DON’T LOOK WHERE YOU DON’T WANT TO GO Are you familiar with the idea that we tend to attract more of what we focus on? Here’s a great story that perfectly illustrates this concept.
To Invest or Not To Invest
Have you seen the TV shows where the young couple flips a house and makes a fortune doing it? Kinda gives you "investor fever" doesn't it!? Like everything else, it's not quite as easy as it looks, but definitely something to think about if you've got the skin for it. Here are some points to consider:
1. You'll need to look for "distressed" homes. Those are the ones where you stand to make the most profit.
2. Cash is king! You'll need to get creative when finding a funding source. Traditional lending won't always work on a distressed property that you don't plan to occupy.
3. Have a professional REALTOR determine what your "subject to" value will be after repairs.
4. Have a professional REALTOR find the average days on market for the home and add your repair time to that for your total "hold time".
5. Factor in the following costs:
Cost of repairs (labor and materials)
Hard money costs (gotta pay your money source)
Cost of lawn maintenance during the hold period
Cost of utilities during the hold period
Prorated property taxes for hold period
Prorated HOA dues for hold period
Insurance for duration of hold period
Closing costs for when you purchase AND sell
Costs associated with resale (realtor, etc.)
Most importantly, YOUR PROFIT!
Have fun and good luck!
I was a domestic paralegal for 8 years prior to Real Estate. Since I have been in Real Estate I have grown to love this business, even though it does have it's challenges; it is very exciting. There i....
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