I have been able to make profit quickly in the business of flipping houses to other investors. Recently, I’ve gotten more involved in the online arena and have been able to contract over 200 homes in a very short period of time. My profits rose quickly and relatively easily as a result, and with the idea of building long-term security in mind I have kept several properties as rental properties. What follows are some tips on how to invest in real estate now.
I use a lot of exit strategies when buying homes such as lease options, owner financing, and rentals. You have a lot of options when wholesaling real estate, and one of those is rental. Rental properties allow you to continue to gain equity without being affected by any downturns in the market.
Managing a rental property is not an easy task, so avoid properties that bring in low profits. In fact, you can take the effort you put into a rental home, and in a month flip five houses, which will produce a lot more cash flow. One of my important tips on how to invest in real estate now: do not rent out a house unless you have very little equity.
The Web is a huge repository of information. I’ve spent a year and a half learning and compiling tips on how to invest in real estate now. I receive a number of clients who don’t really understand the process of wholesaling. They’ve learned things from big business gurus, and come out with a little information but no mentoring, spending ridiculous amounts to learn this business. The issue with this type of training is they’re sold information that is stold from other sources, and there is no support and no exit strategy. My series of tips on how to invest in real estate now teaches you exit strategies once you’ve got the house.
It seems that the information out there says a good price is 65% of retail after repair value and fees. That means for a $100,000 house, you may be able to offer the seller an amount as low as $35,000 if repair costs and fees are high.
Another tip on how to invest in real estate now: You need to purchase a home for as little as possible, but if you go too low the seller is just going to reject the offer, leaving you with nothing. This is the place where the guru students wind up; they have no idea what to do, and lack negotiation skills to make anything happen because they can’t get past the 65% rule. What I would do is offer the seller more, and give the investor a smaller percentage cut on their return. Knowing how to invest in real estate now involved tips like these.
As said experts with Break Away: you can get rich using the examples on how to invest in real estate now above, but sometimes it just won’t work. Any investor should be ok earning a 20% return on their investment, even if it takes a few months to do the rehab work. They’ll also get some tax breaks on their investment.
About the Author: Joseph Mooryes is a copywriter and blogger from Ontario, CA. Joseph wrote numerous blogs and articles sharing the best methods and tips on investment and rental.
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