The market for real estate for the counties of Loudoun, Prince William and Fairfax is still proving to be great for investing for those looking to invest in USA Real Estate.
Lately, the trend has been that real estate purchases have been increasing due to the fact that sellers have been decreasing their pricing. This would translate to a good time to buy properties at a deal and even more urgently now since this would not last much longer with the increase in purchases. If buyers continue to increase, then prices will go up.
As you can see a good way of profiting from your investment, as if they DO NOT repay you, most of the time, you will become the property owner free and clear!
WOW! Not bad for a few hundred or thousand of dollars invested!
Back tracking to a few years ago, within a good economy, the norm used to be 90% Redemption from the home owner, which meant 9 out 10 home owners made good on their tax situation by making a payment, before you the tax lien holder gained ownership of the house. In which case, you gained back your investment plus interest, as was the worst case scenario! Not bad right?
Closing Attorney – A good closing attorney is invaluable. Call around and see what they charge to close a deal for you. By using hard money to buy the property, rehabbing it, and then refinancing it, you will have two closings. The first when you initially buy the property and the second when you refinance. That being said, you want to develop a relationship with a closing attorney that understands real estate investing, provides their services at a reasonable rate, and can close quickly.
Insurance Agent – You will need to shop around for a good insurance agent. It may be the person that handles your existing insurance, but a lot of companies don’t cover rentals or have limited coverage if they do. When looking for an agent, ask if their company covers vacancies. You will have vacancies!!! Don’t buy a policy that doesn’t allow for that. You may want to get a minimum of $300,000 liability. Also, look for a policy that has loss of rent. What if there is storm damage and your tenant has to move out for 3 months for the damage to be repaired, you don’t want to lose that rent money. Make sure the agent understands that you want to insure rental property, not that you are renting. One is a renter’s policy and the other is called a fire/hazard policy. Once you have accumulated several properties, you might want to consider an umbrella policy that would cover all of your properties for say $1,000,000. This policy pays in addition to the insurance on the individual property and is very cheap. It’s kind of a safety net for that “what if” scenario.
Contractor – When shopping for a contractor, be sure you find someone that is licensed and insured. If you are working with a Realtor that specializes in foreclosures they will be able to recommend several. The same goes for a wholesaler. Interview them and find out how they get paid. Most reputable contractors have lines of credit, so they don’t require as much money upfront to get the job started. Ask to look at a job they are currently working on or have just completed. This will give you an idea of the quality of work they do. Have several contractors submit bids on the job before you make an offer on the property. You have to know how much the rehab is going to be before you can make a sound offer. Go through the property and make a detailed list of what needs to be done. Remember, you are not moving into this house, this is going to be a rental. Once the property is yours, go back and get a firm bid on completing the repairs including the time frame to get the job done. Time is of the essence. A vacant house produces no cash flow!!! If one contractor gives you a better price, but can’t start for several weeks, it may be better to pay a little more to get the job done quickly. You should have in writing exactly what will be done and the total price. Of course, there is always the unexpected, but if the rehab goes according to plan, there is no reason for there to be a change in price. You may want to negotiate to pay them one-third upfront, one-third when the job is 75% complete and the last third when the job is complete and has been inspected. This way if there are any problems or things weren’t done that were on the list, the contractor has to take care of it before receiving final payment.
Loudoun County
– A little over 280,000 in population
– Fourth fastest growing county in the US
– 520 square miles (land)
– Median household income: $107,207
– Highest median household income in the country beating Fairfax County
There have been lots of resales going on in here in terms of real estate and there has been limited new construction of houses. New home constructions have become very slow and requests for building permits have drastically dropped. It is a great place to invest in though if you’re going for USA Real Estate given that its residents have the highest income in the whole country.
The counties mentioned in this article have been working well for us in terms of investment in real estate and this may stay this way for some time. If you decide to invest in USA Real Estate, it will most likely be a worthwhile venture.
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