Most Popular: January 2008 Archives

wholesale.jpg

So many times I get the question "How do I get started wholesaling properties?"

OK, here is the answer. I will give you the actual first step. And the best thing about it is that you can start implementing it RIGHT NOW! No preparing stuff, no setup steps, no excuses - you are ready now!

shapeimage_2.jpgAs a real estate investor, I’ve done it, seen it, or heard it all. The news is filled with doomsday predictions daily, and Real Estate investors are bailing left and right. The good news is, there is still money to be made in real estate, and with less and less real estate investors in the market, there’s even better deals to be had, and more money to be made than before. 
buypropertynomoneydown.jpgThe number one question we're continuously asked by new investors is “how do I get started investing in real estate without a bunch of money in the bank?” It’s a legitimate question. Let’s face it, most people that begin investing in real estate more than likely aren’t happy with their current financial situation in life, and are looking for and expecting more. Therefore, most of those people don’t have $10,000 - $40,000 in the bank to spend on their first property. Even if you happen to have excess money in the bank, maybe you don’t want to use it to acquire your investment properties. Whatever the situation, investing in real estate with no money down is a very important part of growing your real estate empire. 
flipprofits.jpgThere are countless changes, upgrades, and updates that can be made to any given property. What separates successful, long term real estate investors from the rest is the ability to maximize their resources (time and money), and in turn, their profits. This has become more important due to the relatively thin profit margins available in today’s real estate market compared the margins available over much of the past decade. Thinner profit margins leave a much smaller margin of error. In order to assure a much greater chance of success on a flip property, it’s absolutely crucial to maximize every ounce of your available resources for your flip project. No matter their timeline or their bankroll, investors doing flips always have limited resources because time equals money due to mounting carrying costs, and the more money expended on renovation equals less available profit on the back end. Therefore, it is crucial for each real estate investor to understand how to maximize their profits from a flip project. So let’s get started. You’ve followed the formula here and the tips and suggestions here, and you’ve identified a potential flip property. Now on to the planning stage.
investinbadmarket.jpgI recently wrote an article elsewhere on the site discussing investment strategy as it relates to finding potential rental properties. In that article I discussed the inverse relationship between rental properties and renovation / “flip” projects, and I received a lot of emails asking for elaboration on the subject. After clearing it with our company’s other lead partner, I’ve decided to answer the call for more elaboration, and describe in detail our company’s investment strategy. While you’ve already learned elsewhere on this site how our company evaluates “flip” properties and rental properties (see link above), this is how we put it all together. When I was starting out in real estate, one thing I looked everywhere for was real world success stories, and how individuals and investment companies got where they were. My thought was, if not necessary, there’s no reason to re-invent the wheel. The problem is, a majority of the time you can only find that type of information in books, and I didn’t feel like having to pay for it. Secondarily, I’ve always wondered, if you’re so good at real estate investing, why are you writing books instead? But I digress. Here is our strategy, free of charge, to the loyal readers of boozwatt.com:

findflip.jpgFlipping properties isn’t the same business as it used to be. Even as short as two years ago, “lipstick” alterations (meaning cosmetic changes such as paint and etc.) would yield massive returns. There’s no question that the market has changed, however. Discussions about the changing real estate market are on every news channel, every real estate website, and even within these pages of boozwatt.com. Flipping properties has become more of an art form now. It requires not only the transformation of a formerly ugly property to something of uniformly appealing taste (appealing to uniform taste is harder than it sounds), but also an efficient maximization of renovation dollars. The reality of today’s real estate market means that the margins on flipping properties is smaller. A prudent investor must buy for a good price, spend efficiently on the renovation, and then list below the market price in order to sell quickly and avoid carrying costs, which can become devastating the longer a home goes unsold. 

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