experience in this area. So in today’s article, we’ll take a look at what points you should consider if you’re seeking to acquire a real estate holding, fix and flip, or other real estate investment.
What to Look for When Buying Real Estate Investments
When considering a potential investment property, the process that you’ll utilize and the major points of consideration are very different from those that you would keep in mind when buying a home for yourself.
In order to maximize your profits, you simply cannot consider your personal tastes and preferences. Instead, focus on the purchase as a business transaction. The following are a few of the points that you should keep in mind when visiting possible investment properties
You need to make some careful considerations as you view the real estate, so keep these tips in mind as you view potential investment properties:
• Consider rehab and repair costs. A majority of the money you expend on an investment property will be spent on repairing, upgrading or rehabbing the home. This will have a tremendous impact on how much it costs to get the property into the right condition so you can ensure a maximum profit. Don’t ever attempt to guesstimate when it comes to repair and rehabbing costs. Always get an expert opinion.
• Evaluate the profit margin. Determining the likely profit margin is key. If you don’t have sufficient profit margin, then it doesn’t make sense to acquire the property. It can be challenging to accurately determine the cost of repairs and other factors that impact profit margin. So take the time to evaluate the property, looking at the current market value, the cost of upgrades and other factors that impact your bottom line.
• Evaluate salability and the current real estate market. When acquiring a property, whether it’s to sell or to maintain as a rental holding, you’ll want to evaluate the property’s salability or rentability in the current market conditions. Some properties are very challenging to rent or sell, while others sell or rent in very short order. To ensure that you don’t tie up your investment capital for longer than expected, make a concerted effort to be realistic about how difficult it will be to find a renter or buyer for the property.
Acquire Real Estate Investment Properties from Gallegos Enterprises
At Gallegos Enterprises, we work with lots of fellow investors and rehabbers, as we sell properties on a wholesale basis and get involved in a number of fix and flip ventures as well.
We also buy homes for cash and sell our properties to soon-to-be homeowners who are seeking a new home.
If you would like to sell your home for cash, please take a few minutes to complete our form. Or, alternatively, if you’re interested in acquiring one of our properties, simply complete the form on the property listing page.
If you have questions for our real estate investing experts, contact Gallegos Enterprises, LLC at 602.753.8252.