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USA Real Estate Blog

Six Helpful Steps to Know About Real Estate Investing

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A motivated hardworking real estate investor can create a lucrative business by flipping houses, and in doing so they are investing in and improving neighborhoods across the country. As explained at the Tarek & Christina seminars, this is a win for the seller, a win for the buyer, and a win for the community. Read on for a few helpful tips on real estate investing from the Tarek & Christina seminars.

Step 1: Finding the Amazing Deal

Doing the research and the boots-on-the-ground work is where you will likely spend the most time. There are many online resources from which you can locate possible real estate investments. Check out the MLS (Multiple Listing Service), but keep in mind that with these properties you will be working with a realtor which will eat into some of your profit. Better yet, check out For Sale By Owner sites like Zillow, FSBO, and flatfeelisting.com, or homes listed on social media like Facebook and Craigslist.

Drive through neighborhoods and identify properties that appear to have been vacant for an extended period of time. Look for unkept lawns and piling newspapers. Property information is public record, and most municipalities will have online access where you can get further detail about past owners, building permits, or delinquent taxes to help you determine how motivated a seller may be.

Step 2: The Excitement of the Offer

Once you have submitted an offer, the anticipation builds as you wait for the thrill of acceptance. Do not waste anyone’s time, make a reasonable offer, and plan for some negotiations, keeping the numbers in mind at all times. After an offer has been accepted and fully executed, that is when the fun and creativity begin. The Tarek & Christina seminars have wonderful workshops that help you determine what must be done, how it should be done, where you can splurge and where you can save and still see maximum profit.

Step 3: Dream v. Reality

The numbers, in other words, your budget, are a part of every single one of these steps. Do not make a tight deal that requires that every part of the rehab go exactly as planned in order to make a profit. Plan for the worst (a whole house electrical upgrade) and hope for the best (minor repairs that allow more design fun). If housing repair surprises come your way, and they will, be prepared to adjust other measures to maintain liquidity. Going over budget a little bit is OK, but you put way too much work into this to just break even, or, worse yet, end up in the red.

Step 4: Where Should the Money Go?

Whether you are buying a fixer-upper that will become your home or flipping houses as investment properties, always keep in the back of your mind what you would like to see in a home. It is important to prioritize rooms. Buyers are most times going to be more particular about the kitchen and the bathroom, and these are also two rooms in which rehab can add the most value. If necessary, you can look for less expensive, but quality, options in lesser-used rooms like guest rooms and offices.

When choosing your materials, think about the location of the property and what will sell and what will not. You may be able to save money by installing less expensive cabinets and countertops, but if the neighborhood is such that only custom cabinets and marble will sell, it is better to lower your profit margin than not be able to sell at all.

Step 5: The Transformation

This is probably the second most rewarding part of a real estate investment. Take before and after pictures so you can see the progress of your investment and creativity. Oftentimes your rehab projects are making something from nothing, and the beauty is, you will see a snowball effect in the neighborhood. When one house gets new siding, neighboring houses will realize how dull their property may look and start doing some repair work themselves. Before you know it, the neighborhood has been transformed, which is good for everyone.

Step 6: Share the Happiness

If you have done all this work and are moving into your new beautiful home, enjoy the splendor and share it with friends and family. As a real estate investor, you will delight in the gleeful spark in the eyes of the new buyers.

For more information about real estate investing and house flipping, check out the Tarek & Christina seminars and their informative blog.

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