John Jung, Coldwell Banker King Thompson, Dublin, Ohio
   Direct Line: (614)526-5692  Home Office: (614)793-2967  Fax:(614)889-1901
Email: FreeReport@JohnJungJr.com

10 Important Tips to Successful Real Estate Investing

To be a Successful Real Estate Investor you should be aware of these 10 Important Tips. When it comes to investing, everybody should have goals and objectives. To reach those goals however, I have found that there are general guidelines that every real estate investor needs to know and follow. As your real estate investment counselor, your Realtor® should be able to provide a lot of information and assistance.

1. Compare Property Values and Rents with others in the area
The best measure of a property's market value is often the sale prices of comparable properties. The same holds true for area rents. Know the area and what other landlords are getting for comparable units.

2. Be aware of the current tax laws and changes
The tax code is constantly changing, and a good investment is a good investment regardless of the tax code. The right property with the right financing is what you should look for as an investor.

3. Specialize in something you know, or get to know what you want to specialize in
First time investors, start in a market segment you know. Whether you focus on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you'll benefit by specializing in one aspect of investment real estate properties.

4. Know the Costs going in, you make more money by buying right
Know the financial statements inside out and don't be afraid to ask questions. What are operating expenses? What are loan payments? Vacancy costs? Taxes? What does the cash flow statement look like? These are key issues that must be addressed before making a solid investment.

5. Know where your tenants are coming from
If the last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, they may be living there simply to attract unsuspecting buyers. Drive around the area and look for 'for rent' signs. It is also important to collect the tenants' security deposits at closing.

6. Assess the tax situation, be aware of assessment and revaluations
Taxes are an integral part of successful real estate investing, and they often make the difference between a positive cash flow and a negative one. Know the tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax advisor.

7. Investigate insurance coverage - Find a good insurance company
If seller's coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price.

8. Confirm Utility Costs if possible
Ask the local utilities to verify recent utility expenses, especially if any of these costs are included in your tenant's rent. Some utilities will not provide this information.

9. Consult Your Accountant - Get one if you do not have one
Taxation and other accounting advice is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code.

10. Building Inspection is your best first insurance!
Make sure that you always perform a thorough inspection of the property before buying it. Never, ever buy any property without at least examining it. If you are not familiar and comfortable with inspecting all the mechanicals, foundation, roofing and other components of the structure, then your hiring a professional inspector to examine the structure and mechanical systems would be a sound investment.

Investing in Central Ohio? Let Me Help You Today!
John Jung, Coldwell Banker King Thompson, Dublin, Ohio
   Direct Line: (614) 526-5692  Home Office: (614) 793-2967  Fax:(614) 889-1901
Email: investinfo@JohnJungJr.com