How to Become a Successful Real Estate Investor
By Jeanette Joy Fisher
Many folks dream of becoming real estate investors, but not everyone has what it takes. If
you're dreaming of becoming an investor, here are several important questions to
consider, long before you buy your first investment property:
1) Why would a homeowner sell a house at a
bargain price?
Many things happen in people’s lives that
make their home suddenly become a burden. Loss of income, divorce, or illness
are the most common, but sometimes a homeowner dies, leaving a home that none of
their heirs wants. In any case, the home has become a
problem, which is where you, as an investor, come in. The homeowners, or the heirs,
have a problem, and you must find a way to offer a solution.
2) What types of houses should you look
for?
Besides being owned by someone who no longer
wants or can afford to stay in a property, you want to find a home that’s only
tired, and not in need of structural work in order to favorably compete with
similar houses on the market. We call that type of house a
"doghouse."
3) How do you find doghouses?
Your real estate agent can scan the
MLS listings, looking for fixer-uppers, handyman
specials, or as-is houses. You can also find similar properties yourself, using
the local newspaper or shopper.
4) Should you try to close
quickly?
This is an important step in becoming
successful, because beleaguered sellers will almost always be in need of money
in as short a time as possible. Get yourself prequalified and preapproved for a loan, so you can close on the
property quickly. Being able to let sellers know they'll get paid fast will
consistently net you more houses than your competition.
5) How do you flip houses fast?
Find ugly homes, in good neighborhoods, that
need as little work as possible. Clean them up, paint them inside and out, and
install a neutral shade of new carpet, and you should be able to flip the home
in a short amount of time. Always keep your limitations in mind. Hiring
professionals for repairs will cut into your profit margin.
Asking yourself these questions will help
get you started in your real estate investment career, and keeping these answers
in mind at all times will keep you from making costly mistakes as you buy and
sell investment properties.
(c) Copyright 2004, Jeanette J. Fisher. All
rights reserved.
Professor Jeanette Fisher, author of
Doghouse to Dollhouse for Dollars, Joy to the Home, and other books teaches Real
Estate Investing and Design Psychology. For more articles, tips, reports,
newsletters, and sales flyer template, see
http://www.doghousetodollhousefordollars.com/pages/5/index.htm
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