5 Critical Questions For New Real Estate Investors
By Chris Goff
There several ways to invest in real estate with single family homes, condos, multi-family and commercial. But before you can invest in real estate, you must answer a few questions.
If you answered Yes to the second question, I would be focusing on wholesaling, lease-options, and seller financing.
If you answered Yes to question number 3, I would be focusing on the real estate strategy retailing.
If you answered Yes to question number 4, I would be focusing on lease-options and seller financing.
If you answered Yes to question 5, I would be focusing on seller financing and retailing.
How to invest in real estate really depends on your goals and finances. First write down how much money you could use to invest in real estate. Second, write down a list of people that have money and would like to invest in real estate. If this equals $0, then you cannot focus on retailing/fix and flip.
You will find yourself running in circles doing nothing. If you do have some money to invest, start with the foreclosures since there everywhere and you may wind up finding a great deal.
Answer the questions above truthfully and you can't say yes to all of them. I want you to pick one or two to start. This will ultimately determine how you should invest in real estate.
Here is some basic real estate investing information that walks you a deal in 7 steps. These tools are all great for evaluating leads.
The location of the property will usually determine what techniques you can use. Generally, Ugly Houses = Wholesale or Retail. Nice Houses = Options, Lease-Purchase, or Owner-Financing. Here’s what to look for:
2) Real Estate Bargains:
No matter what technique you use, you want to find good bargains. The better the bargain, the more you profit. Real estate bargains are usually the result of highly motivated sellers.
3) Motivated Sellers:
Motivated sellers are sellers that are in situations they need help with. Usually their property is the problem. Motivated sellers make good real estate deals for us. Be sure to write down all real estate investing information about the home
4) Gathering Information:
Gathering information will help you stay organized and give you the best possible analysis of a property. Be sure you have a Property Research Form, Property Inspection Sheet, and an All Cash Offer worksheet. Other information you will need is Repair values, qualifying the seller, and financing. Use all necessary information that can help you with your buying decisions. You will profit when you buy and realize it when you sell.
Your contracts must be bullet proof. You should always consult your attorney before using generic forms found online. There are several factors to consider when using contracts, for example, state laws.
6) Use Other People's Money (OPM):
Whenever you can use someone else's money, you have tremendous leverage. The seller will still receive what you have agreed upon. Here are some ways to use other people's money:
As the buyer, you can choose a Title Company to close your real estate transaction. A Title Company researches the title for any defects. They will then close your deal and give you title insurance.
There's a lot of real estate investing information out there but follow these 7 basics steps to get you started in real estate.