Real estate investors have many decisions to make, whether just starting out or seasoned, when it comes to acquiring properties. Some look to wholesale (in states where it is allowed), some to “Fix and Flip”, and others to buy and hold for long term gains. Each of those possibilities have their own pros and cons, along with a number of investors who are successful at each of them.
Each category requires a great deal of research leading up to finding potential investment opportunities. The amount of time needed is also a factor in determining the choice in working with a property. When wholesaling, the money is made at the closing with no further responsibility for the subject property. If doing a Fix and Flip, the likelihood is for weeks or months of repairs and upgrades to increase the value. For a “buy and hold”, the objective is long-term revenue, whether from leasing or tax advantages.
Some real estate investors make the mistake of being focused on only one of these possibilities while doing their research. Consequently, they might be missing out on a solid investment. It is understandable for a real estate investor to think that they do not have the bandwidth to, for example, engage in a costly and longtime upgrade despite the eventual profit potential.
The point is that a real estate investor should be doing his or her research looking for a solid investment. If he/she cannot work with it as intended, chances are there is another buyer (or partner) out there that would love to get in on a solid deal. Some investors are private lenders and/or cash buyers that look for a good deal. Even the best researcher isn’t able to find deals throughout the region, let alone the entire country.
For this reason, it is helpful to research properties in specific areas based on criteria used by other investors. Whether you are working with a real estate agent or not, you can do this research yourself. Comps on what properties are currently selling for are not enough to determine the strength of a potential investment.
By visiting PropertyChoiceDirect.com, you can learn how to access data about investment properties around the country, based on your investing criteria. You can compare against what other investors and buyers have recently done within the same community. For example, you can see recent successful fix and flips within a neighborhood so you can more easily compare.
If the numbers work for you, it is easy to work with any real estate agent you choose. But if the numbers are good but don’t work for you, you have something to offer to another investor or buyer and get paid even more for your efforts.
You can participate month to month with no contract required. Details at PropertyChoiceDirect.com.
Posts
No comments:
Post a Comment