“Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy” –Marshall Field
It has been known that an investment on any real estate property is an excellent avenue to generate passive income and extra revenue. However, before you start jumping the gun on real estate property investment, there are a few things you would need to take into consideration first.
If you wish to remain successful in your investors or at least get a decent return on your investments, then you would need to make a passive income. Passive income is when you make money sans the big financials, efforts or time such as when you would collect rent payments from your tenants and simply watch the property pay for itself. Indeed, real estate investment can be a lucrative venture but in order for it to be, you would need a sound passive income. If you have a string of properties such as rental houses or condo units in Arca South and the like, you might find that these may have moneymaking potential. However, take note as not every property would have a great profitable value. Here are some of the red flags you ought to watch out for when it comes to property investments :
Numbers do not make sense on paper
So much like anyone into real estate investment, you would also likely be looking to make money from your investment—regardless of wherever the property you buy is situated. If you meet a seller who is unyielding about the exorbitant price of his or her property even after it has been on the market for quite some time without selling—it might be time to move on.
Lack of hard facts
Sellers should be able to provide you with statistics on vacancy rates vs rentals as well as year to year profits and the like. If they cannot, it is likely that they are covering up for something. Do not enter a deal blind, and move on to the next potential investment. You need to see the hard numbers before striking any type of deal.
Too much maintenance for what you pay
Advertisements—whether online or offline are designed to entice prospective buyers to make an offer. As it is, what you see in actuality is not always true to what was advertised and you might end up having to spend quite a lot of maintenance. While fixer-uppers can be a great deal, a property on the decline is a whole other story. If it has been neglected for far too long, you might want to skip it and proceed to the next potential property.