TIPS FOR INVESTING IN REAL ESTATE

If you are first venturing into the real estate investment world, and want to achieve good results, this article will help you do so.

  1. Analyze the market. Before you buy or lend money to a developer, you have to look for market indicators. It may happen that incomes have risen in the last five years, but you have to know how much potential there is. If incomes are high, but there are very few commercial premises, offices or empty houses, it is a sign that it can still be grown.
  2. It is important not to invest everything in the same market. For example: do not concentrate in San Salvador, but also look in Santa Ana or San Miguel. For someone who invests in real estate, diversification can be given by buying cheaper homes and then renting them, instead of just one.
  3. Analyze the good. One can realize the state of the good with the naked eye, but it is worth seeking the advice of some civil engineer, because there are some things that can escape in a first inspection.
  4. Make sure the papers are in order. Make sure that the property to buy is in order, without fines or pending taxes, among others. Seek the support of a lawyer or a notary for the transaction.
  5. In societies condominium, note that it is clear who is the owner. That the condominium regime be constituted.
  6. Have the titles of property. Make sure property titles are in order, as well as land use licenses and other important legal details.
  7. If the property is to lease, make sure there is security and that the guarantee is honorable. There are those who resort to bail bonds, but these are difficult to execute.
  8. If you are renting, look for any references to the tenant.
  9. Get the floor plans. Verify that the plans specify the limits of the property in the scriptures.
  10. When you invest in something that is under construction. See that the builder has bails, to ensure that the work is completed. Also get a copy of the building permit and wastewater discharge permits.
  11. Investigate in detail. Make sure that the area where you are analyzing buy has demand. If you want to resell the property afterwards, it is important to be sure that you are in an area sought by buyers. The accesses and the type of neighborhood are key.
  12. Do not let others change your mind. Trust yourself, sometimes the same experts can be wrong. Take advice from different experts on the subject, and then get a neutral opinion taking into account factors such as: What kind of property are you looking? What is the best location?  What types of tenant seeks?
  13. Compare, compare. Whether it is for sale later, or for rent, it is vital to have data to compare.
  14. Have the money ready. If you have the resources ready to be disbursed before you start looking, you will be able to search and analyze the various opportunities with more confidence.
  15. Hire the right professionals. It is a fundamental element to achieve the success of the proposal.