How Do You Know A Good Investment Property

How do You Know a Good Investment Property from a Bad Investment Property?

It helps to have the skills and knowledge to tell the different.

Are you ready to buy an investment property, but you do not know where to start?

Let’s start with certain factors, what skills and knowledge you must possess to be successful in buying an investment property.

Here’s a list of the skills and knowledge you must have.

1. Analyze the real estate markets

2. Determine demand for product (apartment space, office space etc.)

3. Estimate gross income of the property.

4. Analyze operating expense of a property.

5. Estimate net income of a property.

6. Determine appropriate capitalization rates for a property.

7. Analyze existing loans on a property and determine new financing that might be secure for a property.

8. Apply provisions of income tax laws to a property and determine the means of structuring transaction benefices.

9. Derive after tax cash flows from the property.

10. Apply financial analysis to after tax flows.

11. Determine return on investment.

12. Compare returns on investment for alternative properties and other types of investments.

13. Select properties that match your investment objectives

14. Know now to negotiate and close the deal.

How Do You Know a Good Investment Property?

Whether you own a home or not, you can invest in properties and build for the future.

Knowing how to invest is a skill many real estate agents and Realtors know how to do.

Remember that a bad investment can cost you time and money.

Steve Olmos
Selling real estate in Southern California since 1980

Steve Olmos: www.steveolmos.com
Homequest Real Estate

Diana Olmos: www.mortgagemarketingmentor.com
Statewide Funding Inc.