Kenya Real Estate – Top 5 Common Pitfalls To Avoid

Real estate today is in a very bad shape. One of the main reasons behind this is the problem of foreclosure. Many of the states and cities in the US are suffering heavily due to the increasing rate of foreclosures there. However, real estate is a field where things usually bounce back after some time.

As scary as all that can seem, in reality a well-structured rela estate deals and investments is actually very safe. It’s not so much about ownership of the property as it is in “controlling” the property. That’s the process we call Real Estate Wholesaling.

For a shark to survive, it must continue to swim. If it stops swimming, it dies. And that’s what happens to most investors in real estate. What would happen if you stopped? What would happen if you decided not to work for a year? Most investors are like sharks, their business would die.

The challenge however is that most real estate investors don’t have a vision for their company. They just want to invest in real estate and make money. It doesn’t matter how.

Getting instant money seems a distant dream but it is a reality. It is true that there are many lenders that give quick money on less paperwork. They won’t ask you disturbing questions and also they won’t ask you give papers that you don’t have. Above all there is guarantee for getting money from these lenders. Since there are many friendly lenders, you can shop around to get quick money at cheap interest rate.

This is how it works. The investor goes into contract with an owner with very specific set of terms. These terms will include: 1.) A set purchase price; 2.) A set timeframe which is as long as possible; 3.) A set amount to be paid monthly; 4.) The best rental credit she can get; and 5.) The lowest option payment possible.

No matter where you look for an investment property there are some basic rules to remember. Never buy at full market value. You want to have at least 20% equity in the property for it to be a good investment. Know your market. If you do not know what is selling and what is not, there is no sense in even trying to invest in real estate. Have a marketing plan of action. You need to know what you are going to do with the properties you want to buy. Make sure there is a backup plan in case the first one does not pan out. Set up a real estate team to help you with any of your real estate needs. This means working with a real estate agent, an inspector, an appraiser, and even a loan officer. The more people you know who know real estate, the better off you are.