About to take the plunge and invest a lot of money into property...anyone done this? how did u feel?

Question

About to take the plunge and invest a lot of money into property...anyone done this? how did u feel?

Answer 1

not a bad move - and the market just might be primed for it too.  Congrats on having the money on the downturn

you should probably sign up for the 30-50 dollar list of foreclosures in your area on-line - they do all the research for you and it saves a ton of time - worth the fee.

Then go to the bookstore, or get local (state specific) process for foreclosures and start putting in some bids

there are some great deals out there right now - I'm doing the same thing - slowly though - trying to find the best homes - in the best areas - that will rent for a while until prices turn around

don't forget that the market could keep dropping - so don't dive in with all your money - take it easy and keep an eye on all the housing indicators

With the dollar weaker, fuel prices sky high, record foreclosures, record debt levels in corporate america and gov't (9.6 trillion)- we could easily see double digit inflation - that could bring things down even more - so caution is the key word right now

good luck

Answer 2

I think real estate is one of the best ways that you can invest your money. When you say

"take the plunge and invest a lot" that scares me a bit. I am curious to know exactly how much you plan on investing. If you've done your research and feel it's a good buy- I can't see it being a bad thing. I would go for it.

Answer 3

Yes absolutely.  It feels great as long as you know what you're getting into.  Make sure you have an independent 3rd party appraisal done on the property to be sure that you are not paying more than the property is worth.  Especially in the current market.  Property values are still declining so you want to make sure you know what properties are selling in for in the same neighborhood where you're looking to buy, that are very similiar in square footage, bed/bath count and ammenities, to what you are looking at.  I would also have a home and roof inpsection done to be sure there is nothing majorly wrong with the property that could cost you tremendously down the road.  If found, and they're an acceptable risk, either make the seller repair the issues, or negotiate down the purchase price.  Also make sure that any add-on's done to the property are done with PERMITS and they are legal and conforming to the property.  If you buy a property that has been added on without permits, you will not benefit from that addition in terms of being able to count that extra square footage in the value of the property.  Only legal, permitted additions count as legal square footage.