There are so many ways to earn your life. But if you want to make money in real estate flipping in 2008 then its going to take a different approach then when the market was running steadily along. In my DVD REI BASICS 101 basically take the approach of doing rehabs to pay down your debt and to build your cash reserves and then focus on buying rentals and using flips to pay them off.According the circumstance we stand, I would not recommend flipping to anyone due to all the hassles involved now. Finding a buyer is difficult and when you do find a buyer your only option left to sell on 100% financing is FHA which in combination with lenders being so tight right now its tough to get a home sold. So if you want to invest in real estate how would I recommend you get started now?I believe as a brand new investor you need to focus on buying 1-2 properties this year and holding them as rentals or rent to owns to eventually resell when the market changes again. Here is the step by step break down on how I would do it as a brand new investor.1) Consult to your banker and make sure what’s going on. Get prequalified for an 80% loan.2) Raising your source of funds for the 20% down. I recommend an equity line or a private lender.3) Talk to your potential dealer and Find your deal4) Buy your deal and place your tenant in it5) After 6 months go to another local commercial banker and refinance for what you owe and place a line of credit on your equity. Do not pull out all of your equity. You may want to pull some out for profit but do not pull it all out.6) In a few years when the market changes sell the homes and take home a substantial profit due to the low prices that are out there right now.This is how I recommend a new investor who has a stable income and a credit score over 620 to get started. Once the market picks up again then you can revert to my plan in my DVD but for right now be conservative, buy what you can comfortably handle, and understand that any profit you make will come off of credit lines and refinances in these houses.Now, what if you have no credit and no cash and you want to get started in real estate investing? First, I recommend picking up my No Cash No Credit DVD. This will go into detail about how to wholesale and assign contracts. Here is your guide.1) Network and get to know every investor in town. Find out what they buy and ask if they would pay you to find a good deal2) Find out which attorney in town understands investors and how they work.3) Find a deal and put an escape clause in it.4) Sell the deal to one of your investors.5) Build cash and fix your credit with the profits until you can eventually buy a home.This article above is how I recommend a new investor get started in 2008. The game has changed but there is always a way to make money if your willing to believe that you can make money, and you supply the action necessary to make it happen.
It doesn’t matter if you are thinking of buying investment real estate to augment your investment portfolio or if you are a first time investor getting ready to start a steady stream of lucrative investments. There are several considerations you must make as you consider your options, and failure to have ready answers for them will most likely spell failure for your venture.The top ten considerations when buying investment real estate are as follows:
Do you have a workable business plan? This goes a lot further than simply the three notations of “find property, close deal, repeat” and instead focuses on the various stages of the project and ensures that each step goes through without a hitch.
Are you clear about your minimum cash flow? Failure to be accurate to the last penny about the kind of money you are able to spend will cause you to let many a great deal go by as you are working on the merely good ones.
Do you know the bottom line return on investment you need to make for your fix and flip properties? While this in large part determines the kind of fixes you will undertake, it will also influence the neighborhoods you will buy into.
Do you have a reliable pool of investors ready to go? There is little more heartbreaking than having found a killer deal where you know you cannot lose and then one by one your investors drop out.
Are you clear on the steps to take to find the property you are thinking of buying?
Did you do your homework with respect to rents currently charted in the area you will be buying into? Did you check on the trends?
Are you sure that you will have no problem renting out the property? If you see a lot of “for rent” signs up, this should be a warning sign that the competition for renters is stiff.
Remember that buying investment real estate is only one part of the equation; managing it is the other. Do you have a property manager ready to take over as soon as the ink is dry on the deal?
Assuming that you are focusing on a certain type of real estate, do you have a set of rules by which you will govern your transactions?
Finally, do you have an alternate plan in case any of the pieces of your plan fall through?
While the latter sounds a lot like you are borrowing trouble, the sad reality rests in the fact that many a real estate deal goes sour not for lack of enthusiasm but because a sudden hurdle is not overcome.It is the savvy investor who not only capitalizes on such deals by snatching them up, but who also as an ace in the hole as needed to protect her- or himself from losing a deal. Having backup options will be of tremendous help if an investor drops out or your prospective property manager no longer is able to meet your needs.
Getting less traffic and leads for your real estate website lately? Are you already feeling as if you want to quit because you are not receiving the quantity that you should be receiving? Could this be a lesson to you for failing to keep up with the necessary qualities that a deserving real estate should really be doing? There could be something wrong with your marketing tactics and the way you communicate with your general market audience. It could also be a case of how you build relationship with complete strangers who are interested to learn all about real estate.Let us stop right there for now. Checking your marketing tactics is a very good idea. But you really wouldn’t have a complete clue how to do it, would you? How are you able to assess your very own marketing progress? At this point you may get confused, but don’t let it take over your entire system just yet There are still far better solutions than just thinking you are not an effective real estate agent.Instead of brooding over your mistakes and the factors that caused you to get this kind of shortcoming, try other real estate marketing tactics. Don’t stick to what you already have because you’ll never know if it really is the most effective marketing style for you. The person who has recommended it to you may have used it to his advantage while it didn’t work the same for you. This means that there are many variations of marketing styles available and real estate agents are supposed to go out there and find which ones are best for them. Do the same.At this point, it also calls for an effective learning opportunity. Just as you search for the most compatible marketing tactic for you and your real estate business, it’s also good to learn new and helpful strategies in using the convenience provided by the Internet. Perhaps, discover an updated approach to an already known marketing technique. By keeping yourself updated with the latest useful tactics in real estate marketing, you help yourself become a better real estate agent.