For over a decade Ali Safavi Real Estate has been training investor and potential investors in the art of real estate investing. Like the Stockmarket, there are dozens of variables that go into each decision. However, unlike Wall Street the volatility is much lowers. So whether you are a seasoned veteran or just dipping your toe, here are some Ali Safavi Real Estate training tips to keep you on the right track.
The old adage that “location matters” is most accurate when it comes to real estate investing. Before you fork over a down payment and put yourself in a significant amount of debt over a property, ensure that it’s in a good location. HOWEVER, there is something to be said for buying real estate in an “up and coming” neighborhood. We’ve written about this numerous times at Ali Safavi Real Estate. Sometimes there are cheap deals to be had in less than perfect areas. Five to ten years from now that could end up being the new hottest spot in real estate and you got yourself a bargain.
Real Estate Taxes
Unless you live under a rock (or have given up watching the news) you know that there is a new tax system underway. One of the major sticking points was property taxes. With the new GOP tax bill in place, anyone who takes out a mortgage between December 15, 2017, and December 31, 2025, can only deduct interest on a mortgage of up to $750,000, or $375,000 for married taxpayers filing separately (learn more). This may slow down real estate buying in some areas like California and New York. Whether you are a company like Ali Safavi Real Estate or a first time homebuyer, it’s super important to understand the tax burden you will face with a new property.
Credit is Key
Most of us will have to borrow money to buy a property. One way to get around using your own money is to do a double-close deal. Short of that, you will need a bank. If you are investing in a second property, banks are less likely to loan money if your credit is less than great. At Ali Safavi Real Estate we recommend fixing your credit before jumping into real estate. You’ll save more in interest and the whole processes will just prove a lot easier.