Second article in the Marketing Your Real Estate Investment Business Series. Previous one – Marketing REI Business: Business Cards.
As a Real Estate Investor (REI), you are constantly looking for properties to purchase. You never know when a property will suddenly pop up for sale and catch the eye of other buyers, so you must be vigilant to stay ahead of your competition and end up with the highest profit.
It’s important to search all homes with the proper equipment at your side. Keeping a pen and notebook within reach is good for writing down the address of each place and jotting down notes like the asking price, if there’s a real estate sign in front with a phone number, or what kind of condition the property’s in. Having a camera and tape recorder (or a phone with those abilities) is also recommended so you can better keep to memory what you looked at and the comments you made.
Perhaps the best advice is to follow the adage to “be aware of your surroundings.” Whether you’re walking, bike riding or driving, keep a look out for vacant or abandoned properties. Homes that look unkempt with currently no appeal are the sorts of properties you should be most interested in. It will take more work to fix up a dilapidated residence than simply purchasing something more stable, sure; but you’ll find out that you made more money by buying cheap then paying repairs than the other way around.
There’s a reason why these residences are commonly referred as fixer-uppers: these ugly duckling homes can always be rehabilitated into the most beautiful swan in the neighborhood, and the equity created can be enormous. Even if you play the short game of buying for a low price and increasing the value of the property, selling or “flipping” the estate will end up with the higher cost difference as automatic profit.
If the longer approach is more your style, keep the brand new jewel in your portfolio of investments as a rental. Leasing the home out will get you additional benefits through appreciation, stream of income (positive cash flow), and tax write-offs.
However, it should be noted that rehabbing, either in the short or long-term game, does involve risk. Between the money you spent in purchasing the property, the needed renovations, and the hold costs, you’ll need to properly assess the best buying and exit strategies for all this effort to pull in cash. But in real estate, you need to put plenty of strategy into everything to end up with a golden goose. Right from the finding process, you need to have the entire buying-to-selling game in your head.
Continue to – Networking Your REI Business HERE.