Steps You Need to Take to Acquire Raw Land

If you’ve been thinking about investing in raw land, there are a few steps you need to take before getting started. It’s important to understand the process to make informed decisions and avoid potential pitfalls. 

Keep reading to learn more about the process of acquiring raw land.

Research Zoning Laws and Local Regulations

Before you invest in raw land, it’s essential that you research zoning laws and local regulations in the area. This will help you determine whether or not your desired use for the property is allowed. 

For example, if you intend to build a home on the property, make sure that it’s zoned for residential use. It’s also important to check for any special permits or licenses that may be required.

Perform Due Diligence

When purchasing raw land, it’s important to perform due diligence. This includes thoroughly researching the property, evaluating potential risks, and reviewing all necessary documents. Check for any easements or restrictions that may apply to the property.

Hire a Professional Surveyor

Hiring a professional surveyor is also important before investing in raw land. A professional surveyor can accurately measure the property's boundaries and provide documentation of where they are located. 

This documentation is essential when transferring land ownership or obtaining permits for construction projects.

Secure Financing

Once you have researched and hired a professional surveyor, it’s time to secure financing for your purchase. If you haven’t saved enough cash, consider taking out a loan from a bank or other lending institution. 

Make sure you compare interest rates and other terms before making any commitments. You will need to work with a hard money lender to get the correct financing for raw land. Make sure you find the right lender to offer this specific type of loan.

Acquiring raw land can be an exciting experience but requires careful consideration and preparation. From researching zoning laws and local regulations to hiring a professional surveyor and securing financing, there are various steps involved in this process. 

Once all these steps are taken care of, you can look forward to owning your piece of paradise.

4 Things To Consider Before Purchasing A Business Office Complex

When you are preparing to buy a business office complex, it will be a significant purchase. Whether you are an investor looking to expand your portfolio or a business owner ready to take your company to the next level, buying a business office complex can be filled with pitfalls if you are not careful.

To ensure your purchase works out as you hope now and in the future, here are four things to always take into consideration.

The Complex Location

First, always closely examine the location of the office complex you want to purchase. Think about if it will be easy for your clients and employees to get there with few problems in terms of traffic, the crime rate of the surrounding area, and what other types of businesses are located nearby.

Asking Price

Before you sign on the dotted line to buy your business office complex, always make sure the asking price for the complex falls in line with other similar office buildings in the area. 

If the price is too high, you may be able to negotiate or look at other complexes located nearby If the price seems a bit too low, there may be something wrong that requires further investigation on your part.

Maintenance and Hidden Costs

Along with the asking price for the complex, also consider that there will likely be some maintenance costs and other hidden costs that go along with your purchase. 

For example, always ensure you have the building's roof closely examined by experienced roofing contractors such as United Contracting Group. 

Since commercial roofs are much different than residential roofs, make sure you know what you are getting before your purchase. Also, think about hidden costs such as parking and other miscellaneous costs since these can quickly add up for you, your clients, and your employees.

Room to Expand

Finally, you don't want to buy a business office complex that is so small that it offers your business or others who may be renting space little if any room for expansion. 

If you make this mistake, you'll either be in the market for another complex for your business in no time at all, or you may have difficulty renting it out to various businesses. 

If you can find a complex that comes with a reasonable price and room to grow, you'll be making a great purchase.

By keeping these considerations in mind as you search for the perfect business office complex to purchase, you can make a decision that will benefit you financially in the years ahead.

Understanding The Difference Between Mortgage And Construction Loans

Construction loans are a type of mortgage that allows buyers to borrow some or all of the money needed to purchase or construct a home. 

A mortgage lender typically offers the loan, and most construction loans require a 20% down payment in addition to monthly payments based on the property's anticipated value. 

However, not every house requires a construction loan. A construction loan is usually required when the property's estimated value exceeds the mortgage amount. 

Here are the underlying differences between a construction loan and a mortgage:

1. Safety

A construction loan is usually more expensive than a mortgage because of the interest cost. However, the increased interest costs can be covered with the building's profits and later selling off the property. 

The risk of paying larger sums early in life is offset by the benefits that building adds to your income and asset bases. The construction loan period is usually shorter than the mortgage, sometimes only 12 to 18 months.

On the other hand, a mortgage is a long-term loan with an amortization period of 30 years and payment periods of 10 to 30 years. Longer amortization periods require more initial payments, and thus it is costlier for the buyer.

2. Purpose

A construction loan is used to finance the purchase of real estate, a new building, and other equipment that adds value to the property. 

During the construction phase, a mortgage will not cover the property's value because it only has to do with an existing property. Construction loans are often used for large purchases such as flipping houses or large purchases for rental properties.

Mortgages are available to buyers who intend to live in their homes after purchasing them from builders or sellers. Mortgages are also available for buyers who intend to flip a home to a conclusion. 

The difference is that when you take out a mortgage, the house will be yours at the end of the mortgage period. Otherwise, if you need to get a construction loan, the property will be resalable after your payment is over.

3. Interest Charged

The interest on a construction loan is generally higher than the mortgage. This is because the construction loan has a higher risk factor than the mortgage. 

If something goes wrong and the home's value is less than anticipated, it can lead to financial losses for you and your bank. To prevent financial loss, banks will require you to spend a higher interest rate for borrowing money for construction.

Mortgage interest is lower than a construction loan because the bank has no risk of losing money unless you fail to make your monthly payments. Unlike with a loan for a building, banks have no risk of losing money with a mortgage. 

With the money for construction, you can lose thousands of dollars without receiving any benefits if you do not make your payments.

In conclusion, there is a difference between a construction loan and a mortgage, which is the risk factor. Construction loans have higher interest charges than mortgages, especially for buyers who do not intend to live in the house. 

You might be unable to sell your home or flip it after construction is done, so you lose money in the process. A mortgage is a safer way of buying a home because you will own the home after making your payments.

3 Alternatives To Investing In A 401K

If you work for an employer that offers a 401K plan as part of your benefits package, this can be a great way for you to build up quite a nest egg while you are working.

In most situations, employers will match an employee's 401K contributions, allowing wealth to accumulate much faster. However, there are also plenty of alternatives to a 401K.

If you're wanting to explore additional ways to make your money grow, here are three alternatives to consider.

Roth IRA

One of the most popular investment tools available today, a Roth IRA can be a great alternative to a 401K. First, it allows your money to grow tax-free, which could save you thousands of dollars over the years. 

Also, when you retire, a Roth IRA lets you withdraw any or all of your money tax-free as well. If you want to use your contributions for qualifying expenses such as college tuition or to buy a home, you can do this with a Roth IRA. As for annual contribution limits, these range from $6,000 if you are under age 50 to $7,000 if you are age 50 or older. 

It is ideal to work with a financial advisor who can look at your needs and income to provide you with the right amount to invest for your goals. Additionally, they can help you look at your income and current debt to recommend that the right percent of your income should be put into the investment. 

Additionally, they can provide you with recommendations for what percent of your portfolio should be used in other types of investments, not just a Roth IRA.

Real Estate

Always considered to be one of the best and safest investment options by many in the industry, investing in real estate may put you well ahead of others who are relying on a 401K. 

When you invest in real estate, you can do so for either short-term cash flow or long-term appreciation, depending upon your financial needs. Once you own investment property, you can build equity in the property, sell it whenever you wish, or keep it and pass it on to your children or others when you die.

Invest in a Business

If you have an eye for business, you may want to take that money you would have put into a 401K and instead invest it in a startup business. 

Since new businesses are started every day, many entrepreneurs are always seeking financing to get started. Once you've looked over the business plan and have confidence it will be a success, invest your money. 

If all goes well, you could find yourself making more money at this investment than you ever thought possible.

While there is certainly nothing wrong with investing in a 401K, there's also nothing wrong with exploring other investment opportunities. 

Once you do so and learn more about a Roth IRA, real estate, or startup businesses, you may find the money you would have put into a 401K will grow more rapidly in these other options.

How to Prepare to Buy Your Home

The road to homeownership isn't an easy one. The earlier you start preparing for it though, the better of an experience you’re likely to have. You can take the following steps to prepare for buying a home.

Check Your Credit

You don't want to start your home buying journey until you have checked your credit. The first thing that you should look for on your credit report is errors. 

One error can cause your credit score to drop by several points, and it can make the difference between good or bad credit. Contact the credit bureaus to get the errors fixed as soon as you can.

Paying off debts is another way that you can add points to your credit score. It is also a good idea for you to avoid opening up new credit accounts while you are looking for a home.

Save Up Money for a Down Payment

How much money you end up paying for a down payment depends largely on the asking price and what type of mortgage you get. People often end up paying about 5 to 6 percent of their down payment, but again it all depends on the type of mortgage or loan. 

Your income should also be a factor, as it will help you determine how much you can afford to pay month by month.

To avoid Private Mortgage Insurance, you’ll have to put down 20 percent, and some might see this as a favorable option if they want to avoid extra fees and payments every month. 

How much you end up paying on a PMI will largely depend on things like your credit score, the size of the loan, and how much the down payment was. 

You can also get a loan through the Federal Housing Administration, which will allow you to get a lower down payment. Regardless of what option you choose, you need to start saving up money now.

Hire a Real Estate Agent

You need a real estate agent to help you get through this process, as they’re the best person to help you find what you’re looking for. They also have a lot of knowledge about the real estate market in general. 

Additionally, they can help you understand important terms, such as conveyancing, which is the transfer of a title or deed from one party to another.

Real estate agents are known for having great negotiation skills. You may be able to take thousands of dollars off the asking price of the home you’re looking at by working with a real estate agent.

Take a Home Buyer Course

You can learn a lot from your real estate agent. However, it is still a good idea for you to take a home buyer course to give yourself a leg up in understanding the market. 

The course can give you general information about buying a home and help better prepare you for when you’re looking. They can also give you budgeting tips that will help you afford your home.

The process of buying a home can be a lengthy one. You can get this journey started by checking your credit and saving up money for a down payment. It is also a good idea for you to hire a real estate agent who can help you with this process. Furthermore, you can take a home buyer course.

4 Ways to Get Good Mortgage Rates on a Low Income

Having a low-income does not prevent you from buying a home in today’s market. You can find the property that suits you best for a deal that fits within your budget. Lenders look at more than income when approving a loan, so do not be discouraged and feel like you need to keep renting a home or apartment. 

When searching for properties, you want to use some of the tips mentioned below to ensure you get the best mortgage rate as a low-income buyer.

Research Lenders

You might be surprised at how many lenders accept buyers with low-income. With more options, you don’t have to choose the first offer, and you can find ways to reduce down payment requirements and lower your mortgage rates. 

When completing applications, be sure to put the same information on all applications, including the type of property you are interested in purchasing, the size of the down-payment you can make, and the kind of income you have.

Good Credit Score

Having a low-income does not mean your credit score is low. By managing your bills and making payments on-time, you can find reasonable mortgage rates on a new home. You can request your credit score and history for discounted prices or even free-of-charge (this will vary from person-to-person). 

Go over your debt ratio and see what can be paid down and what accounts you should close. If there are any inaccuracies on your credit report, dispute them immediately.

Public and Private Programs

Some government agencies and private lenders have programs available for low-income buyers. These programs develop criteria that buyers must meet and award loans with reasonable mortgage rates. 

The qualifications vary, but some of the most common requirements include being a first-time buyer, purchasing a specific type of home, such as single-family homes, and the property’s location.

Trusted Real Estate Solutions

Buying a home can present many challenges, especially for low-income buyers. The good news is that there are realty solutions that you can take advantage of to ensure you are getting a great deal on single-family homes, including low mortgage rates. 

The companies will keep you well-informed throughout the purchasing process, from contract requirements, local rules and regulations, and more. A reputable realty solutions company will ensure you have all of the facts you need and go over the best options for you and your family.

The tips above can help you with the buying process and get you one step closer to purchasing a home with a good mortgage rate, even with low-income wages. 

The best advice is to search and use all of the resources available to low-income buyers. Remember to stay positive and enjoy the buying process as much as possible; you only get one chance to buy your first home.

Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most of her time hiking, biking, and gardening. For more information, contact Brooke via Facebook at facebook.com/brooke.chaplan or Twitter @BrookeChaplan

How to Find a Land Agent

Land Agent

Are you looking to buy or invest in land or property? If so, one of the best ways to get information on the subject is to work with a land agent, sometimes also called a land broker. Of course, before you can work with a land agent, you need to know how to find one. 

Search by State

One easy way to find a land broker near you is to search state records. These can easily be found online just by searching for "land brokers" with your state's name or initials next to it. Once you do this, you may get a list of land brokers in the area. 

From there, you can click on a specific land broker to see their holdings or entities they work for/with or own. For example, one land broker that comes up if you search in Flordia is CEO Aubrey Ferrao.

Check Out News Stories

Another way to find your perfect land agent is to read up on news stories about land brokers in your area. These news stories often double as reviews. Going back to the Aubrey Ferrao example, you can easily find a Wall Street Journal article about her work to get a good idea of what she has accomplished in her field.

If you aren't sure where to look for news stories, the best thing to do is to check out some popular newspapers and websites that focus on giving advice to potential investors. Some of the most popular sources for information like this include Morningstar, MarketWatch, and Bloomberg. Keeping up to date with these sources and more can help to keep you up to date and educated on the topic.

If you want to learn more about land brokers, you need to make sure to do your research! These two source types are a good place to start. So, what are you waiting for? Find your perfect land agent today!

How to Find Low Cost High Value Investment Properties in Real Estate

The basic goal of a real estate investor is simply to buy on the low end and resell on the high end. This way, there are no huge losses in such an investor’s portfolio; rather, there are only profitable investments. Yet, while this is a simple strategy to comprehend, what is not so simple to initially grasp is where to find basement bottom prices on higher valued investment properties. 

The following are four tips that should help a real estate investor find some of these lucrative deals.

Follow the Market

As with most markets, the real estate market has cycles and trends. It is rarely a good idea to purchase real estate in a seller’s market. Knowing when it is a buyer’s market is the first key to finding low-cost real estate investments because the prices of even higher-end homes are always depressed in a buyer’s market.

Grabbing Low Lying Fruit

Often the easiest way to pick up low cost, higher valued real estate is by learning how to buy homes in probate. A person who is deceased will often leave a home, a property that turns into a tax burden, to relatives. 

To avoid this tax burden, often people will unload probate properties quickly at a lower than market assessed price point. This is an investor’s opportunity to purchase the house and sometimes everything left behind that may or may not retain value: furniture, jewelry, the car in the garage, and so on.

The Foreclosure Game

Sometimes a person simply has to unload a property, because they have fallen behind in their mortgage payments. In special cases, an investor will simply talk the home-owner into putting them on the title for a nominal fee and the promise that the investor will keep up the payments on the home to preserve the original owner's credit. 

In essence, this can help a home-owner out of a bad financial situation while helping the investor obtain high valued property for little or even no significant money changing hands.

Becoming a Good Negotiator

When browsing through properties for sale, it is often easy to find that one higher valued diamond in the rough that needs some work. Listings will sometimes even call these properties a handyman special. The good news is that the more work that needs to be done to bring the home up to a livable condition, the more points that a good negotiator can bring up when making an offer on such a property. 

By learning how to leverage the negatives of a property during negotiations, a savvy investor can often knock thousands of dollars off of the original asking price of the upper end, expensive homes.

As with investing in any asset class, there are always strategies for finding low-cost properties. The real estate investors' best strategy is to continue educating themselves in the methods that help them discover where the under market valued properties reside. 

Alternatively, a smart investor will learn to make their own opportunities—especially when considering the best way to go about negotiating for a lower price on more expensive homes.

4 Elements to Check for in a Home Listing For Greatest Buy Value

When you plan to make one large purchase for the foreseeable future, then you want to make sure it is the best investment possible. Many people choose to purchase a house. Here are four things to look for to help you get the most for your money below.

Age of the property

Typically, the newer the house, the less work you will have to put in to keep it up. Older homes often have code issues and structural problems you must address. Unless you are in the business of rehabbing homes, then it may not be advisable to purchase a fixer-upper. If you have someone with the tools and experience to get more money in the end, then yes, this is a great option. Otherwise, stick with a new house to retain the most value.

Location

Every agent will tell you that the site of the home or building is the most important thing. Whether you are close to shopping, walking paths, grocery stores, parks, entertainment, or diners is important. 



When you want a property that will keep the most value, then you need to be in a thriving neighborhood. A look at the comparison homes will help you see what range your home should be in.

Technical features

What amenities and characteristics are in the home? What things set the property apart from the rest? These items are important to the value of the building. Maybe there are stained glass windows or beautiful built-in shelves in the den. The most unique items are often the ones that add value. Carefully pouring over the home listings will help you find these features.

Upgrades

Old homes with the right updates and maintenance routines can be worthwhile. For example, a house with French doors and marble tile is going to be worth more than old doors and linoleum. 

When previous owners fix problems and add new features, then a home with age can be of value. The key is to make sure to get a property appraisal and inspection to make sure the home basics are solid. Things like electric, plumbing, and the foundation should be in good condition to make a sound purchase.

Picking the right property can provide you with a sense of security. When you have a home with good construction and the right location, you can build a portfolio that will provide income for years. Any agent will tell buyers to get a home inspection and appraisal before signing a contract.

6 Most Valuable Elements Of A Top Realtor Website

Finding a reputable designer that can Develop Web Sites For Realtors is your key to reaching out to a broader audience. And that is made possible by several factors.

Before getting to the benefits of working with reputable real estate website designers or their qualities, it is imperative to understand the trends. 

Today, major cities are witnessing substantial growth, which is forcing potential homeowners to settle on second-tier towns where they can readily afford.

The second most crucial factor you will need to think about is your target market. You must, and by all means, concentrate on the market with the most potential. 

For example, today, the millennials have surpassed the baby boomers as the enormous potential homeowners. As much as you are eyeing on other markets, it would be imperative working with a flexible developer.

You will also need to invest in information heavily, and this means you should know your competitors and be aware of what is happening in the economy. 

These, among other factors, are what will define your website as result-oriented. With that at your fingertips, your focus now shifts to a great professional who can develop web sites for realtors. Their qualities include;

• Time consciousness
• The highest degree of professionalism
• Knowledge of multiple programming languages
• Some degree of artistry
• A team player
• Vast experience in creating real estate websites
• Exceptional creativity
• Understanding the real estate market
• A developer with the qualities mentioned above will help you with:

1. Targeted SEO

Having a great website places you at per with your competitors, but what sets you ahead of the pack is the SEO friendly content. Today, 90% of potential home buyers use the internet to find their ideal property, and the best web developers understand that. A vast majority of these internet users only click on the top-ranking websites.

A well-constructed website with SEO content has the power of turning your website's visitors into clients. It begins with understanding your target market and incorporating content that your market can relate to. 



One of the ways your developer can help you actualize that is through incorporating a blog page where you can publish informative and SEO friendly content.

2. Automation for marginal tasks

Then there is that critical information that needs to be known or passed to the client. Failure to pass them this information through the website and on time might have adverse effects on your website and profession. 

Again, that is where the knowledge of multiple programming languages and understanding the real estate market prove beneficial.

These two qualities can make communication to clients or prospects automated. Chatbots are pre-programmed communication tools that assist with the response to urgent queries. 

This feature proves useful to clients who want quick answers. On the other hand, information about the newer property can be sent to clients through automated email updates.

3. Social media integration

The social media boasts of billions of users worldwide, with the average user spending at least six hours online on a given day. Social media is among the most excellent ways of building your brand awareness, partly because it reaches a more broad audience and allows easy or better interaction with your clients.

Working closely with your developer will help in integrating your website with various social media. They will also help you create prominent social media links that are exhibited all over your website. Doing so helps the web user to explore the features easily.

4. IDX features

Before they start to Develop Web Sites For Realtors, great web developers understand that looking for homes is the number one motivator of the traffic to your website. 

Incorporating IDX features to your website plays a vital role in keeping turning your web visitors into your clients. This feature works hand in hand with the CTA button; in that, if they find a property they like, they can click and talk to you.



The terms might sound technical, but your developer must understand them and how to manipulate them to get the best possible results. They will start by collecting images and information about your best property and incorporating somewhere on the homepage or anywhere easily accessible.

5. Backend databases

In any business, data is more than collecting pieces of valuable information. A great and result oriented website might be what you need, but with time, you will grow, and that means more data. A great developer will integrate capable backend databases with effective customer relationship management (CRM) tools.

6. Multiple calls to action

In real estate websites, call to action (CTA) is among the best features. If a potential client gets impressed by a particular property, then it must be made easy for them to know what to do.

Final take

Survival in the real estate world needs the highest level of professionalism, and one of the ways of achieving that is through working with a reputable developer. The listed above are some of the essential features they will incorporate to your website.

4 Ways Real Estate Investors Can Protect Their Assets

If you have recently decided to invest in real estate, then you need to start thinking about some ways that you can protect your personal assets. Even though this type of venture can be lucrative, there are potential pitfalls around every corner, and a minor mistake could wreak havoc on your finances if you aren’t diligent.

Find the Right Insurance

Your insurance is going to be incredibly important in the coming years, and you need to make sure that you invest in the right policies. Even if you don’t plan on having any tenants on your property, you must still have a solid insurance policy. 

Without the correct insurance policy, a natural disaster or personal injury case could end up costing you huge sums of money.

Work with an Investment Group

There are quite a few reasons why many real estate entrepreneurs join larger investment groups. In addition to giving you access to more resources, an investment group could also limit your risks. Most investment groups are LLCs, and that means the individual shareholders won’t be responsible for any major issues with the properties. 



You can also find a group that has an attorney on retainer, and that legal professional is going to be invaluable if a lawsuit takes place.

Create a Land Trust

Also known as a title holding trust, a land trust is a legal entity that could protect you and your assets from a wide variety of risks. When you use a land trust to purchase a piece of property, the title of that land won’t actually be in your name. 

While you can still manage that property, other parties won’t be able to go after your personal assets if any liability issues occur. As an added bonus, land trusts can also be paired with LLCs to further protect your assets.

Limit Your Spouse’s Liability

Even if your spouse is going to help you manage the property, you should still separate your family’s assets from your business enterprise as much as possible. In most states, lenders can’t go after a spouse’s assets unless they co-signed for the credit cards or loans. 

The homestead exemption should keep your primary residence safe as well, but you might want to speak with a tax adviser about that particular exemption.

In addition to these few tips, you should also make sure that you remain patient and never overextend yourself. It might be tempting to jump at the first piece of real estate that you find, but you need to consider all of the variables before you invest any money.

Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most of her time hiking, biking, and gardening. For more information, contact Brooke via Facebook at facebook.com/brooke.chaplan or Twitter @BrookeChaplan

3 Ways to Put Money Away for Your Retirement

Image via Flickr by KMR Photography 

It's wise to plan on your retirement. Planning will ensure that your golden years are free of hardships, stress, and worry. You should also consider looking for financial planning services and professional investment assistance.

With small investments, you can enjoy great rewards when you are old and possibly ready to take a break from work-related stress. You do not need lots of money to plan for retirement. Then again, it is never too late or too early to get started.

Here are the top three proven ways of setting aside money for your retirement.

1. Invest In Penny Stocks

Any stock that trades for $5 a share or less can be a worthy penny stock. Even though penny stocks are high-risk investments, they also have the potential of bringing forth high rewards. 

Understanding the market history and diligently doing your research is the surest way to ensure your investment is profitable.

To mitigate risks, you must not make blind investments. Consider enlisting a broker to educate you on the market trends and equip you with the tips and tricks to thrive. 

When traded right, penny stock investments only require small capital, and the returns can be glorious.

2. Venture into Real Estate

Did you know that you don't need to be financially endowed to invest in real estate? You have the crowdfunding option, and although it may sound intimidating, it is something worth a look. 

This option works by allowing many people to invest small amounts into a specific project. Credible companies will enable you to choose the kinds of properties that are in line with your investment objectives. 




Again, the surest way to gain financial security through real estate investments is by making educated decisions. Keep in mind that even with crowdfunding, you face the same investment risk as any other real estate investor. On the bright side, the lower capital requirements can leave you enjoying consistent income with each passing month.

3. Make a Small Business Investment

Another proven way to ensure financial security upon retirement is to invest in small businesses. You have the option of venturing into entrepreneurship or investing in an established enterprise as a silent partner. 

What makes this option enticing is that the anticipated return on investment is potentially higher.

Just like other forms of significant investments, this one too poses some level of risk. Doing your research ahead of time will help you find opportunities with higher chances of generating substantial returns. 

Some ventures can provide unlimited income that the generations after you will enjoy.

There are many ways of investing for a comfortable retirement. With more professionals getting familiar with what works and what doesn't, it is easier than ever to find a venture that matches your needs and goals. 

With proper guidance, you'll easily have nothing but blissful moments as you flip through the chapters of life after retirement. If you get stuck, you can also inquire from professionals to help you invest in the right venture.

Build Retirement Income with Condo Investing

As people near or reach retirement, many consider how to cut expenses while maintaining their current quality of life. Some get pensions, though most rely on Social Security and retirement investments to fuel their life after the paychecks stop. One of the first considerations is housing, and condo living is quite a popular draw for people over 50. 

It's less expensive, more compact, and has fewer yard work and maintenance requirements. Instead of just saving money, consider the fact that it makes financial sense to invest in condos, as well.

Choosing one or more condos as investment properties as you near retirement age might seem like too much risk to take on at that time of life. Yes, careful research is needed to maximize your returns, but condo investing is also less risky than other types of real estate opportunities for various reasons. 

If you need to get a home loan to purchase a new condo, make sure you understand the financial impact before you proceed.

The Benefits of Investing in Condos

Condos usually cost less than single-family homes in the same area, which allows people over 50 to risk less of their nest egg. Buying a condo in an existing community gives you detailed information about its track record for resale prices, property value overall, and tenant payments. 

Unlike separate homes, all the maintenance is taken care of by the property owner or management company. From a financial standpoint, condos in popular areas sell quickly and with possibly less marketing than a single home. 

The community often sells itself due to the shared amenities available. Holding them as rental properties gives you an ongoing, nearly passive income that can last throughout retirement.

Questions to Ask Before You Choose a Condo for Investing

Is this the right location to invest in? Location remains one of the most important factors when buying real estate either to flip or rent out. Look for community growth, employment opportunities nearby, quality of the schools, and other benefits that will make people move into the area. 

Also, check out the condominium complex itself to make sure residents and renters are satisfied with living there.

Should I invest in existing or pre-construction communities? If you purchase an existing condo property, you know exactly what you are getting, how much rent is currently paid, and the expectations of future raises. 

The track record of a particular property and, if occupied, the tenants, can help you make the decision more easily. On the other hand, it makes financial sense to invest in condos before they are built as this lets you get in on a potentially lucrative deal that can only grow over time. However, more risk is involved, and you will have to wait until construction is complete to begin making returns.

Do I want to flip condos or become a landlord? These two methods of investing in condos as you near or reach retirement age both come with pros and cons. Buying to resell requires organizing some repairs or renovations and then marketing the property to a new buyer. 

Buying to rent the condos out will bring ongoing income, but potential headaches you may not want to have during your senior years. In the end, the decision is up to you and your financial situation.

Investing Insight: Pros And Cons Of Condos Vs Homes

If you're thinking about purchasing a condominium unit or a home then there are a number of differences that you should be aware of before making your decision. 

You need to understand what a condominium actually is and how it differs from an apartment or home for starters. There are a number of personal and financial considerations that can tip the scale in favor (and against) condo ownership, so let's get started.

Condo Pros And Cons

The first upside that a lot of consumers appreciate about owning a condo is that their mortgage payments are far more manageable. 

Even with a 30-year home mortgage you could be talking about monthly mortgage payments in the thousands, which would seldom be the case with a condo in most areas.

With a condo you also don't have to worry about landscaping and trash collection as you normally would with a home. Those kinds of services are usually covered by the condo association and taken care of with your monthly condo assessments. 





With both condos and homes you may pay property taxes. A lot of people might also have a problem with all of the condo association's rules - like what you're allowed to renovate in your unit or the kinds of pets that you're allowed to have in your condo unit.

On the plus side condo ownership can mean an attractive urban unit in the heart of the city at relatively little monthly expense in terms of mortgage payments and biannual property taxes.

Pros Of Home Ownership

The first pro with a home is that there's usually much more space for you to entertain your guests and do what you like. 

You can have as many pets as you want without worrying about condo association rules, and you can have guests stay into the wee hours of the early morning. You'll have more indoor space too with most homes. Any upgrades you make will increase your curb appeal and likely home re-sale value as well.

Cons Of Home Ownership

The downside is that, although you'll have fewer rules to negotiate, you'll have to maintain your own lawn unless you go with a lawn service. 

You might also pay more on a monthly basis as far as mortgage payments or taxes go. It's possible your home could depreciate in value over the lifetime of your investment.

The amount that you're willing to pay towards your mortgage and property taxes, the amount of independence that you need, and the kinds of opportunities in your area will likely determine whether you become a condo or home owner. 

Checking in with real estate professionals, like those at RE/MAX Associates San Antonio, can make the decision easier. If you're still struggling, though, remember that a condo comes with rules and monthly assessments. 

Home ownership, on the other hand, likely means more maintenance but the chance to make a healthier profit at closing when you go to sell and independence until you go to do so.