Saturday, 16 December 2017

Wealth Through Real Estate Investing Doesn't Just Happen By Chance

Written by Posted On Monday, 07 August 2017 16:23

There are many people that assume that real estate investing is a get rich quick kind of scheme with money almost falling from the sky. Others assume that investors just happen onto good deals through luck and the lucky ones make the money. The truth is that real estate investing takes both work and a plan of action. That plan of action begins with finding the right piece of property. Without that, no amount of skills or good fortune will be enough.

What Are You Looking For?

There are many ways to invest in property. You can flip, rent, wholesale, and more. Although each one is a real estate investment, each one has a different set of criteria that makes it the perfect property.

For instance, a wholesale property has to be discounted enough that you can make a profit as well as the investor that takes the property off your hands. If you are flipping a house, you need to a property that will sell for enough to cover repair and renovation costs, while being in an area that houses are selling quickly. Rental investors need to find properties that have a good cash flow, which is often based on location.

Not all areas of the country, or even neighborhoods in a “hot market” city, are good for every kind of investment. If you know what you are looking for, then you can know where to look.

Do the Numbers Compute?

Getting the value of the property right, especially the after renovation value is crucial to making money on a real estate investment. One good way to determine the value of a home is to look at the values of surrounding homes. What is their value? How much do they get in rent? How long do they stay on the market?

Once you understand the potential value of the home, you can then crunch the numbers to see if making repairs makes sense. Remember, if the numbers don't make sense, then the property is not a good one for investment. You should never invest in a property with the “hope” that it will appreciate or the “hope” that you can get a higher rent than indicated.

Looking At a Lot of Frogs

Most princesses in fairy tales have to kiss a lot of frogs before they find their prince. The same holds true for finding the right properties for real estate investing. Although it is possible to find the perfect property right away, typically, it takes a lot of work. You need to do everything you can to get as many properties on your radar as possible.

  • Networking – Talk to other investors to learn what is out in the market. Since not all properties appeal to all investors, someone in your network may know of a property that fits your criteria.
  • Online research – Begin your search the way typical home buyers do by looking online. Some good resources include:

      Zillow

      Trulia

      Realtor.com

      IDX

      Utilities

      Realtytrac.com

      Homepath.com

      MLS, if you have access

  • Creating an online presence through things like Facebook, Twitter, and other social media. This helps you get your name out there, so others bring you deals.

Then you just need to keep looking. Check out the homes that come your way until you find the one that meets the criteria you set. If you stick to your plan, you will find the right real estate investing opportunities. To learn more about real estate investing, feel free to give me a call or buy my book, Truth or Comfort here.

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John Trautman

John Trautman has spent his entire adult life in real estate. Purchasing his first property at 23, he learned the process of flipping and real estate holding from the ground up. Real estate continue to be his passion while he spent eight years as an account executive and later a vice President for Washington Mutual in the mortgage division. Holding the position of President’s Council and several years of President’s Club, he learned the lending business from the mortgage office perspective and lender perspective. Throughout his life he has also been a small business owner, commercial real estate holder, property designer, and house flipper.

During the downturn, John followed the deal to Detroit, Michigan, where he invested in single family rentals and multi-family dwellings. Once his returns were realized, he moved quickly to Arizona to invest in another distressed market.

His passion for making a deal and real estate has lead him to create a hands-on real estate investment mentoring club called Real Estate Knowledge Institute

realestateki.com

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