| By :
Eva Judge
After determining an investment strategy and locating a property, investors will need to take the next steps toward purchasing the property. These steps include things such as making an initial offer, negotiating a price, securing financing, and hiring the services of a reputable property manager. Property investment experts can help investors during both the initial and advanced phases of property investment. Make an Initial Offer - Investors will make an initial offer to purchase the property. The offer should be in writing and should contain 'subject to' clauses. 'Subject to' clauses are crucial because they set the time frame in which the buyer will complete their 'due diligence' inspections and investigations to ensure the property is as they expect it to be. These clauses allow the seller to accept the written offer on a conditional basis. If the seller accepts the conditional offer, then the property is withdrawn from the general market until the purchase process is completed. This offer may be withdrawn by the buyer if any of the 'subject to' clauses are not met. Get a Written Market Rental Appraisal - Upon acceptance of the conditional offer, the buyer will proceed with a market rental appraisal while the property is withdrawn from the market. This appraisal will provide the buyer with an idea of the amount for which the property will rent. If the rental amount is acceptable, the buyer will then want to negotiate a final purchase price with the seller. Negotiate a Purchase Price - Negotiation is one of the keys to successful property investment. It is always in the best interests of the buyer to negotiate a purchase price less than the initial offer. Through negotiation the buyer and the seller will reach an agreement as to a satisfactory purchase price. Investors will want to attempt to negotiate a discount ranging from 5 to 20 percent of the original price. Inspections, Financing, and Property Management - When all inspections have been completed the investor will need to apply for financing and insurance. Mortgage brokers can assist with financing. A reputable mortgage broker can help investors obtain financing that will be right for them. One the financing has been arranged, the property investors need to organise building and landlords insurance. There are various insurance policies available, but investors will want to choose the policy that provides the most protection. It will be crucial that investors hire a professional property manager to help them protect their investment. A good property manager is essential to ensuring individuals obtain a satisfactory return on the property investment.
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