Finding good fixer-uppers is a skill which can make you hundreds of thousands of dollars a year in the real estate investing industry!
There are lots of ways in which you can improve your cash flow and the amount of time and money that you spend on any given property. Here are some of the ways in which you can find good fixer-upper properties and avoid those common mistakes which keep people from achieving their true potential in the world of real estate investing.
Two of the most important things to start with are the location and the design of the property – a place in a popular area with a solid design is a must if you want to be able to turn the property around quickly. Think about the local transportation and infrastructure and what it would actually be like to live in the area where the property is located. Next, consider the overall picture of the property. Are there any structural issues that could lead to problems down the line? One thing that you certainly do not want to do is to spend time and money working on the foundation or the bones of the property, or pouring money into basic systems, because these aspects of a home do not provide a strong incentive to buy, they are simply expected to be there.
Remember that more often than not you are making the bulk of your profit when you buy – look for the motivated seller who is not even interested in putting the time and money into relatively minor cosmetic changes which could substantially increase the value of the property, and who is willing to sell for a price which is very competitive for the local market. Successful fixer-upper opportunities from motivated sellers will give you the highest levels of profit, so a relatively small amount of time put into researching sellers will save you a lot of time and money in the future.
Finally, arrange your financing for the property in the way which is least expensive to you. Use as little of your own money as possible when you are arranging the purchase of the property and take full advantage of loans and good financial strategies. Don’t lose the money that you are making from locating motivated sellers and excellent fixer-uppers by making mistakes on paper! Follow all of these pieces of advice and you will be able to be a big success in the real estate investing market!
PS I’ve never seen anybody do what Frank is doing and I’m excited to share this with you today… Happy Investing, Jamie P.S.: To learn more, go to: http://foreclosurecashprofits.com/go/?thankyou-page=945
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Internet Marketing.Real Estate Invester.