Welcome to the second of a series of segments on equity. In the first instalment, “How are slumlord” We talked a bit about what it is to own and operate property as well as some but not ownership and management of trade. In this second part, and will discuss a number of pre-investment principles that can help you achieve the maximum return on investment.

There are three basic principles of the capital, you need to know before buying a building to avoid further payment:

Time
How you plan to own real estate investment? As is the case in equities and bonds, the value of your investment may change during the period in which you have. While most real estate will be in the context of the value of time, there is often short-term fluctuations in the market. If you plan to sell your property investment less than five years, is ready for the investment risks inherent in a shorter period. This is especially true if you bought your house from the real estate market. If so, it may lose money if the market needs to drop the provisional, especially if you have to carry out reforms in property.

If you plan to ownership for the next twenty to twenty-five years, is almost certain that your investments in real estate will appreciate in value. It is also a good opportunity for that you need major changes such as replacing the roof, wiring, or major organs such as a refrigerator or boilers. Naturally, these corrections will be met and that you / more than twenty years to repay the costs. If on the other hand, you’re only on the possession of capital and planning for the next five years to buy se?izova? up’er “could eat all the profits I have made during the short investment horizon.

Networking
If you want the best possible solution for investments in real estate that some people who you want to be with friends. City officials and bank employees to know what is available to the conclusion, and when I Ga on the market. And real estate agents usually know anything relating to goods on their territory. Some statká?i future, and advertisements in local newspapers.

A large number of people to participate in the market for real estate investments in May to join the same owner or owners of local investments in real estate. These types of organizations hold regular meetings, where you need more information about the interior of what is sold in your area. National Real Estate Investors Association is the organization’s web site that provide a wealth of information and resources needed for investment potential owners.

Financial Preparations
To get your finances in order. Less debt you have when you walk into your local credit institutions, and get more loans. This is common sense, but what is more true of those are seeking financing for fixed assets. This is because lenders know that people are much more likely to own property rental house. This means that the bank will pay higher and higher interest rates, which can not be. It is also a good idea to have a little more cash left unforeseen repairs may not be realized.

Capital by choosing wisely horizon contacts in the community to invest in property, and prepare properly for your investment funds can be an important means of supplementing the retirement and other savings