Television commercials and websites make real estate investing look easy. Realtors offer kits to the secrets of investing and they guarantee that you will find some good properties within a certain amount of time or your money back. It’s not that simple to find a good deal but it isn’t impossible. The key is using multiple forms of media to search for good deals.
Real Estate Investing And Foreclosure
If you’re going to be investing in real estate then you need to put your realtor thinking cap on. Realtors send out postcards and newsletters to try to find potential buyers and sellers. Since you’re looking for property for investment purposes, you are in search for sellers. You can target an area where there is a lot of foreclosure going on. Basically, you want to find any potential sellers and anyone who may know a potential seller.
Don’t be afraid to call people when you’re looking for real estate investing opportunities. Oftentimes, investors are uncomfortable calling people that are going through foreclosure. This is understandable because foreclosure is an extremely hard, stressful and messy situation. You will find homeowners that will get terribly upset and curse you out or hang up on you. However, you also have a chance of benefiting from this phone call because you’re contacting the person yourself. If you send a postcard the person has to contact you, but if you make a phone call you’re making the effort.
Real Estate Investing And Flipping Houses
Flipping houses is a huge real estate investing market. For those who are not familiar with this term, flipping houses refers to buying a home and quickly selling it for more. More times than not, there’s a whole rehabilitation process, however, people usually still end up making money. In fact, people make millions by simply buying an ugly old house and dolling it up. At the same time, there are certain things to look at when you’re considering this form of real estate investing.
If you’re going to be a real estate investor at all, you need to know your market. This is particularly important if you’re going to be flipping houses, though. You need to be able to know a potential sale when you see one. Observe a lot of houses in the area. Note features and financing options in the houses that have sold quickly. You can even ask real estate agents about terms of sale.
Don’t be afraid to invest in a home that needs aesthetic work. In fact, it is better to start investing in real estate that only needs cosmetic work. Look for homes that need painting, flooring and cleaning. Don’t look at the house as an ugly home but as a canvas for your creativity. These types of homes are not appealing to most buyers and investors but you should actually seek carpet stains, holes in the wall, ugly curb appeal, nasty wallpaper and so on. You can easily turn these ugly shacks into profitable investments.
At the same time, be weary when you’re looking at homes that have structural, electrical or plumbing problems. This is not a good idea when you’re just starting out because you will need to invest a good amount of money to fix these issues. If the real estate that you’re investing in has severe structural problems you want to get an estimate from a reliable contractor as to how much it will cost to fix. Use these estimates to your advantage when you’re deciding whether or not to purchase a home to flip. Remember, every expense reduces your profit.
Why Bother Investing in Real Estate
Investing in real estate can be hard work but it can also pay off. You can really make a big profit if you are able to spot a diamond in the ruff.