Take These Steps On The Way To Your First Investment Purchase

Take These Steps On The Way To Your First Investment Purchase


You may have every intention of getting started in the real estate business, but unless you know how to get off the ground you won’t get very far. One of the worst things you can do is to blindly buy without having a firm strategy in place. All it takes is a few bad deals and you will quickly find yourself out of the business. Conversely, if you know how you are going to buy, in what areas and what your end goals are, you will be a much more efficient, effective investor. Before you make your first offer, there are a few basic steps every investor needs to take.

Be sure to start with a plan. The real estate business can be very overwhelming if you don’t have a plan. There are many different ways to close deals and numerous options once you do. Between flipping, wholesaling, foreclosure auctions, short sales and commercial properties, there are literally dozens of different scenarios that can come your way every day. The first thing you should do is to develop an idea of what kinds of properties you want, in what location and for what price point. When you are just starting out it is best to pick a certain area or property type and make that your focus. This way you will be able to quickly evaluate a property that comes your way. It really doesn’t matter what you decide to do – as long as you give it a fair shot for a prolonged period of time. Everything from condos to mobile homes can be profitable if you are educated and passionate about them. Start with a plan and be willing to stick to it.

  • Have an action plan: After you know where and how you are going to buy, you should be ready to act quickly. The more you know beforehand, the easier the process will be. Not every investor wants to rehab. There is nothing wrong with flipping property, but if your goals are more long term, you can focus on property that you can buy and hold. Your action plan should be directly in line with your goals. There will be plenty of people in your ear telling you what you should do or how you should do it. Stick to your guns and stay true to your vision. Certainly listen to everyone along the way, but never get off track based on someone’s opinion.
  • Know you exit strategy: Before you go into a project, you should have a good idea how you are going to get out. There are many new investors who think that if they buy low enough the will be able to make a profit. Not every deal you get is going to be a home run. You need to do your homework and look at true comparable sales. Just because you put work into the house doesn’t mean you will get the number you desire. You need to be realistic and accurate with what you want to, and can do, with the property once it is ready. Investors can always shift gears, but you should know if you are doing rehab work for an end buyer or with the intent to rent. This will have a direct impact on your budget and ultimately your bottom line.
  • Secure funding: This can arguably be the first thing you need to have in place. The only reason it isn’t is because if you are looking for hard money they will ask you what your plans and exit strategy are. If you have funds for a down payment and are looking for traditional lender financing, you should have a preapproval lined up. Depending on how you document your income, this may not be as easy as you think. Show your lender all of your income and assets and don’t move forward until you know you have a preapproval in place. Hard money lenders don’t necessarily look at this information: they look to see that you have an idea of where you will get deals and what you will do with them after you do. If you have deals you can find funding, but you won’t be able to do anything unless you can close.
  • Build reserves: Regardless if you are using your own money or a hard money lender, you will need some of your own reserves. Everything on a deal can cost money – from a title search to an inspection. You will also need money depending on what your goals are with the property. You don’t need tens of thousands of dollars to get started, but you should have enough to cover every day expenses and to generate business. Even inexpensive marketing methods like bandit signs will cost money. You don’t have to use all of your reserves but if you don’t have them it will cause you to struggle finding or closing deals.

Once you close your first deal, it will likely lead to many more. You may wait months for your first deal, but it is important to practice patience. If you don’t have everything lined up, you will get involved in deals that will be more trouble than they are worth. Your first investment deal is something you will remember throughout your business. If you want to remember it fondly, take steps to ensure you are ready to buy.

See more at: http://www.fortunebuilders.com/take-these-steps-on-the-way-to-your-first-investment-purchase/

Comments

  1. instacart says:

    It’s remarkable designed for me to have a web site, which is
    beneficial designed for my knowledge. thanks admin

  2. tinyurl.com says:

    I believe this is among the most significant info for me.

    And i am glad reading your article. But wanna remark on some common issues, The website style is perfect, the articles is really great : D.
    Good task, cheers

  3. Wonderful blog! I found it while searching on Yahoo News.
    Do you have any tips on how to get listed in Yahoo News?
    I’ve been trying for a while but I never seem to get there!
    Cheers

  4. Donnell says:

    For a long time, pewter jewellery has contained lead causing many unhealthy
    negative effects to the wearer.

  5. After years of regular progress within the industry, the global downturn contributed to
    a 3% fall in retail gross sales for 2009 to $30.7 billion.

  6. I love how you write, it had me thinking. I??m going to bookmark this.

  7. 色情电影 says:

    Hey There. I discovered your blog the use of msn. That is an extremely neatly written article. I will be sure to bookmark it and return to read extra of your useful information. Thanks for the post. I’ll definitely comeback.|

  8. Bolivia says:

    Very nice article. I absolutely love this site. Keep writing!|

  9. Hi there, I desire to subscribe for this website to take newest updates, thus where can i do it please assist.|

  10. Hiya! Quick question that’s completely off topic. Do you know how to make your site mobile friendly? My website looks weird when browsing from my iphone. I’m trying to find a theme or plugin that might be able to resolve this issue. If you have any suggestions, please share. Thanks!|

  11. I think this is one of the most vital info for me. And i’m glad reading your article. But wanna remark on few general things, The website style is great, the articles is really nice : D. Good job, cheers|

  12. When someone writes an article he/she retains the plan of a user in his/her mind that how a user can be aware of it. Thus that’s why this article is great. Thanks!|

  13. sex videos, says:

    Sweet blog! I found it while browsing on Yahoo News. Do you have any tips on how to get listed in Yahoo News? I’ve been trying for a while but I never seem to get there! Thank you|

  14. Greetings! Very useful advice within this post! It’s the little changes that make the biggest changes. Many thanks for sharing!|

  15. At this time I am going away to do my breakfast, when having my breakfast coming over again to read more news.|

  16. whoah this blog is fantastic i like reading your articles. Stay up the good work! You know, a lot of people are hunting round for this info, you can aid them greatly. |

  17. Thank you for another excellent post. Where else may anybody get that type of information in such an ideal means of writing? I have a presentation next week, and I’m on the search for such info.|

  18. fuckwit says:

    Hello Dear, are you really visiting this site regularly, if so afterward you will absolutely obtain fastidious experience.|

  19. PDS Maurice says:

    If you are going for finest contents like myself, just pay a quick visit this website everyday since it offers quality contents, thanks|

  20. Natalie Hinn says:

    Keep on writing, great job!|

  21. Hello, i read your blog occasionally and i own a similar one and i was just curious if you get a lot of spam comments? If so how do you stop it, any plugin or anything you can advise? I get so much lately it’s driving me crazy so any assistance is very much appreciated.|

  22. sportingbet says:

    You should take part in a contest for one of the best blogs online. I will highly recommend this website!|

  23. Thanks for every other fantastic post. The place else may anybody get that type of information in such a perfect method of writing? I’ve a presentation subsequent week, and I’m on the look for such information.|

  24. Hello there, just became aware of your blog through Google, and found that it’s really informative. I am gonna watch out for brussels. I’ll be grateful if you continue this in future. A lot of people will be benefited from your writing. Cheers!|

  25. Stunning quest there. What happened after? Good luck!|

  26. It’s awesome to go to see this site and reading the views of all mates about this piece of writing, while I am also eager of getting knowledge.|

  27. Its like you read my mind! You appear to know a lot about this, like you wrote the book in it or something. I think that you could do with a few pics to drive the message home a little bit, but instead of that, this is excellent blog. An excellent read. I’ll definitely be back.|

  28. pet service says:

    Hi there, I found your web site by means of Google even as searching for a comparable matter, your web site got here up, it appears to be like good. I’ve bookmarked it in my google bookmarks.

  29. Wow, this piece of writing is nice, my younger sister is analyzing these kinds of things, thus I am going to let know her.|

  30. This site definitely has all of the information I wanted concerning this subject and didn’t know who to ask. |

  31. My spouse and I stumbled over here from a different page and thought I might check things out. I like what I see so now i’m following you. Look forward to going over your web page yet again.|

  32. An outstanding share! I have just forwarded this onto a co-worker who had been conducting a little homework on this. And he in fact ordered me lunch simply because I stumbled upon it for him… lol. So let me reword this…. Thanks for the meal!! But yeah, thanx for spending the time to talk about this issue here on your internet site.|

  33. Spot on with this write-up, I really believe this website needs a lot more attention. I’ll probably be returning to see more, thanks for the info!|

  34. Ketamine says:

    I do trust all of the ideas you’ve presented on your post. They are very convincing and will definitely work. Nonetheless, the posts are very short for starters. May just you please prolong them a bit from next time? Thank you for the post.|

  35. Way cool! Some very valid points! I appreciate you writing this article plus the rest of the site is also really good.|

  36. This website was… how do you say it? Relevant!! Finally I’ve found something that helped me. Appreciate it!|

  37. avis negatif says:

    I pay a visit everyday some web sites and information sites to read posts, except this webpage offers feature based content.|

  38. gambling says:

    There’s certainly a great deal to find out about this topic. I love all of the points you’ve made.|

  39. porn movies says:

    Currently it looks like Expression Engine is the best blogging platform out there right now. (from what I’ve read) Is that what you are using on your blog?|

  40. Pretty nice post. I just stumbled upon your weblog and wanted to say that I have truly enjoyed browsing your blog posts. In any case I will be subscribing to your rss feed and I hope you write again very soon!|

  41. Viagra says:

    Hi there, can i share your content on my blog?

Leave a Reply

Your email address will not be published.

Top