The Key to Real Estate is Knowledge
What I’ve learned over the past few years since I’ve been out of college is that knowledge is power. I know that may seem cliche, but it really is true. Unless you deal drugs or run an illegal business, you really need to work hard at something to become successful. The same is the case with real estate, especially living in Hawaii. Here in Hawaii, we have a limited supply of homes and land (consequence of living on a tropical island) and an oversupply of demand from local residents and both foreign and domestic investors. So in order to buy a home in Hawaii, you really need to do your homework and understand how real estate works.
I know that I have a lot to learn which is why I decided to find a mortgage broker and real estate agent. Most people don’t bother talking to a mortage broker or a real estate agent early on in their real estate search. Just because you call and meet with them for information doesn’t mean that you’re expected to buy a house right away. Your job is to find as much information about the real estate process. As for me, I’ll be meeting with a mortgage broker and agent next week.
My goal with the mortgage broker is to find out how large of a loan I can secure. The only type of loan I’ve received was my car loan and I’m not quite sure what to expect with a home loan. The few things I’ll have questions about include:
* Background checks - Credit checks, pay stubs, tax returns, etc
* My concern is that I just bought a new car and recently started my own business. Because I haven’t filed taxes for the new company just yet, I’m wondering if that will impede my ability to secure any type of loan.
* How to best leverage my money to purchase the loan (putting 5% vs 20% down)
I’ll find out soon enough and report back!
Lastly, I hope to meet with a real estate agent next week to talk about my real estate objectives. I know there’s a number of things I need to learn such as:
* How to find properties that are great deals due to location, price, area, etc.
* How to deal with the seller’s real estate agent
* What to look for in an open house to make sure the property you are looking at is worth the investment (maintenance fees, infrastructure, traffic, location, termites, etc)
* I’m sure there’s a whole bunch of other stuff I need to learn