Real Estate Investment Math
Investor + Realtor Loyalty = Success!
By Peter Vekselman
The author has permitted the reprinting and redistribution of this
article.
You may be reading in the real estate blogosphere and hearing from the
experts out there, that now is a great time for real estate investing,
due to the incredible amount of deals and foreclosures that exist
across the country. Banks are giving homes away.
I do agree as I work with these deals all the time. However real estate
investing can be a risky business and a very slippery slope. One thing
that is indisputable, investing in Real Estate involves MATH.
Yes our favorite subject. But it is really quite easy and Here it is
INVESTOR + REALTOR LOYALTY= SUCCESS
1. First, you must, not it would be nice if you did, but you must
interview local real estate agents in the area you are thinking of
investing, because they are in the trenches every day with buyers.
Realtors know what buyers want, what neighborhoods are in transition,
declining, revitalizing and which areas will likely bring investors the
best return on their investment down the road.
2, Once you have interviewed several Realtors to see which ones are
selling, not just listing the properties in your chosen area then
commit to them. Let me say this again....commit to your Realtor because
they will work hard to make the entire transaction smooth and bring it
to its ultimate conclusion....closing.
There are many, many steps along the way from contract to closing. If
you are loyal to your Realtor, they will be loyal to you and will be a
considerable asset in your investment plans. As a good investor you
must realize the importance of having a good real estate agent in your
corner. It can mean the difference between success and failure. Your
TIME is money and your Realtor saves you an incredible amount of time,
from negotiating the contract, to setting up the inspection, to working
with the lender, appraiser and the closing attorney, the list goes on
and on.
3. If you buy to renovate and resell, guess what The Realtors are a
wealth of information when it comes to contractors who they recommend
for your project. They have had the opportunity to see how these
contractors work, their fees, their reliability, etc. Bad contractors
can eat away at your profits quickly, so you need good ones.
4. Okay, so now you are ready to resell the property. It is here where
many investors think the hard part is over. They think they will just
put a FOR SALE BY OWNER (FSBO) sign in the yard and sell this thing on
their own. BIG mistake in this market. Now more than ever you need a
Realtor working hard to get the home sold. They have access to buyers
that you do not, when a buyer does comes along, again the negotiation
process starts and you do not have to deal with that buyer face to
face. As an investor there are significant benefits in NOT having to
deal with the buyers directly. Remember TIME is money and many
investors mistakenly think, hey I can sell this home on my own and save
thousands in commission, but forget to realize that they will likely
hold onto that property for a longer period of time than if they had
used a Realtor from the start.
Here is what happens so many times. Investor puts the
home on the market on their own, it sits there unsold for a few months
or more and THEN they call upon the Realtor. Well they have just lost
equity by having to pay their mortgage note for the months that the
home sat unsold on the market. Realtors will tell you, the longer it
sits, it becomes stale and you will most likely have to reduce your
price to sell.
Depending upon your margin, you may have lost most if not all of your
profitequity...not a good situation, but one in which many investors
fall into.
5. If you use a knowledgeable Realtor to buy the home, use the same
Realtor to sell the home (why not, they know all about it from start to
finish). If you stay loyal to the Realtor, guess what They will become
a bird dog for you and start finding YOU the deals. Now that is what I
call Success!
Investor + Realtor Loyalty= Success. There is NO fuzzy math
here....Agreed
Now go out there and do good things! Invest in Real Estate Today but do
not go it alone, get the training, coaching and mentoring you need to
reap the rewards this business can bring to you.
Peter Vekselman has been successfully investing in real estate since
1996. He has completed over 1000 real estate deals, owned a
construction company, been a private lender, and owned a property
management company. Peter currently works with clients all over the US
httpwww.CoachingByPeter.com .
If
you would like to take advantage of the market and learn how to invest
in real estate and you are local to the Dallas Fort Worth area, I know
a really great teacher and mentor here in Arlington Texas. Please take
a look at his web site: DennisJHenson.com,
Dennis has a great Mentoring and training program, I know because I am
one of his former students. I learned a lot from his one on one
teaching technique. - Michael Harman 817-457-7572
mchfun.business@gmail.com
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