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Tuesday's Tip #23

By Derek Guyer

Real Estate Agent with Land Chasers

July 10, 2007 10:13 AM

FAQ’s

Q: When investing in real estate, what makes for a good investment?
A: It has to make money.

Q: How do you make money in investment real estate?
A: Through long term cash flow, quick flips, rehabbing, etc.

Q: How do you avoid losing money in investment real estate and balance out the risks involved?
A: Exit strategies and planning.

Do you have a plan? Do you even know what exit strategies are? If not, it may be time for you to take a step back and learn a little bit more before you go any further. I’m seeing way too many buyers walking into real estate investing with no clue what they’re doing. It’s not fair to the lenders, the buyers or the market.

Are you a real estate investor or just simply a buyer of real estate?

Tuesday’s Tip: Anyone can buy real estate, but not everyone can invest in it. Learn the difference and then you’ll start making money.

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Todd and Danielle Millar

Glenn Simon Inc. - Edmonton, AB

Nineteen years of excellence!

Hi Derek,

Cute baby! I think one point is to make sure you make money when you buy your real estate not at some foggy point in the future. I know that comes into the area of exit strategy but I think people should buy to make a profit at purchase. That means undervalued properties, great negotiation techniques, renovating and mortgage terms to name a few....

Cheers!

Danielle

Jul 10, 2007 10:56 AM

Derek Guyer

Land Chasers - Indianapolis, IN

Thanks, Danielle. I think she's cute as well to say the very least.

I know I left this vague, but that's what my point was. Once you learn what it means to really invest, you'll understand that just buying real estate and investing in it are totally different. That difference makes all of the difference in the world.

You can't buy for $10k less than value on a $100k home and expect to make that $10k back in profit the next month. You have to buy it with $40k equity and expect to make $25-30k in profit. That takes planning and exit strategies.

Jul 10, 2007 11:41 AM

Chris Lengquist

Ad Astra Realty - Olathe, KS

Kansas City Real Estate Investing

it's just numbers and acceptable ratios. What are those? That depends on the individual. But they need to know the numbers going in.

Jul 12, 2007 03:27 PM

Tuesday's Tip #23

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Derek Guyer

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