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Recipe for Successful
Real Estate Investing
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 Yes,
I did say recipe, not a cookie cutter formula. You see in my
humble opinion cookie cutters are good for one thing –
making cookies!
Each real estate transaction that you will do will have some
things in common, however, most have different logistical
and or legal considerations, which make each transaction
unique.
Sense
most recipes usually have one or more interpretation by the
chef(s); here are my essential ingredients to a successful
real estate transaction.
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Know Your Market: This can not be stressed enough in
these challenging investing times. Know what investing
strategies and techniques will work for maximum profit
and leverage in your geographical area.
-
Know Your Exit before you go in the Entrance:
Another words, know what you will do with the property
before making an offer or instituting a leveraged
investing strategy such as a lease option.
-
Budget 20% Above “Fix Up Cost” Estimates : Why?
Unforeseen circumstances! In contractor lingo that means
“we didn’t know the walls were horse hair plaster, when
we gave you the quote”. You get the idea, it’s better
to over budget and pocket the overage, rather than start
financially hemorrhaging because your profit margin is
shrinking faster then the balance in your IRA account
due to “unforeseen circumstances”.
-
Be Pro Active: Stay in the game. If you’re working
with a real estate agent don’t leave it to them to
handle the deal. This is especially true with short
sales; most real estate agents don’t know how to
facilitate a short sale, so in order to get a YES from
the bank you must insert yourself into the equation. Ask
questions, demand answers and know who the players are
and how to contact them.
-
Have Your Buyer or Tenant In Place: Contrary to some
modern day gurus who tell you to find and complete the
deal, and people will magical appear to buy or occupy
your property – that just doesn’t make good financial
sense. Does the movie “Pacific Heights” ring any bells?
My take is to have someone
waiting in the wings who is already pre-qualified and is
looking for that particular property, in that particular
neighborhood. This ingredient goes hand in hand with
ingredient # 2 at the beginning of this article, so before
you sign on the dotted line for any property make sure you
have a winning investing plan in place
There you have it my essential
ingredients to a successful real estate transaction; use
them and never worry again about coming out on the short end
of the real estate investing stick.
To your success…
"You are who you are and where you are because of what you
have put into your mind."
For more information or pricing please do not hesitate to
call or e-mail. I can be reached at:
( 508) 595-9567.
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