subject: Find Out How To Lease A Home [print this page] The Keys for Successful Home Buying The Keys for Successful Home Buying
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The First Step In Real Estate Investing in Chicago
Are you ready to make your first investment? One strategy is to choose the lowest price house in the best possible neighborhood to put a contract on.
Here's a scenario: let's say the cheapest two-bedroom house in the best neighborhood in Fort Wayne costs $100,000 and the next cheapest, comparable home is listed for $140,000. If you buy the home that is priced at $100,000, you can raise your price to $130,000 the next day and make a dandy little profit.
Now let's talk about closing the deal. First show the seller your pre-qualification letter from your lender. Then get the required inspections for termites (don't forget that part) and get your appraisal. Once you have all of your ducks in a row' so to speak, it takes about 30 days to make the final close (could take longer or shorter but this is just a general rule for real estate investments in Chicago).
A note here about any renovations or repairs that you might want to make to the property: Before you close, you might want to think about a Purchase and Renovate loan. Consider the area your purchasing. For example in Chicago, there are certain considerations that don't apply if you live in San Diego. A Purchase and Renovate loan wraps the cost of construction up in the loan so you don't have many out-of-pocket expenses. This may require an estimate from a general contractor and plans from an architect as well. I posted another article on What to avoid when investing in real estate.
Okay, now let's go back to the first thing that you needed to do and that was to determine your strategy. Now is the time for you to execute that strategy that you have used to invest in this real estate. If you bought it with the strategy of flipping it when the market went up then you just simply wait.
If you bought it with the strategy of renovating and then selling then it is time to start your renovations. On the other hand, if you bought it with the strategy of renting it, it is time to start looking for tenants. You want to make sure you're being safe.
Again the area in which you purchased makes a difference. Consider that real estate investment in Chicago, and within the Greater Chicago Area, may require a different strategy. You also have to consider your personal goals (your primary objective). Is it residual cash flow (month over month), is it capital gain
You see, the point of having a strategy for profiting from the purchase of any piece of real estate must be your first decision because everything that comes after that is dependent upon it.
Hope you enjoyed this post.
Gabriel Matache
Your Chicago Real Estate Investment Expert
P.S. I'll be offering a "Kick In The Butt" service where you and I can work together on real estate deals and I'll become your coach. It will be like Real Estate Investing 101
