The home buying process is different from the procedures used in other states. Unlike the East Coast, lawyers are not used to completing real estate sales. Instead, escrow is used.
Once you find the house you want to buy, you will start hearing people talk about escrow. There is no closing meeting. It is not uncommon for sellers and buyers to see each other on a regular basis. If you’re looking to buy a home in Rockland or in another part of the country, make sure you have a loan before starting the home search process.
All real estate agents must have a license to buy or sell real estate. Each agent you work with must have a Seller or Broker license. Brokers are allowed to receive payments for the sale of property, while salespeople must work under intermediaries. When there is an offer, you can contact the community real estate in Rockland
The agent will want to know what home you are interested in. You should always be prepared to buy a home when you visit an agent. If you’re really prepared, you’ll be given a better deal, because agents often have to deal with people who just “look,” and don’t commit to making a purchase.
You will want to put all the information about your offer. The agent will help by providing you with a list of homes that are very similar to the one you are interested in.
Below are ten categories of real estate, and the different ways to invest in them. What is best for you is something that only you can decide, according to your particular needs.
To help you do that, I’ve listed some good points and bad points for each type.
1. Rent a single-family home.
An easier way to get started, and a good long-term return on investment. Bad points: Being a landlord is no fun, and you usually have to wait a long time for big payoffs. You also lose all your income when a house is vacant.
2. Fixer-top.
Fast return on your investment, and it can be a more creative job. Bad points: More risk (much unpredictable), and you’re heavily taxed on those gains.
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3. Low-income housing.
Similar to other rentals, but with a higher cash flow. Bad points: Similar to other rentals, but with more fixes and tenant issues.
4. Selling a rental house to own.
If you buy, then sell on a lease-to-own arrangement, you get a higher rent, and the buyer is usually responsible for maintenance. Bad points: Bookkeeping can be tricky, and most tenants don’t complete purchases (this can be an advantage too, but it means more work for you).
5. Commercial property.
Multi-year triple-net leases mean less management and high returns. Bad points: The market is tough to break, and you can lose revenue on an empty storefront for a year at a time.
6. Land, broken down and resold.
Simpler than some real estate investments, with the possibility of huge returns. Bad points: It can be a slow process, and you have expenses, but no cash flow while you wait.
7. Boarding house.
You will generate more cash flow by renting a house near the rooms, especially in a college town. Bad points: You’ll be creating more of a headache renting a house near the room, especially in a college town.
8. Invest cash, sell on conditions.
High returns are possible by paying cash for a good price and selling on easy terms for a high price AND high interest. Bad points: you need a lot of money, and you tie up your capital for a long time.
9. Invest, live, sell.
The tax laws allow you to fix it, and sell it for a big tax-free profit after two years (if you live in it), then start the process again. Bad point: you may be tied to your investment, and you have to move a lot.
10. Pure speculation.
You can make huge profits by buying on a growth path and holding on until the value goes up, and this is a low-management investment. Bad points: Value growth isn’t always predictable, you have expenses with no income while you wait, and transaction fees can eat up a lot of profits.
Knowing what’s important to you can save you from costly mistakes. The process of “trying on” a house helps you evaluate what’s important. I think you’ll find it worth the effort we’ve put in.
