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Purchasing a property that will be used as a source of investment income is not a small decision. The price of the property may be a steal, but it generally takes a little more information before most buyers are ready to buy. There is good and bad advice that is given in the real estate industry. Knowing who you should speak to before buying rental property can cut down the risk of making mistakes.
3 People to Speak with Before Buying a Rental Home
People find information from various sources to use as investment advice. The Internet is full of websites that can be used for research purposes. When your decision to buy needs more professional input, there are generally 3 people to speak with to get solid facts before signing on the dotted line.
1. Attorneys Involved in Real Estate
2. Real Estate Accountants
3. Experienced Mentors
Attorneys Can Help
A lawyer who specializes in real estate law can be one source to use when considering the actual purchase of your first rental home. These professionals often do more than draft or review contracts for clients. Many attorneys represent investment groups, individual investors and commercial property firms.
A lot of inside information can be passed along as helpful advice when consulting with an experienced attorney. Most basic consultations are free, but it could be worth the time and money to pay for an extended session. The small price to pay for getting good advice is a lot cheaper than buying a property that you can't get rid of down the road.
Accountants Specializing in Real Estate
A property that looks good outside and inside is not always easy to find. This combined with the right price can make most new investors jump at the chance to get into real estate. Taxation as a property owner is quite different from standard income taxes. Speaking with a real estate accountant can enlighten you on the various taxes that could eat away at your rental income.
These professionals can also advise what are positive ways to invest earned income without paying too high of rates in taxes. Your personal tax status (sole proprietor, corporation, partnership or LLC) should be one issue discussed with tax professionals.
Experienced Mentors Can Help
Mentors in real estate often help new investors to avoid mistakes while trying to maximize a rental portfolio. There are mentors available through local real estate clubs, online forums and who provide private consultations. All advice given by a trusted mentor usually comes from personal experience. Taking in all advice that is provided when considering a rental home purchase is a good asset.
The housing specialists available through this JWB website can provide unsolicited advice. The rental properties that are available for purchase are affordable and plans can be created to help complete the purchase process.