Let’s face it, there is money to be made in real estate at this time. Maybe you’ve been wanting to get into the business of buying homes on the low side (way beneath market value) and selling them on the high side. If you are interested in this kind of investment, the first thing you need to know is how to find suitable properties. There is an art to it, and those in the business have honed their skills mostly through experience. If you know someone who has done this sort of thing, it would be a great idea to have coffee with this person. Hearing how the business works from someone who has actually made a profit from his dealings is always a good start. There are a few tips you might want to consider before you get started.
Stage 1: Be a Good Detective
The footwork involved in finding a suitable investment property is the most important step and probably the most difficult. This assignment is one part luck, one part sweat, and one part artistry. You are going to need to carve out time for being in the car to drive through neighborhoods, talk with people in the community, compare houses, and sometimes search for the rightful owner of a house. The leg work piece to this puzzle is imperative. The house you are looking for is probably going to be vacant; probably won’t have a for sale sign in the yard; and probably will look a little worse for the wear.
Stage 2: Have Thick Skin
This venture is not for the faint of heart. You have to be strong and persistent. Unless you have luck on your side, you will probably be in “stage one” for awhile. Some people find a good property on their first or second day out. Most don’t. You know yourself better than anyone else knows you. Be sure that you have that entrepreneurial spirit before you take this on.
Stage 3: Create a Great Team
This is stage three, but you should have this team in place before you find the house. You are going to need a team behind you before you begin. That means finding the best people in this field and getting to know them. For one thing, you will learn much just by talking to the experts. Maybe you can cut down on your mistakes if you listen to those who know what this type of investment is all about.
- If you are going to rehab the house before you sell it, you will need a very good contractor.
- Because the house will be yours for a period of time, you will need trusted insurance representative.
- You are going to need an investment loan connection. The people you use need to be experts in this type of loan agreement.
Like any other investment opportunity, to make a profit you have to be diligent, hard-working, patient, tenacious, and smart. If you think you are the kind of person who can make this process work, then, you probably are.
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