There are good times and bad times when investing in real estate. When the market is at its peak, dozens of real estate seminars start popping up all over the country, and thousands of people shell out thousands of dollars for investing training.
It is shocking to learn that only about 5% of the thousands of eager attendees of these seminars buy even one investment home. Why? The real estate experts promote the "sizzle" and make it sound simple to make money from real estate. It is, in fact, simple, but not easy.
A simple strategy that will allow anyone to begin achieving financial independence is provided here.
Investing in single-family homes can be done in basically four steps:
1. Buy homes for less than their full market value. Indeed, individuals truly sell homes for not exactly the home's full worth. Understanding that the majority of homeowners will only consider an all-cash offer that is within 5% to 10% of their asking price is essential.
The effective financial backer figures out how to find monetarily troubled mortgage holders who must choose the option to sell for not as much as market esteem. They have been abruptly transferred or lost their job; They are splitting up; they've been living above their means; The family has a lot of medical bills, and it's not unusual these days for their money to go toward supporting a drug habit.
These are examples of sellers who are motivated. They will accept something other than a typical all-cash offer if they have to sell.
2. How can motivated sellers be found? You strive for it! A small marketing strategy is important, just like it is for any business. One that has been demonstrated for 75 years by the Fuller Brush company is simple but very effective; door-to-door marketing
People who need to sell are buying your home-buying expertise. You are there for them when they need you, and you are skilled at assisting them in resolving at least some of their issues. Door-to-door prospecting is the fastest way to learn more and purchase more homes. Be that as it may, a great many people in all likelihood won't walk house to house for three or four hours of the week. Okay, there are alternatives.
You can look for foreclosure sales announcements in public notices. You can deal with a very motivated seller if you meet with them right after they receive notice that they are about to lose their home. Probate, divorce, and bankruptcy are other public notices that offer buying opportunities. You can keep up with the Homes for Sale listings in your neighborhood newspaper or online.
You can contact the people listed in these notices by phone or, the quickest option, send a postcard expressing your interest in purchasing their property. There will be opportunities for buying, but not as many as with personal contact.
3. Once you've found a seller who is motivated, you need to know how to put together offers that benefit both you and the homeowner. A good real estate investor quickly realizes that this is not a business about stealing property; rather, it is about finding solutions to problems that are in the seller's best interest.
You can save the homeowner from public embarrassment and, in most cases, provide them with at least a little cash to start over. The homeowner is in a bind of some kind.
There is no investor who can afford to cash out on every deal. That much cash is only available to Bill Gates. You must employ inventive strategies such as leasing, option, and taking over mortgage payments. Those transactions do not require any cash at all. In book stores or on EBay, you can find a lot of educational materials on those topics at reasonable prices. the same training that seminars cost thousands of dollars to provide.
4. When you buy, you make money! Don't buy anything until you've carefully planned out exactly how you'll make money. Will the monthly rental income more than cover the mortgage payment if you keep it as a long-term investment? Will you offer the deal to a different investor in exchange for quick cash? Will you make some repairs and then sell the house for its full value? Will you quickly exchange it for a property that is more desirable? Have an arrangement before you purchase.
There are four steps that can be completed in three to four hours per week by even a part-time investor. What is the omitted component? your tenacity and persistence. You will be well on your way to financial independence if you consistently follow the plan for a few months.
