Welcome Real Estate Investors
We’ll help you find properties to invest in.
Am I ready to invest? – If you are ready to invest you have the desire, financial capacity, knowledge and skill to plan and execute the strategy, and time and energy to move it forward. If not… you may want to bring someone to fill the gaps, or don’t invest.
Real estate is a business – Like it or not owning real estate is not hands off! Money is made when you follow good business practices with the managers, products, customers, and finances.
Investment types – There are 6 types of properties: single family homes, condos, half-plexes, duplexes, triplexes and fourplexes. The first 3 are 1 unit properties, the others are 2-4 units.
How to Make Money $$:
Holding or flipping – Two common ways to make money are holding for cash flow or long term for appreciation or buying a property to fix and sell for more, aka. flipping.
Cash Flow & Equity Position – Two strategies to make money are through cash flow, receiving money from rents every month, or increasing the value (Equity Position) in the property through improving it or waiting for the market to increase in price.
You make money on the buy – there is a common saying in real estate, “you make money when you buy, not when you sell“. This is true because the rents and expenses are already fairly set, the potential for improvements are in the property, and the area will increase based on its location.
Stress Busters & Risk Reducers:
Run the numbers – It is vitally important to know if you will make money. For rentals run the estimated rents, expenses, repairs, and loan payment to see if you make money monthly. For flips the purchase price, costs to fix, and holding costs compared to sale price less expenses.
Real estate cycles – As a market goes up and down, knowing where you are in the cycle is very important and can provide some of the strongest results in investment growth. Be aware that many areas have very small increases in their market cycle where little appreciation can be had.
Create value – A more advanced strategy in residential investing is to create value with a property. Value could be in the form of a low purchase price, low rents that can be raised, and repairs that will return much more in equity than they cost to complete.