Buying, renovating, flipping low cost properties is not the way to riches. Working in the below $100,000 neighborhoods your profits won't take you very far. Consider that in most cases 3 months to 12 months to turn a property over before you do the next deal your profit may average $1,000 per month. You can make that working for some else part time without all of the headaches.
1.Bigger Profits bigger profits are in bigger deals. Working in the average price range and above in your area is a good place to start. Big-time investors say go where the money is at 2 to 3 times your average area sale price and higher. There are more handyman investors chasing the smaller deals and actually driving up the prices therefore making minimal profits.
2.Locate the Property These homes are available in almost every neighborhood. All over the country are foreclosure homes in every price range. There are million dollar foreclosures right here in Charlotte, NC. Work with a professional real estate agent be aggressive go after the bigger deals where there is less competition.
3.Making Offers the process is the same in no matter what the price range you work. Determine after repair value, subtract repairs, subtract carrying costs, subtract your overhead, and subtract your profit (minimum $25,000) equals maximum offer. Offer something way less than that and then negotiate to somewhere under your maximum offer amount.
4.Financing not very often are you going to get the same bank to finance a foreclosure deal. You can possibly get a bank to finance a construction loan if you can wade through all the paperwork, use your credit cards (old school) best are to keep on finding outside sources like hard money lenders, partners, private lenders, your self directed IRA, someone else's self directed IRA or anyone of your contacts who wants to make 10% to 12% on a first mortgage secured by real estate.
5.Repairs/Renovation speed and quality are what you need and are expecting from you workers. Hire or have on your team a group of excellent and competent contractors and suppliers. They may cost more but your savings in the 2 to 3 or 4 months in extra carrying cost after shoddy workmanship will off set the additional expense. Time is money, in this case big money.
6.Marketing/Selling start selling before you close on the purchase. Advertise for sale by owner when the agreement for sale is signed by you and the seller. You may be able to turn over the property at a profit and let your buyer close with the seller without any expense on your part. What is the ROI of $10,000 with $0 investment? Begin your advertising as an "as is" price, increase your sale price as you have work scheduled and ordered. By waiting until the project is complete to start advertising will put you 3 to 4 months behind in the process.
Working where the money is, is the same process as working on cheap houses just by adding more zeros to the end of the check. You work in better neighborhoods your appliances and fixtures won't get ripped off every weekend. There are more opportunities to sell in a place where people really want to live.
Bill Carey a Broker/Investor/Builder can help you save big dollars on your off campus real estate investments. Bill's 30 years experience in Real Estate Sales, Investments and Construction offers a unique perspective to the processes of Investment Grade Real Estate. Bill and his family own resort rentals and a number of Off-Campus student rental properties in southern states. This started when our oldest daughter went away to school at the University of South Carolina in Columbia, SC. The Carey family continues to buy and successfully rents resort and student rental properties
How to Save $50,000 plus on your Childs College Education. Log on to http://www.OffCampusHousingUSA.com 9 Steps to In-State Tuition. Student Rentals Real Money Makers. Check out the 9 part e-course on "How to Buy Your Student Rental Property"
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