Another way experienced property investors make good money is that they search for and find properties that are not well taken care of financially. Sometimes an investor has a good property, but it is mismanaged and they are either losing or not making as much money as they should.
You see this in really large apartment complexes. If they are under bad management, they investors are probably losing money because of low rent amounts or because the manager does nothing about late or non existent rent payments. Some tenants will take advantage of you in a second if you let them. You give them an inch, they take a mile. You must nip things like this in the bud.
So what can you look for to find this type of property? As mentioned earlier, checking the rent amounts will be a good indicator, you don’t want them too low. Also if the owner has maintenance problems, or needs money, or they have high vacancy rates. These are all good signs that the property is being mismanaged.
If you can find this type of property I say jump on it. Generally you can get great terms and you should get a great return on your real estate investment.
Of course you should look at the numbers seeing what potential is there and what is needed to realize that potential. Only get into the investment property if you can see on paper that you will be making enough money to justify the investment. Look at the condition of the property and see how long the spaces have been vacant. The longer a space has been vacant the more poorly it has been managed.
Some of the other things would be easy to notice. The cleanliness of the vacant apartments, how much are they promoting the available spaces, things like that.
For more property investment advice to assist you in everything from finding foreclosures to buying rental property, please visit our real estate investing advice site.