Investing in real estate: questions to ask

Investing in real estate almost inevitably involves taking a risk. And without risk there is rarely any reward (even with a lottery, you risk the price of the ticket!).

But the wise investor works out how to minimize that risk and there are some questions you can ask to help with that:

What is my reason for investing? What are my goals and objectives?

How long will my funds be committed and does that match my other investment plans?

How much finance will I need and can I raise this?

What rate of return will the investment generate? By how much does the income exceed operating and financing costs? What percentage of the buying price does this annual profit represent?

If I'm buying a rental property, how many empty weeks can I tolerate before finances are a problem?

What price have other properties sold for in the same area?

Have I done enough research? How can I learn details of the city/locality involved so that I can make a judgement? Can I really do it solely from the Internet or without local knowledge?

What other resources can I call on? Do I need and do I have access to an attorney, Realtor, appraiser, repairman, rental agency, etc.?

For more details and information specific to Florida, click here:Investing in Florida Real Estate