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How To Start Investing In Real Estate

How To Start Investing In Real Estate

Steps on Successfully Launching a profitable Real Estate Portfolio

For many people the hardest part of getting your Real Estate Investing business started is overcoming the fear of the unknown that comes with attempting new things.bigstock-Saving-Money-8173913

Many of our clients got stuck before they even start… suffering from what we call “analysis paralysis”.

What we all need to understand is that fear will never go away no matter how many books you buy, or how many boot-camps and seminars you attend. The only way to get over this fear is by getting yourself in the game, you need to face your fears and execute! (and work with a great team like ours!)

You don’t need to start with huge deals to get started, or even any of our own money.

Often times, new investors think that they need to put everything on the line to get into real estate investing. That is not the case, in fact many of the deals get done without ever using any of your own money or credit.

It all starts by building a strong team, and they finally pulling the trigger and doing the first deal.

Here is an easy action guide for you to start using today, this will help you finally start working towards your goal of building a strong real estate portfolio and making some serious cash.

Follow these easy steps and you will be well on your way to being a successful real estate investor!

1) Attend a REIA / Meetup / Investment club meetings:

Networking with other investors is the key and also the first step to starting your investing career. The people you will meet at these events will be a big help to you while first getting started. We always say that “Relationships are the only shortcuts to success”. For a lot of us it can seem a little nerve wrecking in the beginning, but be rest assured that this is the most important step in starting your investing career. Another major bonus is that these meeting are usually low cost or free! So get out there and attend.

2) Learn from successful Investors:

Sometimes we need to see it before we can believe it. Meeting with an active successful investor will give you the inspiration you need to get your butt into action. When we first got started we made it a point to meet and surround ourselves with as many of these people as we could. We have all heard that saying…”You income is the exact average of the 5 people you hang out with most”…so why are you hanging out with your broke friends? If you need help finding successful investors to meet with, a REIA or Networking group as explained above is a great place to start.

3) Take Action:

Obviously the first stem in taking action is arming yourself with knowledge. You can talk to us if you have questions. But once you have a strategy, the only way to invest in your first deal is by finding your first deal!! Whatever your chosen model is, you need to find properties that meet your criteria to invest in. So if you are going to be looking for motivated sellers, then you need to get on the phone with sellers. The only way you can get better at the game is by talking to more and more people. Practice makes perfect, right? No! Perfect practice makes perfect! Practice your scripts, roll play your scripts and get on the PHONE!! Read this very carefully…TAKING ACTION WILL MAKE YOU RICH!!

Getting starting and making money investing in real estate is not easy, but when done correctly can provide a lifetime of cashflow!

What are you going to do to get started?

Your friends and local real estate experts,

San Diego Realtors

Oliver, Sam, Sandro

The Home Team

Contact us today:

Oliver Graf – Direct: (760)237-8006
Sandro Natale – Direct: (949)290-2599
Sam Khorramian – Direct: (858)518-1533

Have a question? —>Contact or Email us direct <—

Big Block Realty
Always working hard for you!
www.BigBlockRealty.com
CA DRE #01885775

Proudly serving all of San Diego County including: Oceanside, Carlsbad, Leucadia, La Costa, Encinitas, Cardiff, Del Mar, La Jolla, Pacific Beach, Escondido, San Marcos, Poway, Rancho Bernardo, Vista, Chula Vista, Spring Valley, Point Loma, Coronado, all other cities in San Diego!

BUYING OR SELLING?: Don’t forget our Free Home Search Tool.
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How to Flip A House And Make Money: 5 Tips For Quick Turning (Flipping) A House

5 Tips For Quick Turning (Flipping) A House

San Diego Real Estate Flips

On one of those “house flipping” shows on TV, a young couple was running $14,000 over budget on their first fixer-upper investment (and 11 weeks behind schedule). They ran out of money and put the house on the market with a low quality looking “fix-ups” and visible damage still needing to be taken care of. Of course buyers would see these things first, making a bad impression. You can avoid this by starting with changes that are most important. Then if you run out of money or time, you’ve already done the things that will make the home sell.

When quick turning or “flipping” property the first two tips are not about what to fix or change, but rather about time and money. Specifically, they are about how to determine how much to pay for your “quick turn property” in the first place. Read through the first two with caution then and make sure that you follow these carefully.

1. Know Your Numbers

Knowing the numbers will be a key to your success when looking to invest in real estate. What price will the house sell for after you are all done with the fix-ups? You need a clear idea of the ARV (after repair value) to safely make an offer on a property. Do not guess that you’ll sell the home for $20,000 more than what you put into it. You don’t decide what a home is worth – the market does, so get advice if necessary. Then subtract from the ARV all possible costs you will have, including price, buying costs, repair costs, holding costs, and the costs of selling. Now subtract the profit you want, and you have the highest price you should pay. Start with an offer lower than this, of course.

2. Stay on Schedule

You HAVE to set a schedule and stick to it. Too many house-flipping projects have gone wrong due to falling behind schedule. For example, you think you can get the plumber in and out of the house in the first week, but it takes a month, so you can’t close the walls up, and everything else gets behind schedule. Meanwhile you’re spending $2,500 per month on holding costs like loan payments, utilities, property taxes and insurance. Be sure to check before you finalize the offer, to see how long things like windows, plumbing and dry-walling will take. Also, make completion dates a part of any contracts you sign with contractors.

3. Figure the ROI of Improvements

Some improvements will have a much higher ROI. The Return-on-investment (ROI) for each possible improvement should determine what you do to the home. You’ll be guessing at times, but the principle is that you do only those things which increase the value of the home substantially more than what they cost. Such high-ROI improvements vary by area and by type of home, but they typically include painting, carpeting, landscaping, and finishing unfinished space. With a small house, you might get new flowers and bushes, fresh paint, and all new carpeting for less than $7,000, and possibly raise the market value of the home by $14,000.

4. Know Your Buyers

You need to know as much as possible about your potential buyers. A single story Spanish style home in a neighborhood full of retired couples, won’t sell well to the younger crowd. Know what kinds of buyers are likely to want the home (and neighborhood) before you start. Then, after improving it with those buyers in mind, market it appropriately. You or your agent should identify and advertise the benefits that matter to your buyers, whether this includes “close to stores” or “country living.”

5. Price It Right

This is the key to having success and selling fast. Selling fast means you can save thousands of dollars in holding costs. You may also have other projects waiting for that money. To sell fast, price it slightly below market value – and let buyers know it’s a deal. It may seem that if you sell for $3,000 under market, you’re losing $3,000, but you are possibly saving a couple thousand in the holding costs you’ll pay if it takes an extra six weeks to sell at a higher price. Also, if you are a serious investor, flipping a house fast means getting the money into your next project fast. Buy right, and use the other tips here, and there should be plenty of profit left in any case. These tips are the foundation for having massive success in the house flipping business.

Now you can go out and make it happen!

If you need any help or have any questions, feel free to contact me anytime.

Your friends and local real estate experts,

Oliver, Sam, Sandro

The Home Team

Contact us anytime:

Oliver Graf – Direct: (760)237-8006
Sandro Natale – Direct: (949)290-2599
Sam Khorramian – Direct: (858)518-1533

Have a question? —>Contact us direct <—

Big Block Realty
Always working hard for you!
www.BigBlockRealty.com
CA DRE #01885775

BUYING OR SELLING?: Don’t forget our Free Home Search Tool.
Search the MLS anytime! http://www.FreeSDHomeSearch.com

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Posted in FreeSDHomeSearch