When I first started as a real estate investor, I thought I should buy as many properties as I possible can. A property allows you to make money with out any limit, but there are only two methods that are commonly used.
Method 1) Buy and flip: Find a TLC / Handyman Special / or a Total Rehab property then buy It very low and sell it higher including cost of repair and labor. And in this market if you search hard enough you can buy a short sale with little or no work needed. Method
2) Buy and hold: When you purchase a property hold it to generate income and appreciate in value over time. Real estate demand continues to grow as population continues to grow and people are willing to pay for place to live.
The two common problems investor doesn’t invest into Real estate.
Problem 1) Tenant problems is the biggest reason investor quit in real estate before reaping the benefit of investment appreciation. There are many avenues you can take to tackle this problem, hire a management company many big investor that buy 15 or more units use a management company. Want more for your buck; hire a small management company that is flexible with their fees: most small company is just starting off and wants more business. Another avenue is to hire a realtor to rent the property and to help in (problem with tenants, in the eviction, get advice , knowledge about the area, rental of apartment, or just maintaining a property) for very low cost but with much more benefit.
Problem2) Over spending on budget: When flipping houses many investor don’t know what to look for or even have budget in place. Understand that a investment needs to keep cost low but sell it quickly. My experience as an investor on flipping property was a eye opening experience and hit on my net profit. So hire a realtor that has good track record working with BUYER’S they know what a buyer looks at when buying a property. And don’t go over broad with high end product where houses in your market is selling with low end product example (crown molding, cherry hardwood floor, etcc) When flipping a property focus on, Kitchens – Bath room: now every property should have 2 bathrooms, and don’t forget to keep good layout of the property.
Hire a local realtor with 2 or more year of experience in the market, for investors this is best time to buy don’t miss this boat again. Start small with Buy and hold. Good Luck.
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