How to Buy an Investment Property
Low interest rates combined with low home prices make this the best time to make a real estate investment. Add to that the fact that the Modesto real estate market has begun to recover splendidly and you have yourself the best deal. To buy a sound investment property without any hassle, here’s what you need to do.
- Seek Advice from a Property Finder/ Buyers Agent – Ask for advice regarding the type of property that will capitalize your investment. A buyer’s agent or a property finder is the best person to get advice from as they know the market better and are a valuable resource. They are also helpful in negotiating deals with property sellers and/or their agents.
- Consult a Financial Advisor or an Accountant – It is necessary to discuss your current monetary situation with an experienced individual who can give sound advice on diversified investments. This will help you be sure whether a property investment will improve your financial situation and whether you can afford to make repayments without crossing your budget
- Study the Mortgage Industry – Learn everything you can about the mortgage industry and about the Modesto real estate laws. It is good to have at least basic information before you begin negotiations with the lender.
- Look for Properties Within your Budget – Once you know how far you can stretch your limit, you can begin looking for properties within the Central Valley, the Stanislaus County in the cities of Modesto, Turlock and Ceres.
- Make an Offer – Once you discover a good opportunity for property investment, do not waste any time in making an offer formally. However, make sure that the offer is to be in writing. Once a price has been agreed upon between you and the seller, arrange to have the contracts written.
- Sign the Contracts – Make sure you sign and exchange all contracts in the presence of a legal expert. Before putting your signature on it, have a lawyer check the contracts for any irregularities.
- Organize Inspections of the Property – Contact agencies which carry out inspections of property. You may have to spend $500 to do so, but it is an essential process, especially since it can save you from spending thousands of dollars if the property reveals hidden problems later on.
- Signature of Mortgage Documents – To receive the loan, you are required to sign the documents handed to you by your bank. Read the documents thoroughly first and make sure that you understand the interest rate, mortgage account and all the fees involved. In case of any errors in the documentation, contact your financial advisor or lawyer.
- Handling The Settlement Process – Once your lawyer confirms that everything is in place for the buying process, the settlement date is to be confirmed. In case you don’t know what that is, it is the day when you obtain legal ownership of the property.
If you follow these steps, you will soon be the proud owner of a Modesto Real Estate property.