1. You make Money when you buy. In other words, don’t speculate on potential profits, try to buy at a bargain.
2. Familiarize yourself with different locations and understand the traffic patterns, public transportation, zoning laws and other issues particular to an area of interest.
3. Do your homework. If the price seems too good to be true, it may be a flag of issues with the property.
4. Check if there are additional fees associated with the property, i.e., a homeowner’s association, private security or special assessments.
5. Buy property close to where you’re located. If you need to self-manage your investments, at least you won’t have the extra expense of travel.
6. If you work with a real estate agent, try to find an agent who you’re comfortable with and stick with them…jumping from agent to agent may not get you the service you’d like to have.
7. Don’T EVER throw good money after bad — if the investment becomes a money pit, you may want to cut your losses, sell and move on.
8. If you’re buying to re-sell, choose properties that have general appeal to a broad market, this will increase your potential buyers’ market.
9. If you’re buying a rental property, don’t over-extend yourself in financing. If there’s a downturn in the rental market, and vacancies become an issue, you may be forced to contribute capital to cover the property expenses.
10. Underestimate by 30%. This will make a buyer and an investor conservative when calculating returns.
ABOUT THE AUTHOR
John Cunill is a Partner at The Law Offices of Adorno-Cunill & Damas P.L. The boutique law firm caters to clients who demand personal attention from their attorney. The firm handles Real Estate Law, Family Law & Civil Litigation; 305.381.9999; ACDFirm.com.