Investing in real estate is a good move in many local markets today. The potential of finding a property to invest some money into that can provide return is more than plausible. In this endeavor, it is best to start with a good plan, a solid team, and realistic expectations when it comes to expenses. Inaccurate cost estimates and unexpected expenses will eat into your bottom line making the planning phase essential. Take advantage of some of these probable expenses when it comes to investing in real estate from Lemont Illinois real estate agent Chris Budz.
Gotta Pay the Team
There are a number of qualified professionals you will need for your real estate endeavor. A good real estate agent will help walk you through the process of identifying a property, determining current and potential value, and buying. It will be important to hire an inspector during this process as well. Working with a lender will be necessary to secure a mortgage, as well as, an insurance agent. When the time comes to rehab the home you’ll need a contractor and a professional attorney will be needed for each real estate transaction. Each of these professionals carries their own cost and it is worth it to shop around. Trust your local real estate agent for recommendations and look at online reviews as well.
Buying the Property
The largest expense when investing in real estate is the cost of the home. This includes more than just the down payment and monthly mortgage. Other expenses include property taxes, insurance, mortgage insurance, lender fees, inspection cost, appraisal cost, attorney’s fees, and closing costs. It is important to go over each of these with realistic estimates before starting the buying process to ensure that everything will be covered.
Doing the Work
When doing the work on the house you’ll need to pay for labor, insurance, fees, and permits. Make sure to learn about zoning laws from the municipality as well. There may be restrictions regarding what you can build or additional costs. In the beginning of the project go over each detail of the plan with the contractor to determine each step. Set a realistic schedule as well. This way you will avoid the extra expense of labor if the project lags on.
Remember that the longer you own the house the more you pay. While it is in your possession you will need to cover the mortgage, insurance, property taxes, utilities, and maintenance. When the time comes to sell you’ll need to cover costs like inspection, appraisal, Realtor fees, staging, etc.
By doing the research and putting forth a solid financial plan with accurate cost estimates you can make your real estate investment a good one. For help with all your real estate needs contact one of the premier real estate agents in Lemont IL Chris Budz.