Determine Your area – Research the entire marketplace (city, county, or region) find out what area has the biggest turn over of properties. Look at how the properties change hands foreclosures and distress sales are your best bet. Select a small portion of about 20,000 homes within the foreclosure distress sale area. You might also consider selecting by subdivisions to get up to 20,000.
And unless you are in Texas where Lease Options are against the law, you could probably do a Lease Option and structure it in such a way that when the market comes back up they could purchase the house that they are renting from you at a later date.
When you invest in a foreclosure, you get instant equity. This is very powerful purchase because the amount of equity gained in a home not only relieved the buyer of any of the price different, but also interest that was avoided due to this decision.
The seller asks for more money in exchange of flexing the terms. A Florida estate seller agreed to extend the payment schedule by 1o years in return of a higher sales price of ,000.
However, real estate invesment calls for certain qualities, such as a good credit record, a sound financial position, an appreciable income, bundles of dollars for down payment, and the lenders by your side.
Barnett suggests doing as much homework as possible. She states, “Last year, there were multiple offers on the property I bought. The seller takes a look and decides what they’ll accept. They don’t always take the highest price. What worked for me was I had cash and could close the deal sooner. I looked at the property, had inspectors check it out. I went with them. I got up on the roof with the inspector.” However, according to Bromma, the practice of doing your own research places you in the minority.
What if you significantly under estimate repairs? What if a ,000 projected repair budget turns into a ,000 budget instead? If you had decided to do a deal with a solid ,000 in profit, but your budget for repairs is suddenly ,000 higher, then you are working for free.
Then one day, I had the idea that I should probably invite the Burger king guy, too. He was also in Atlanta, and he covered exactly the same territories–the same seven states. Burger king accepted the invitation, and their organization came down for the special purpose of giving their side of the story, knowing full well that the McDonald’s guy was doing the class, too. So, I had McDonald’s guy come on Tuesday, while Burger King came on Wednesday.