If you are seeking to diversify your wealth building portfolio, real estate investing is always good and at the right time, it’s SUPER hot! When it's hot dozens of real estate seminars begin rolling across the country and thousands of people spend thousands of dollars investing in education.
It's startling to learn that of all those thousands of eager folks who attend these seminars, only about 5% are serious enough to take what they’ve learned and buy at least one investment house. Why? The real estate gurus sell the "sizzle" and make profiting from real estate sound easy. The truth is that it's simple, but not easy. 5 Things to Know Before You Buy Investment Property will give you insight into what is required.
As a real estate broker and a licensed agent for 18 years, I must say that real estate is exciting. Nevertheless, you need knowledge in order to make it work otherwise you may be at risk of losing more than you gain. It can also be very profitable if done with the right knowledge and a great team by your side. So if you are seeking to add additional streams of income to your portfolio in 2018, real estate is an excellent alternative.
Here's a quick plan that will enable anyone to begin building financial independence with real estate.
There are three basic steps to investing in single family homes that will help you move forward.
1. Buy homes below full market value. Yes, people really do sell homes for less than the home's full value. The key is to understand that most home owners will only consider a purchase offer that is all cash and within 5% to 10% of their asking price. The successful investor learns to find financially distressed home owners who have no choice but to sell for less than market value. They have lost their job or been suddenly transferred; they are divorcing; they been living beyond their income; the family has been overwhelmed with medical bills and not uncommonly these days, their money has gone to support a drug habit. Those are examples of motivated sellers. They must sell, and they will accept something other than a conventional, all cash offer.
2. Find motivated sellers who are looking for you? How do you do this? Work at it! It’s not easy, but it’s done every day by new and experienced investors. Like any business it is important to develop a little marketing plan. If you fail to plan, you plan to fail. The Business Plan Template will help you with your planning efforts. Real estate investing does involve sales. You can’t be afraid to ask for the money. In order to convince the distressed seller that you know what you are doing, you must sell your skills and be confident. Your goal is to be there when they need you and it is your responsibility to get the job done with little to no hiccups. You are there to solve their problem by buying their house. Be a solutionist!
After you've found a motivated seller and built a relationship, create a win-win situation. You must understand how to frame offers that provide benefits for both you and for the homeowner. A good real estate investor quickly learns that this is not a business of stealing property, but of solving problems in a way that benefits the seller. Don’t ever come across as a scam.
The homeowner is in a tight spot of some kind and you can save them from public embarrassment and in most cases, give them at least a little cash to get a fresh, new start. Save them from their misery and you will be their hero. Always do right by the people you do business with. Word of mouth is the fastest way to build or tear down your business.
3. Understand that you make your profit when you buy! Never make a purchase until you've carefully determined exactly how you will get to your profit. If you hold it as a long-term investment, will the monthly rental income more than cover the monthly mortgage payment? If not, it may be a liability. Will you sell the deal to another investor for fast cash? Great option if there is leverage. Will you do some minor fix-up and sell the property for full value? This could be quick cash if you can get at least $10,000 or more out of it. Will you quickly trade it for a more desirable property? Value is the key here. Bottom line… Have a plan before you buy otherwise you can and will be out of a lot of money.
These three steps and the tools that I’ve shared will change your life. You can start this business with just three to four hours per week and profit significantly. What's the missing ingredient? Your determination, perseverance and perhaps knowledge. Are you ready to grow your investment portfolio in 2018? Join me on a learning, action oriented mission with How to Buy and Profit with Real Estate. If you will unfailingly follow the plan and strategies for a few months you will be well on your way to financial independence.
am Nichelle Womack. As a people building coach, lifestyle and business strategist, I specialize in helping you reach your greatest potential through self-reliance and pushing you to and through your internal greatness. I provide information, inspiration and motivation through online and offline community engagement, power speaking events and one on one consulting. Positive thoughts and language are my fuel for energy and my desire to help you find yours. Looking for more great life tips, check out "The Master Tip Manual for Personal Success". Many blessings and much success to you!! Connect with me on Instagram. Learn more about me and what I do to help you at The Start Up Ceo.
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