Question About Real Estate Investing
Hi,
Another newbie here. I am very glad that I found this forum because there seems to be some very knowledgeable people here.
My situation is as follows:
I own a little over an acre of land on the island of Tobago and would like to do something with it. My first thought was to sell it, but recently I've been thinking of looking at other options that may be more profitable. The property was surveyed about two years ago.
It is zoned for both commercial and residential. It is located about 1/4 of a mile from the downtown area. I do not know the value of the property and was wondering, besides the use an appraiser, how else can I get info on the market value of properties in the area.
As you can tell, I don't know anything about real estate investment, except my experience as a landlord. What are the fundamentals of real estate investing I need to learn about, as a beginner, to get a good picture of the business, to make educated decisions, and to determine the best possible options?
I don't have a lot of liquid assets and I'm hoping that I could use the land as collateral to obtain financing when the time comes.
Thanks in advance
Tony
The best way to value your land in Tobago is to fly down and start asking knowlegable people about what they think. This is especially effective if you do it in February when the snow on the ground in CT is about three feet deep. Then you can feel justified in whiling away your winter vacation drinking fruity drinks with umbrellas in them on the patio while discussing real estate prices with the locals. This transforms your winter vacation into a business trip which is, therefore, tax deductable.
However it is now spring in CT and the daffodils are in bloom and the sun is shining and the birds singing thereby making a trip to Tobago redundant. So find the name and phone number of a couple of real estate brokerage companies in Tobago (the internet is a wonderful thing). Call them up, tell them you are thinking about selling the land and ask them of their opinion of market value. If the prices are far apart call a couple more.
I might be willing to go partners with you in developing the Tobago piece. I'd be glad to teach you all you need to know about real estate development , we use your land for collateral, come up with a brilliant new development concept, jet down from time to time to check on the status of construction. I'll even conduct the occasional weekend seminar on proper technique for interviewing the locals at the local umbrella-drink place so as to get the necessary information regarding local market conditions. (its a joke John, please don't ban me for advertising). Real estate is such a demanding field.
Stay away from the pepperfruit. Otherwise, just follow along with what Mark suggested.
Good luck.