MultiplyMyIncome
02-21-2008, 11:54 AM
When you’re first starting out as a real estate investor, you may be overwhelmed by all of the rules and guidelines that the seasoned investors seem to follow. It is undeniable that an unspoken etiquette exists when buying and selling houses as investors. The difficult part for newer investors is trying to learn and remember all of the “rules of thumb” that change quarterly as the market pendulum swings up and down. For example, buying real estate at a fair price in a seller’s market may make some investors anxious and sometimes suspicious; while trying to sell a property in a buyer’s market may have their heads spinning with numbers they weren’t realistically prepared to offer.
Do NOT FRET: All of your worries can be pushed aside. With the proper preparation, knowledge, and right strategy, a resourceful real estate investor can make money on his/her properties in any market--whether on the buying or selling end of it. The key is having a specific marketing objective that reaches the right audience, at the right time, with the right message.
The first step as a savvy real estate investor is to buy smart. The money you make on any deal is truly made when you buy a property and the way you structure how you take over the property. You DO NOT want to pay more than necessary. One way to do this is to make sure you have a motivated seller—someone who needs to move on because of time or money constraints and who is not holding out for top dollar.
In a seller's market especially (opposite of today’s buyer’s market), you’ll want to target people who are desperate and need a buyer to quickly take the property off of their hands so they can feel some financial relief. They may need to pay off debt end a divorce, or situate a house of a lost loved one. There needs to be some motivating factor that will mentally shift them from squeezing every last penny out of the sale to selling on your terms. Look for "for sale by owner" ads and signs, and inquire as to why the individual would want to sell such a fantastic piece of real estate, helping you to identify if your seller is a motivated seller.
When it comes to selling the property, a real estate investor cannot expect the same type of client that mortgage lenders and banks look for. These individuals will simply obtain traditional mortgage loans to purchase homes. Real estate investors should, in fact, be little concerned with a buyer's market because the target audience would be those who cannot afford to buy or do not qualify for a standard mortgage loan in any market based on credit, employment, and other general factors that banks consider before approving a mortgage loan. These individuals need nontraditional financing methods regardless of a buyer's or seller's market and will be glad to agree to your terms for a lease purchase or rent-to-own scenario.
In both markets, real estate investors can pull off excellent profit margins, as long as they look for the right target audience and make intelligent decisions. Patience is important, as is knowledge of the potential sellers and buyers with which the investor will be working. Making a hasty or rash decision is where real estate investors run into trouble, making mistakes frequently and not looking at the whole picture. Whether stuck in a buyer's market where it seems all too easy to obtain a standard mortgage loan or in a seller's market where it takes a little more legwork and research to find motivated sellers, a creative real estate investor can profit from intelligent business decisions.
Do NOT FRET: All of your worries can be pushed aside. With the proper preparation, knowledge, and right strategy, a resourceful real estate investor can make money on his/her properties in any market--whether on the buying or selling end of it. The key is having a specific marketing objective that reaches the right audience, at the right time, with the right message.
The first step as a savvy real estate investor is to buy smart. The money you make on any deal is truly made when you buy a property and the way you structure how you take over the property. You DO NOT want to pay more than necessary. One way to do this is to make sure you have a motivated seller—someone who needs to move on because of time or money constraints and who is not holding out for top dollar.
In a seller's market especially (opposite of today’s buyer’s market), you’ll want to target people who are desperate and need a buyer to quickly take the property off of their hands so they can feel some financial relief. They may need to pay off debt end a divorce, or situate a house of a lost loved one. There needs to be some motivating factor that will mentally shift them from squeezing every last penny out of the sale to selling on your terms. Look for "for sale by owner" ads and signs, and inquire as to why the individual would want to sell such a fantastic piece of real estate, helping you to identify if your seller is a motivated seller.
When it comes to selling the property, a real estate investor cannot expect the same type of client that mortgage lenders and banks look for. These individuals will simply obtain traditional mortgage loans to purchase homes. Real estate investors should, in fact, be little concerned with a buyer's market because the target audience would be those who cannot afford to buy or do not qualify for a standard mortgage loan in any market based on credit, employment, and other general factors that banks consider before approving a mortgage loan. These individuals need nontraditional financing methods regardless of a buyer's or seller's market and will be glad to agree to your terms for a lease purchase or rent-to-own scenario.
In both markets, real estate investors can pull off excellent profit margins, as long as they look for the right target audience and make intelligent decisions. Patience is important, as is knowledge of the potential sellers and buyers with which the investor will be working. Making a hasty or rash decision is where real estate investors run into trouble, making mistakes frequently and not looking at the whole picture. Whether stuck in a buyer's market where it seems all too easy to obtain a standard mortgage loan or in a seller's market where it takes a little more legwork and research to find motivated sellers, a creative real estate investor can profit from intelligent business decisions.