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Making The Deal Happen – Part 2

Learning that real estate comps help you in your goal to real estate investment success is one of the first steps to prosperity.  I wanted to share the second installment of the post.  What happens after you have done your research and bought the property?  You’ve renovated, what should your next step be?

Now that you have rehabbed, it’s time to find a buyer. Most often it will be easiest to find a cash buyer. You can also market your wholesale deal by placing classified ads online or through a variety of other marketing strategies such as direct mail and bandit signs.

Once you have your deal under contract and you have found an interested cash buyer, it’s time to close the deal and make your profit. The thing I enjoy about wholesaling real estate is that you don’t need cash or credit, and you never have to worry about renovating a property or dealing with tenants. Basically, you just find a good deal and a serious cash buyer and you have the winning combination for quick cash.

Don’t let wholesaling intimidate you.  Learn the ropes and you will be amazed at how it will begin to come to you naturally. Just remember this, what matters is that whatever location you choose, you must focus on two things: finding motivated sellers and serious investor buyers. The perfect combination for success.

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Making The Deal Happen – Part 1

A savvy investor is able to make a start in the real estate investment field by using solid real estate comps. If you are ready to start making a profit for your business, wholesaling houses could be the perfect opportunity for you. It’s the fastest, most secure way to grow your business.

By definition,  wholesaling houses is when you purchase a property well below market value and then re-sell it to an investor buyer at a reasonably marked-up price. I want to share some tips on how to make those deals happen in your real estate business.

You will want to find a motivated seller in order to obtain the best deal. Most often a motivated seller could be someone who could be going through a divorce, someone who needs to relocate, or home-owners who are facing foreclosure or are behind on bills. Whatever the reason for the sale, you have to remember you make your profit when you buy.  So take a good look at the property and make sure that you’re able to purchase the property for 40-60 percent or less of it’s after repaired value (ARV).

It’s time to make an offer. Every market is different, it is important that you do your research prior to making an offer.  Learning about the area schools, shopping, and crime rates allow you additional insight into the real estate comps you may be using.

I hope that you are gaining insight and knowledge regarding real estate investing and how to make it work for you. Join me next time as I cover the next steps in the real estate investment playbook.

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What You Need For Real Estate Success

Real estate investing involves real estate comps, purchase, holding, and sale of a property with the expectation of using the flow of monies for potential future deals and thereby generating a favorable return on that investment, ROI.

Real estate investing offers the advantage to the investor to leverage. In other words, with an investment in real estate, you can use other people’s money to magnify your rate of return and control a much larger investment than would be possible otherwise. A step further, with rental property, you can virtually use other people’s money to pay off your loan.

Of course, we know that capital is required, there are some risks associated with investing in real estate, and real estate investment property can be management-intensive. Learning to manage those risks and make the field work for you is the challenge. Real estate investing is a source of income that cannot be denied. The benefits are too great not to accept that challenge.

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Beginning Investing

For anyone who may be new to real estate investing, I want to show you how you can begin your journey. I want to help you to keep the inevitable risks to a minimum. Given all of the risks involved with real estate investing, it is low in comparison to other investing scenarios.

It is important to know as much information as possible in the beginning in order to protect yourselves.  A real estate investing program or real estate investing seminars are two great suggestions for beginners interested in real estate investing. You can also use the internet as a great place to receive and learn the skills you will need to have when making a real estate investment.

Purchasing bargain real estate is one of the best ways to make money. As a rule a property that is listed for 20% below its worth, is definitely worth a look.  If you make an offer, make sure you know how much the property will be worth once you’ve done the fix-up and flip.

If you follow these basics then you should have no problem getting started and making money with real estate investing. Keep in mind that it does take time and hard work to make it pay off, but it definitely will in the long run.

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Finding Success in Real Estate Investing Part 2

Let’s keep our talks going about real estate investing.  You basically want to start at the beginning – delve into the fundamentals. Talk to an expert in the field and find out what it is you “don’t know.” From that discussion develop a list of questions that you need to have answered and go to work finding the answers. With all the information sources we have available today, the answers are out there, you may have to dig for them, but they are there.

Talk to everyone you know who has done well with this type of investing, pick their brains. Get them to share their experiences and mistakes they made if they are willing. Ask about books they recommend. A mentor is an invaluable source for guidance in the first months of real estate investing.

Do not read just one book or watch one set of videos. To be truly educated in any field, you must study different perspectives on each topic and look for critical threads that run through all the material regardless of who the author is. Your understanding will begin to develop and you will slowly develop a solid knowledge base that will help you be successful.

Begin to network with others in the real estate world, agents, brokers and investors. In fact, joining a real estate investment club or taking classes on real estate investments could be fun and extremely useful in furthering your education.

I am sure that it is obvious, but I am going to say it anyway. Investing in anything requires capital. You must either have personal capital to invest, financial partners that will help provide the capital (and hopefully have some experience in real estate investments), or you must have the assets and a credit history that will allow you to finance your purchases. They all work, but the bottom line is that you must have the money to make money.

Join me next time for the last tips to find success in the real estate arena.  Learning and doing are the best way to make your mark in the real estate field.

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Finding Success in Real Estate Investing Part I

Investing in real estate has been one of the building blocks for building wealth for years. It has the potential to make the average man very rich, if he knows what he is doing. Solid real estate comps give you the tools you need to make your profit on each deal.

Any business that promises great profits also includes the possibility of great loss. Most losses are the result of mistakes that could have been avoided. Let’s bypass those mistakes and take a look at some steps that can help you be successful.

Education is the answer: DO NOT dive into real estate investments because the market is glutted with properties that are actually affordable and interest rates are low – or because you suddenly have a sizable chunk of income that you want to invest.

All of the reasons listed are good reasons for becoming a real estate investor, but do so with your eyes wide open. Learn the system and learn how it can work for you – real estate comps are just the beginning.