5 Questions to Ask When Buying An Investment Property in Long Island

Real estate investing is a business enterprise that allows you to build wealth and ensure that you can live out your days in the driver’s seat, living life on your terms. However, investors must spend a great deal of time and effort to learn how to create a great real estate investment portfolio. Setting goals and tracking your progress provides an opportunity to celebrate your milestones and remain motivated to succeed.

The more you know about a subject, the more questions you may have, so we have set out to answer these five questions you need to ask when buying an investment property in Long Island.

Education

Successful real estate investment portfolios do not just happen; investors build them through careful planning. But, first, you must understand what you seek from your next investment to help you narrow down the features the property must have to meet your investment goals. For example, when buying an investment property in Long Island, ask yourself if it is the next logical step in diversifying your holdings? To answer this question, you will need to dedicate yourself to learning all you can about the real estate investment business and continue your education to expand your options. It is very challenging to reach your destination if you do not have a map to show you the way. Finally, do not leave technology out of your studies; the top investors utilize the efficiency and convenience of the most current apps and online systems to stay ahead of the competition.

Math

Once you have narrowed down your selections, you need to feel confident in answering the following question to ask yourself when you’re buying an investment property in Long Island. Do the numbers add up?  Real estate is a numbers game when it comes down to the bottom line. Through due diligence, you should have all the data required to do your calculations; therefore, you will need to know the specific formulas that real estate investors rely on to help determine the return on the investment, ROI. Then, like your school days, practice your math by running the numbers on listings daily. Understanding how to analyze a deal and determine a property’s entry and exit strategy with confidence are imperative to your investment business. First, however, it is essential to keep your finger on the pulse of current market conditions and make adjustments to your holdings accordingly.  For example, you may suddenly find it in your best interest to sell a long-term investment earlier than initially planned due to changes in the local real estate market.

Financing

Is your financing lined up? Being sure you’re prepared for whatever life brings opens doors, in particular when investing in real estate. For example, you will find having preapproval for financing extremely convenient when buying an investment property in Long Island, especially if you’re the first to make an offer, which is a huge advantage. In addition, bypassing the hurdles of financing contingencies carries a great deal of weight in negotiations. With your financial ducks in a row, you can offer a sizeable down payment and provide documents backing up your creditworthiness in the eyes of the sellers. For sellers with multiple offers to consider, buyers with cash in hand have priority.

Networking

Do you have a team? Of course, to be first, you have to be fast. But then, unless you’re trained as a professional home inspector, appraiser, and have a strong construction background, you will need the help of a team of professionals from every walk of the real estate industry.

Inspections provide you with confidence in the investment and the ability to calculate the costs realistically; buying an investment property in Long Island without this knowledge nearly always leads to a negative financial outcome on the investment. Networking is essential to the success of any real estate-driven profession. Gathering with like-minded investors provides you with referrals to key team members and can also give you an inside scoop on great off-market investments as well.

CoMax Properties

When selecting the expert you will work with for investing, renovating, and managing your properties, you should ask about their experience. With the highly experienced team of professional investors at CoMax Properties, buying an investment property in Long Island is easy. Let the pros at CoMax Properties help you plan your investment strategies. At CoMax Properties, we will guide you through the numbers line by line and answer any questions you may have about your financing options, with no obligation whatsoever. In addition, years of networking have allowed CoMax Properties to provide you with a full-service team that comprises the most reliable professionals in Long Island, handling every aspect of real estate investments, jumping into action on your behalf, from inspections to renovations and property management. And CoMax Properties has a steady inventory of the best investment properties in Long Island. Contact CoMax Properties at (516) 704-7025 to learn more!