Investing in real estate can be relatively low risk and can offer a relatively high yield. Are you thinking about investing in real estate? Experts say that low prices and low interest rates make this a great time to become a real-estate investor. While the timing may be right, these four tips can help you take advantage of what might be the opportunity of a lifetime.
Know what is available
There are many ways to invest in Orange County real estate, so you need to decide how you are going to do it. Since not all investment properties are the same, it’s important to determine what type of property fits your strategy. Are you interested in becoming a landlord and receiving a more steady income for a longer time period? Or would you rather remodel and resell properties? Would you like to invest in residential homes, commercial properties, industrial areas or are you more interested in developing vacant land? MSN Real Estate suggests that “First-time real-estate investors may want to start with residential housing, since commercial real estate and land development still face challenging market conditions.”
Make sure your finances are in order
It is very important to have your finances in order before you start looking for an Orange County investment property. The good deals and rare investment opportunities tend to go really fast. You have to be able to act as soon as one of these properties comes on the market. (When I say “act”, I really mean “act!” don’t waste time and write your offer if it is a good deal! I have had clients miss out on opportunities because they weren’t quite ready financially.)
You don’t need to write an all cash check for the whole amount –though it does give you a competitive advantage. Instead, you can find a bank to lend you a good portion of it and can simply put up a down payment. This amount can change depending on the property type and use, but 3.0%-25% is the norm. If you plan to invest using borrowed money, make sure you are pre-approved by a lender. A letter of pre-approval will strengthen your offer. If you are not currently working with a loan officer, I can recommend several trustworthy officers.
If you are in the position to make an all cash offer, great! You might have a competitive advantage when multiple offers are being made on the same property. Make sure to provide proof of your financial resources when submitting your offer.
Location, location, location
Location is extremely important when investing in Orange County real estate. Luckily, most areas in Orange County are very suitable for real estate investing, but you still want to do a little research. Whether you are looking to flip a house, or or buy rental property, location is key. It is always recommended that you pick a neighborhood and study it. You should really get to know your area and the prices certain homes go for. The better you are acquainted with your area, the easier it will be for you to make snap decisions when a new home comes on the market. Generally, homes in high-rent or highly populated areas are ideal -which is why Orange County is such a suitable place for real estate investing. It is also important to pay attention to the quality of the neighborhood.
My team and I can help you find suitable neighborhoods for your specific strategy.
Do your research
We can provide you with extensive market research reports. Researching prices and demographics in your area is extremely important. Your real estate investments directly tie the contribution of your real estate holdings to your personal wealth. You want to make sure you are making the right decision in your financial situation.
I can assist you in refining strategies with market data, providing you with objective information. Click here if you would like to receive a complimentary market update.
Find a good agent
Last but not least, find a good agent. It is extremely valuable to work together with an Orange County real estate agent who will go above and beyond to find you the right investment property. I will work very hard to find you the best investment within your budget, and to make the transaction process as smooth as possible. Furthermore, I can make recommendations for reliable and experienced contractors, loan officers, interior designers and stagers as well as escrow and title companies.
Contact Jaleesa Peluso for more information about investing in Orange County real estate at (949) 395-0960 or Jaleesa@JaleesaPeluso.com.
About Jaleesa Peluso
Jaleesa Peluso is a Laguna Beach Realtor®. As a Laguna Beach Realtor she specializes in coastal homes and luxury home marketing. For more information about Orange County Real Estate or Laguna Beach Real Estate, visit: www.jaleesapeluso.com
Contact: (949) 395-0960 or Jaleesa@JaleesaPeluso.com