In an earlier blog, I gave some basic tips on buying smart in today's economy. Now I am going to look at how to find and track residential real estate for investment.

 In today's economy, everyone is looking to make smarter investments. In my opinion, real estate is the way to go as it's the best long term investment. But, you have to approach the process of buying just right in order for it to pay off.

You have your source of funding lined up. You have selected a real estate agent, Deb Camuso. Now you have to find a property to purchase.



1. The MLS (multiple listing service) is not the only source for finding properties. In fact, since it is the most popular source, it can be a better idea to look outside the MLS to find properties others may not know about. Where to find properties outside the MLS? Auctions, FSBO's, estate sales and word of mouth are just a few ways. I stay on top of such properties and can be a wealth of information.

2. 
What are your short and (if applicable) long term goals for this investment? Are you looking for a property to generate immediate income? Something that will help support you in retirement? Something that you may someday want to move into as a primary residence?



3. Start to analyze trends and area statistics. Even if you plan to hold onto the property for the long haul, you still want something that can be unloaded if necessary. What is the average area income? What is the profile of the average buyer? Are you buying something that will be in demand by the average buyer? 
Remember, even if you are going to hold long term, you are STILL buying this property for the person who will someday buy it from you!

 What is the median selling price for the area and the median square footage? Determine the "popularity factor" in your area. Here's what your goal should be: something in the more popular area, with at or above the average square footage for below the average selling price.

4. Tracking. Do not allow yourself to get emotionally involved. This is where many buyers make their biggest mistakes. They get caught up in game and lose sight of their real estate investment goal. Do your analysis upfront and decide either: (a) in order to make a profit, you need to acquire the property for $xxx or less or (b) in order to generate the monthly cash flow you need, you cannot pay more than $xxx for the property. Know those figures and stick to them because every dollar more you pay is eating into your bottom line.