How To Get Started When Buying Investment Real Estate in Orange County

Buying investment real estate in Orange County is a great way to build wealth. While you may want to get to the point that you’re earning passive income quickly, getting off on the right foot in the real estate investment business can literally save you thousands of dollars in the long run. Read on to learn more about how to get started when buying investment real estate in Orange County.

Credit Score

Lenders will review your score and if they aren’t pleased with what they see, you could either be denied or be approved for a loan with exorbitant interest as a penalty for your low credit score.

Improving your credit score can take time, so get started now, when investing in Orange County real estate. You’ll want to ensure your payments are timely because this has the most impact on your score, to correct this, the more time that passes without a late payment, the better. Pay off your debt as quickly as possible, you’ll want to ensure a good debt to income ratio.

Savings

It’s imperative to begin taking steps to build savings towards the downpayment on your investment, this will save you a great deal of money over the long term. Putting a higher amount down towards the purchase will save you interest and provide lower payments, it is a great way to get started when investing in Orange County. While owner-occupied property can require as little as three percent down, investment property doesn’t offer mortgage insurance, so you must have at least 20 percent.

Budget

Setting a budget for the investment, taking all contingencies into consideration is another way to get started when investing in Orange County real estate. In order to be certain you aren’t buying more property than you can afford, it’s important that you have realistic data for your monthly costs and income, and the profit you will realize on your investment dollar. Factor in taxes, routine maintenance, repairs, and management services, if you aren’t going to be a full-time landlord and caretaker of the property yourself. You should set aside 20 to 30 percent of your rental income for emergency repairs and the like.

Get Pre-Approved

Want to avoid the let down of finding out the property you’ve fallen in love with is more than you can actually afford? Once you’ve worked out your budget, have your savings in hand, and are ready to buy, the next step is to arrange financing, before ever searching for your investment property. Being pre-approved can also give you the upper hand when you make an offer when buying investment real estate in Orange County. Sellers will know you’re serious and may select your offer over another without pre-approval.

Planning

Understanding the possible types of investment real estate and the role you want to play in your investment business is helpful in getting started when investing in Orange County. Included in your plan along with your entry into the property, should be your exit strategy as well, or selling when it is to your advantage to do so. Because changes can occur in the economy, it’s important to maintain the plan based on the best move for you at the time.

Want even more tips to prepare for buying investment real estate in Orange County? At H&M Realty Group, we are here to listen and help you set realistic goals to reach your dreams. Why not let the professionals at H&M Realty Group guide you through every step of the process, including finding the best deals to suit your needs, when you are finally ready to get started! Call 949-625-4533 or send us a message to learn more about building your real estate investment portfolio.

Joe

Broker/Realtor/Investor/Mentor (41 years experience) Specialties: Buyer's Agent, Listing Agent, Foreclosure, Short-Sale, Property Management, Landlord I'm a Full Time Real Estate Professional, house flipper and mentor to many of my clients. I am here to help you get top dollar for your home or get you the best price for a home that you are going to live in. I have over 40 years of real estate experience for you to draw on and actively list and sell over 20 homes a year. I have sold over 600+ homes in the last ten years alone. I am a very skillful negotiator and will work diligently to help you realize the best possible price when buying or selling your home. With my Exclusive Home Acquisition & Sales System, I can find the Right Home for You! I have access to homes no other Realtor will show you. I can show you how to save an average of $10,000.00 on the purchase price. We will find a home that fits your needs, in a neighborhood that suits your style. If you are selling your home then I can bring all the professionals to you. I always include professional photos in ALL my listings. I have contractors standing by to assist with those upgrades if needed. I can also quickly get you ALL CASH offers for your home if you desire. My marketing surpasses all other agents. It begins with extensive internet advertising to hundreds of websites throughout the world. I do direct mail marketing for you home and also knock on doors in your neighborhood when I am holding an open house. I hold you home open to expose it to as many buyers as possible. My Exclusive program is designed to sell your home for Top Dollar in Any market. I am an experienced flipper here in Orange County and therefore can offer you my over 40 years of real estate experience. The information is available to you at no charge! If you like what you see, please call me and setup Your Free Consultation.

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