Investing in real estate is always good and sometimes red hot. In the heat of the day, real estate conferences begin to circulate across the country, and thousands of people spend thousands of dollars on the investment.
It is amazing to read that of all the thousands of people who like to attend these conferences about 5% buy one investment house. Why? Guru’s real estate sells “sizzle” and makes a profit from real estate sounds easy. True, it is simple, but it is not as easy as it’s sounds.
Here is a quick plan that will get anyone to start building financial freedom from investing in real estate business.
There are basically four steps to investing in real estate business and the four is a single-family:
1. Buy homes below full market value. Yes, people are actually selling homes for less than the full price value of a home. It is important to note that most homeowners will consider the offer of a full purchase and also prices ranging within 5% to 10% of their asking price.
A successful investor learns to find financially frustrated homeowners who have no choice but to sell at a low market price value. They find like home owners who had lost their jobs or were suddenly transferred; they are divorcing; they were living beyond their means; the family is frustrated with medical bills and, not these days, their money has gone to support their drug habit.
Those are examples of dynamic marketers. They have to sell and they will receive something unusual low price.
2. How do you find motivated marketers? It works! As with any business, it is important to develop a small marketing plan. One simple, yet highly effective one was proven 75 years ago by the Fuller Brush company; door and city.
You sell your skills as a home buyer to people who have to sell. They are not there when they need you and you have the ability to help them solve at least part of their problem. By applying the door and door principle, you will learn more and buy more homes faster than any other method. However, most people do not want to go from house to house three or four hours a week. OK, there are other ways for you to go.
You can view public notifications of pre-sale announcements. Meeting a homeowner as soon as you receive a notification of the possible of a home allows you to deal with a very enthusiastic seller. Other public notices that offer opportunities to purchase include probates, divorce, and bankruptcy. You can follow the list of Homes For sale in your local newspaper or on the Internet.
You can call the names found in these notices or, for a limited time, send a postcard expressing your interest in purchasing their property. It will create the buying opportunities for you and as well as personal communication.
3. Once you have found a dynamic seller you should understand how to create an offer that offers benefits to you and the homeowner. A good asset investor quickly discovers that this is not a business of stealing goods but solving problems in a way that benefits the seller.
The homeowner is in a strong position of some sort and you possibly can save them from public embarrassment and, in most cases, give them at least a small amount of money to get a fresh start with their life.
No investor can afford to leave money on all deals. No one and even the Bill Gate that has so much money wouldn’t do such either. You should use creative techniques such as lease, option, and take over the payment of collateral. Little or no money is needed for such agreements. You can find a lot of unlimited items that can be priced at those courses in bookstores or on eBay and Amazon. The same courses or principles that seminars sell for thousands of dollars can be find in those books as well.
4. You make your profit when you shop! Never buy until you have carefully decided on how you will get your profit. If you hold it as a long-term investment is the monthly rental income more than the monthly rent? Will you sell it to another investor for quick cash? Will you repair and sell the property at the full price? Will you sell it quickly to get more desirable goods? All these and many more questions must be taking to consideration in your plan before you buy such a home.
- There, you have four steps that even a just come investor can do in three to four hours a week. What is the missing ingredient then? Well! I will say it’s your determination and perseverance. If you try to follow the aformentioned methods above with a good plan for a few months, then you will be on your way to financial freedom.