subject: Real Estate Investors And What They Look For [print this page] There are many types of real estate investorsThere are many types of real estate investors. They search for all types of real estate, from single family homes, to apartment buildings, to commercial properties. But the one thing they are all looking for is a way to make money.
Real estate investors may invest in a single family home to rent to another. This could work as an added source of income for them. In order for this to happen, the rent would need to cover the mortgage payments, with an additional cushion for repairs and hopefully some savings for the landlord.
A duplex, or apartment building, would generate income in the same way. If an investor is fortunate enough to be able to pay for the building outright, the rents that come in will be mostly income, minus the various expenses for upkeep.
The expenses for an apartment building or house, or any other type of investment wherein there are tenants paying rent, consist of separate bills for the electricity, heating, pro-rated property taxes, and sometimes water and other maintenance fees, such as landscaping or snow plowing.
Although the tenants of a commercial property has the same general expenses, they will also need to insure their own businesses and property within the rented space. This is in addition to the partial property taxes, utilities, and property maintenance fees.
Commercial investments can be the ownership of a small retail shop or gas station, whether the owner runs the business or not. It can be entire shopping centers, or office buildings, or industrial plants. An investor may even purchase unimproved land in a commercially zoned district for a future investment or sale.
The risks are many when investing in real estate. The housing market fluctuates just like the stock market. The best way to protect yourself when it comes to investing in a property is to do as much investigation on the property as possible. Due diligence is always a good idea. Real estate investors should also inquire about the properties of interest, and the risks involved, with his accountant, his attorney, and perhaps a real estate agent.
