How to Qualify your next Investment Property

Verifying Income and Expenses

Evaluating a piece of Income property is vital. Taking the time to verify its income and expenses is the difference between a deal being made or falling apart. Knowing what numbers you are working with is crucial when doing your calculations. Also understand that you are going to have tenants that are not 100 percent accountable. Many will be late on paying rent. This needs to be taken into consideration as well.

Plan Your Return Requirements

Financial planners work your retirement plan from beginning to end because they calculate the return necessary to hit your goals. Calculate your required yield so you can develop your investment measures. Having an understanding of cap rate and return on investment is vital. These will help you to understand whether the investment property is worth your time. Make sure the property fits your buying criteria.

Call Your Lender

Make sure your credit and income are intact. Verify with your real estate agent and Lender that the property you're considering is worth the investment. Call your lender to ask about different programs, interest rates, amoritzation periods and loan terms. You don't want to overpay for a property. Make sure you understand values and your rate of return before acquiring an asset of this nature.

Power Up Your Software

Be sure to understand the formulas associated with your software so that you can run accurate numbers for your real estate investment. This way you'll know what's going on. The software will help you to make a solid purchasing decision and help you to avoid buying a deal that does not give you the return on investment your are seeking.

Go for it!

Once you've gone through your processes above you can make a solid decision based upon facts as oppose to using guesswork to make the decision for you. Remember, no deal is going to be perfect but asking the correct questions and using the right tools to make a solid investment will make all the difference in the world.