REAL ESTATE INVESTING GUIDE
Selecting the right team of real estate professionals can make the difference between a joyful, stress-free transaction and an unhappy, troubling hassle. Global Realty Partners can make such a difference and after selecting them as your real estate agent, you should consider the following:
Payment. Will the purchase be financed or paid in cash? If financing, your real estate agent will place you with a mortgage professional to pre-qualify you for a loan. If paying cash, be sure your funds are liquid and can be moved in a timely manner.
Ownership. Although this seems very fundamental, there are advantages and disadvantages to owning the property individually, with others, in trust, in a domestic corporate entity, or in a foreign corporate entity. This decision must be made prior to closing, but if it has not been made at the time of signing the contract, be sure the contract is assignable to your family members, partners, trust or corporate entity.
Inspection. A thorough inspection of the property you are purchasing is important to help you get to know the condition of the property and allow you to make an informed decision. In addition, you or your agent should conduct a walk-though inspection prior to closing to be sure the condition of the property is the same.
Association Application. You may have to apply to a condominium or home owner’s association when buying a property subject to such. Be prepared to provide references and some financial information as well as have your background checked. In addition, an in person interview may be required.
Title Search and Title Insurance. A title search is necessary to reveal the existence of recorded defects, liens or encumbrances upon the title such as unpaid taxes, unsatisfied mortgages, judgments and tax liens against the current or past owners, easements, restrictions and court actions. Any such defects must be resolved or accepted prior to closing. Title Insurance covers claims associated with these issues as well as potential claims from unseen risks such as forgery, incompetency or incapacity of the parties, fraudulent impersonation, and unknown errors in the records.
Casualty Insurance. Casualty Insurance is recommended to protect your investment from unforeseen accidents such as storms, fires, floods. There are many different types of coverage depending upon the type of property and its use. The guidance of an insurance professional is helpful in choosing the best coverage for you.