Now that you've decided to invest in real estate, you have to decide
which properties to purchase. Your long-term plan, whether you plan to
rent the property or flip it, will in part dictate which kinds of
properties you investigate. An investor looking to flip single-family
homes faces a very different marketplace than an investor who wants to
rent office space to professional firms.
If you want to invest in a residential property, the same principle
applies, but the needs are different. Families buying homes are
concerned about things like shopping, good schools, transportation ease,
and low crime rates. It's important to see the property from the
perspective of a potential resident. If you were going to be living at
this address, would the area have what you need? To get the best price
for your property or the highest rent from your tenants, you'll need to
be sure that the whole package works, not just the home itself.
One of the best things a potential real estate investor can do is look
for an area that is marked for revitalization. A careful examination of
the local political scene can help you determine an area's development
future. See what significant changes are being made. A major theme park
opening up might mean it's advantageous to buy the family restaurant
down the road or transform a property into such a place. Perhaps you
find out that a major New York City-based company is buying property in
Tenafly, New Jersey, for its corporate headquarters. Is there property
for sale in that area? It might be valuable with the influx of 20,000
people every day. Look for commercial property in places people are
moving to or visiting frequently. People bring money into an area.
