I got started in real estate investing a couple years ago when I was 20. I am now 22 years old and full time in real estate, if I can do it so can you! Investing in real estate may seem daunting and a lot harder than it actually is. The main thing to make money in real estate and save you from making too big of mistakes is buying houses at a good price. When you buy a house at a deep enough discount it is going to be hard for you to lose money and that should be the goal. I own the Company, Cash Offer Man which is a local company in St. Louis that buys houses for Cash and AS-IS. When I started this company getting good deals was the hardest part, but it is all about your systems and process and what you are doing to find good deals.
To be a successful real estate investor you need to make a lot of offers. Most offers you make are not going to get accepted and that is just fine. People think this business can be shady and people are taking advantage of people, but when you are open and honest about your process and where you got your offer from, people understand. If the numbers work great if not you can still leave as friends.
When trying to figure out what to offer on a house, you want to make sure that you are going to be able to exit the property as you want. If you plan on flipping the property you need to make sure you have enough room to make a profit, ideally you want to have a buffer for the rehab costing more and the selling price to be lower so you are protected. If you are planning on keeping the house as a rental, many people want to make sure they are going to be all in under 80% of the appraised value when your rehab is done so they can get their money back from doing a refinance loan.
The strategy is known as the BRRRR method, which stands for Buy, Rehab, Rent, Refinance, Repeat which is a way for you to accumulate rentals with no money or very little money left in the property and still have a cash flowing house with equity. To buy the property you can use a hard money lender which will lend you up to 100% of the cost to purchase and rehab and then you rent out the property after rehabbing it and then you can refinance which will allow you to pay off the hard money lender and get a new long term mortgage on the property. This is one of the easiest ways to get into real estate. You can easily add several properties your first year.
Many peoples biggest struggle is taking action, they spend all their time thinking about what to do, how to do it, and try and make it perfect. The best thing to do in business and especially real estate is imperfect action. Start taking action by looking at properties and making offers and figure out what works for you along the way. This is how I have closed on over 25 deals with Cash Offer Man in my first 2 years in business. We are not stopping and if you a have property, give me a call today and I will get you an offer!
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