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Buying or selling real estate, especially for investments, is a complex process. On closing date, you may find yourself staring a stack of pages several inches thick. That’s why it’s good to have experienced broker/agents by your side helping you avoid pitfalls and showing you how to take advantage of every opportunity. Here are a few things to keep in mind as you consider investing in property:

• Do your homework. Commercial property leases usually run longer than a year so be sure to research the current tenants.
  
  
• Take into account every cost that will be tacked on to the price, including closing costs and insurance.
  
  
• Don’t forget about inspections to prove that structure is still sound.
  
  
• Add improvement estimates into the equation, including a cushion for the unexpected.
  
  
• Have an exit strategy. Before you ever buy an investment property, you should estimate how long you plan on holding the asset.
  
  
• If you plan on renting out property, don't plan to keep every penny, despite the income coming in each month. In fact, it’s a good idea to have an escrow account for necessary repairs and interruptions in cash flow when the property is vacant.
  
  

The Buying and Selling Process

The last thing you want to do when buying a property is to overpay. Good research can help you make your profit when you buy, by helping you buy below market value. You can also profit by buying properties that need a little work, but don’t go overboard on the renovations or your properties won’t be affordable for tenants. The bottom line is you want to buy in the best location you can afford.

Once you have found the property you want, it’s time to talk about financing. As a buyer, you should avoid making purchases on credit and or with a credit card once you have applied for a loan. Buying a car, major appliances or furniture could alter your credit ratios and cause an underwriter to deny your loan. This could result in a forfeiture of your earnest money deposit in addition to losing the home. Because Rivertown Properties realtors are also brokers, you they can help guide you through the details of financing and mortgages.

Once a buyer or seller have agreed to terms and signed a real estate sales contract, the closing date will typically occur 30 to 45 days later. Usually the closing is hosted by the seller's attorney. In others, the lender's attorney handles the closing. As your real estate representative, your Rivertown Properties agent is trained to serve your interests and hold your information in the utmost confidentiality. They will explain the process and ensure that the transaction goes as smoothly as possible. In the rare event that questions come up after the closing, you can rest assured that your agent will be ready to assist you. They can also help you in find a property manager if needed.