If you want to become an investor in real estate for sale in Louisiana, there are a few important things you’ll want to consider in this uncertain financial environment. When to buy land and how to buy land are two questions one must ask as well as answer prior to buying real estate in today’s market.
When and how to buy property are important things to know and understand, but- go deeper. Why are you looking at buying real estate in the first place? Do you think it’s a good investment, a place your cash will be safe? What has you looking at land? Let me tackle the first question, “Why am I looking at real estate now?” If your portfolio is in good shape, now is a great time to buy real estate for sale in Louisiana. What do I mean by that? One thing, and this is very important…one must be bankable. How is your cash? Cash is king again, not that it went away, but so many have forgotten and have found themselves leveraging not only all their cash, but every asset they have up to 150 percent! If you go to a bank today you better have at least 30-40% liquidity on the property you want to buy or they will send you out the door as fast as you went in. If you are going to be a player or you just want to invest in a tract of land or two it’s important that you be able to cash flow the payment for at least eighteen months out of your salary or better yet, cash reserves.
Now how are you going to find the property, and more importantly how are you going to sell it? If you are looking at bringing a partner in on a property investment, be certain to ask yourself what your partner is doing in the deal and more importantly…what is he investing in the deal? there was a time when someone could find a deal, go to an investor, get the money and do all the work without actually investing any money in the deal walking away with thirty to fifty percent of the net profit. The old days are over-things have changed. If you partner someone on a real estate deal, you better make sure that person is vested in the deal…and I don’t mean time; I mean hard cash. What happens if the property does not sell in six months, twelve months, eighteen months? Where are the payments on the loan coming from? Your no-cash-partner or you? Remember, if you are making payments out of a salary, what happens if you loose that job?
Yes, money can be made in this market. Borrowed money has never been cheaper or harder to get, but my advice-if you invest in this market, be very careful. It’s easy to find yourself over extended and that can kill you financially. I would advise any investor to be liquid or stay very small. Make certain any partner is vested in the deal or find another partner. speculating on land is a thing of the past…there will be a monthly note attached to any investment property. If you put up the cash, sign the note and your partner isn’t financially able to even help pay the monthly note, where does that leave you?
Be careful who you invest in as much as what you invest in, don’t be the last one standing when the music stops and have no seat, it won’t feel good.
In 2000 Chuck and his wife Lindey developed a website called Mississippi-Landsource.com. The website was launched for uniting the real estate market in Land For Sale In Mississippi. In 2009 more sites were launched as sister sites for other states like Land For Sale In Louisiana and Land For Sale In Alabama
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