#flipping tips

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How To Become A Rehabbing Expert With Little To No Experience

Do you want to be a rehabber but don’t know how to operate an electric screwdriver? As crazy as it may sound you don’t need to be a handy person to be a rehabber. Sure, it is a help but far from a prerequisite in getting started. There are many rehabbers all over the country who got their start without knowing the first thing about home improvement. They gained their skills and experience from every project they were on until they knew enough to run a project on their own. Conversely, most handy people think they know the process well enough to dive right into the world of rehab. What they find is that it takes more than the handy person knowledge to be successful. Regardless if you can operate a SAWZALL or don’t know how to swing a hammer the rehab side of the business is open to everyone. Here are four things you need to do to be a successful rehabber without tool belt experience.

Know The Process. Instead of being an expert on the technical side of things you should start by knowing the process. You don’t need to know anything about home improvement to master the steps of a rehab. While every rehab has their own unique qualities there are similar several steps with every property. You should have an understanding on the big items to look for that are costly and difficult to deal with. Roofs, issues with the structure, windows and electrical items will have a much bigger impact than simple cosmetics. You don’t need to know how to remedy these problems but you should have an idea of the costs. One way to learn the costs is by simply walking around big box retail stores. This will give you some background on the cost of materials and with a few questions what they may be used for. Cost of labor you will learn the more job sites you are on and the more contractors and project managers you talk to. This knowledge will come in time but knowledge of the process is something you can learn before getting started.

Surround Yourself With A Strong Team. If you don’t know what you are doing on a rehab there is a real possibility you can and probably will lose money. Instead of waiting until you master every aspect of the process you can get started by surrounding yourself with a strong team. Start by finding the best contractor you can find. This may not be easy as many contractors only like to work with experienced investors. However, if you reach out to enough you will eventually find one that is a good fit for you and your experience. While you don’t want to blindly give your contractor the keys to a rehab project you should be willing to let them run things the way they see fit. You can certainly get different quotes but let your contractor run the project. In addition to your contractor you should also find a quality project manager, electrician, plumber, drywall expert and painter. Generally speaking, you should try to get at least three quotes on every aspect of the property. This is your rehab but you can make it easy on yourself by having the best possible team around you.

Consider A Partner. If the prospect of talking to people in the trades is difficult without knowing the jargon you can consider taking on a business partner. With a business partner you can handle the financial side of the transaction while your partner runs the rehab project. The upside is that you can feel comfortable knowing that your partner will not get run over by a contractor or handy person. The obvious downside is that you will not make as much on every deal as you expect. As you are just getting going this can be a great way to learn the business without the stress of trying to do everything on your own. You can hang around the property in your free time and see how things are done without everyone turning to you with questions or problems. Your partner will be the buffer and deal with any issues that pop up. A partner may limit your upside on every deal but it can be a great way to learn the ropes and break into the business.

Defer. In real estate it is always best to know what you don’t know. There are many investors who try to fake like they are an expert only to have it come back to haunt them. There is nothing wrong with saying that you don’t know a particular aspect of the business. With rehabbing if you don’t know what you are doing you will eventually get exposed. You are far better off deferring to the people around you as you develop your education. As we mentioned you should seek out a good team or a business partner until you are comfortable with the process. You will still reap the rewards of the deal, maybe not as much, but in the end it will be worth it for you. There is nothing wrong with deferring to the people around you for your first several rehabs.

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5 House Flipping Mistakes Newbies Must Avoid

Not every rehab and flip deal you get involved in will be successful. With poor planning and unrealistic numbers you can and sometimes will lose money.  As much as investors don’t want to hear this they need to recognize the possibility.  All it takes is a few small mistakes to turn a profitable looking property on paper to one you struggle breaking even on.  In a perfect world the mistakes you make will be small enough in nature that you can use them as a learning experience.  However the bigger the mistake the more costly it will be.  Instead of making mistakes on your own it is best to learn from the mistakes of others.  Here are five house flipping mistakes you need to avoid.

Planning As You Go. Once you make your plan you need to be committed to it. It is ok to make minor tweaks as you go but you have to avoid wholesale changes. The middle of the project is not the time to decide that you want to switch up the layout of the property. Not only does this add days to the process but money to your budget. Adding amenities does not always improve your bottom line. It can be easy getting influenced by what your contractor or someone else says you should do with the property. These are simply suggestions and should not be taken to heart. If something does not work out you are the one that will feel the repercussions. Adapting to an unexpected item is different than scrapping your original plan and starting from scratch. If you spent time planning for the property you need to trust your gut and stick with your plan.

Unrealistic Budget. Your budget can be anything you want it to be. It is not uncommon for novice rehabbers to fudge the budget to make the deal appear more attractive. By doing this all they are doing is creating a bigger problem down the road. There is nothing wrong with passing on a deal if the numbers don’t make sense. Getting into a deal is not the goal. The goal of any rehabber is to make a profit on the end sale. If you are over budget your bottom line won’t be as high as you anticipated and you will regret getting into the property. Your time could have been better spent on another property with much higher upside potential. On your budget you should always go with the worst case scenario. If things work in your favor you will be pleasantly surprised but at least you protect yourself from the downside. The budget and numbers should guide every decision you make with the rehab. Only use numbers you are confident in.

Overinflated ARV. Your budget and after repair value (ARV) typically go hand in hand. Getting a good deal and staying under budget only helps if you can sell the property the price you anticipate. A common mistake rehabbers make is thinking that the work they do will have a greater impact on the value than the market suggests. When estimating value you need to look at the property from potential buyers prospective. Giving the property a complete makeover will give your value a boost but maybe not as much as you think. Doing work just for work sake does not make sense in every market. If there are no substantial comparable sales or listings you could be throwing money away. Buyers do not care about the condition you bought the property in or all the great work you may have done. All they look at is the finished property and how it stacks up to other homes in the area. Having an overinflated value will cause the home to stay on the market longer than it needs to ultimately sell for much lower than you thought.

Holding Costs. There is more to your bottom line than simply the purchase and end sales price. On every rehab deal there is the time from acquisition to the end sale. The hidden fees during this time can greatly impact the profitability of the property. In addition to the interest repayment of the loan there are also payments for the insurance, property taxes, licenses and utilities. You are on the hook for these every day you own the property. Some of these will be more costly than others but over a few months these can easily equal thousands of dollars. It is important that you fully know and understand all of the potential expenses prior to making an offer.

Lost Work Days. As we mentioned time really is money in the rehab world. It is critical that you keep things moving throughout the process. Before you take ownership you and your contractor should sit down and make a work list and schedule. Reach out to everyone you plan to work on the project and confirm the dates you are requesting. Reiterate the importance of sticking to these dates and ask if they anticipate any conflicts. It is up to you and your contractor to keep things going so you hit the dates on your end. Waiting a week for materials may not seem like much but pushes everything back accordingly. One lost week can turn to two and before you know it you are 30 days past your projecting finish date.

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The Five Most Important Aspects Of Any House Flip

Real estate house flipping is as hot as ever. A majority of new real estate investors enter the business with rehabs and flips as their primary focus.  One of the main reasons for this is that anyone can do it.  You don’t need a degree or eight years of education to close your first deal.  Heck, you don’t necessarily even need your own funds.  As popular as rehabs are success is far from guaranteed.  There is still plenty that can go wrong on every deal.  Prior to taking on your first rehab deal there are a few core areas that every rehab investor must know.  These are the areas that will directly determine the strength of the deal and whether or not you will have success.  Here are the five most important aspects of any house flip.

Offer Price. The purchase price is the starting point of any real estate transaction. The lower you get the purchase price for the higher the potential upside. It is not a stretch to say that every dollar you go above your bottom line can have an impact on the transaction. Many new investors fail to recognize that the goal is not to simply get the offer accepted but to get it accepted at your price. At the end of the day you are looking to make a profit and not just complete a project. Once you go over the number you think is fair you will be forced to compensate in other areas. This could have an impact on the work quality which can affect the end sales price. As difficult as it may be you need to know when to walk away the minute the deal loses its luster. The purchase price starts the transaction and has a ripple down effect on everything else you do during the project.

Cost Of Repairs. The cost of repairs and the after repair value often go hand in hand. Let’s start with the cost of repairs. One of the ways to make money in house flipping is by adding value though improvements. That being said not all improvements will give you the right bang for your buck. You need to do the right work for the market. This doesn’t mean your rehab needs to look like all the others in the area but you need to consider your target buyers. You and your contractor need to walk the property and come up with a realistic set of improvements. In your work estimates you need to attach a price for the work, materials and labor associated. The total number you come up with will have an impact on the price you offer and hopefully the after repair value. Once your offer is accepted it is imperative that you and your team do everything in their power to stay under the number you budgeted.

After Repair Value (ARV). The key to any successful rehab is estimating what impact your improvements will have on the property value. There is always a small leap of faith associated with doing any improvements. Even if you know the comparable sales and listings inside and out there is nothing guaranteeing your property will sell for what you expect. All you can do is study the market and find comparables that buyers will look at and not the ones that improve the value in your favor. If you really wanted to you can probably find listings that are in line with the value you need to make the deal work. However if you need everything to break right or if there was only one similar transaction you could be in for a surprise when you are ready to sell. It is not enough to take a wild stab as to the ARV. You need to be confident that the work you do will produce the number you expect even before you make an offer.

Budget. The amount of money you allocate for repairs is not just an arbitrary number you can be flexible with. Your bottom line very much depends on your ability to stay under budget. Where many rehabbers go wrong is not staying on top of every expense associated with the project. Seemingly minor items such as carrying costs, insurance and some materials may not make much of a dent individually but when added up they have a big impact. If you took the time formulating a budget you are doing yourself a disservice if you don’t follow it. Going over budget causes you to compensate in other areas. Sometimes this can work out in your favor but in most cases it will cause a reduction in your expected profits.

List At Right Price. Every rehabber thinks that their property is the best one on the market. They have put hours of blood, sweat and tears into the property and think the market will feel their pain. The reality is that buyers don’t know, or care, what you went through to finish the property. All they look at is the finished product and how it stacks up with what else in currently available. If you have an inflated opinion of the property you will be tempted to list too high. Instead of squeezing every dollar out of the property this can actually have a negative impact. On the flip side listing at the right price will produce immediate interest that can help find multiple offers. The longer your home stays on the market unsold the more desperate you become and lower your price will be.

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5 Tips To Help Make Your New Year’s Goals A Reality

The change of calendar is a great time to assess where you are in your business. Right before the ball dropped you probably made a few resolutions that you swore you would stick with this year.  These are the changes to your lifestyle or your business that you have been meaning to start since the end of last summer.  New Year’s resolutions are great but for most people they only last a few weeks, tops.  The main reason for this is that goals without a plan and a vision are nothing more than wishes.  Wishes simply fade away after a few days.  Fortunately there are a few things you can do to will help keep you on track all year round.  Here are five tips to help turn your New Year’s goals a reality.

Visualize The Result. Stop for a second and think about how you would feel if your goals became reality. You would probably feel a sense of accomplishment and pride that would propel your business to new heights. It is this feeling that should drive you in everything you do. Anyone can write down what they want but few are willing to go the extra mile to achieve it. Achieving goals starts with making it seem real. Once you have the feeling of what accomplishing your goals would feel like you are more inclined to put the work in. Think about what steps you need to take or what people you need to help you. Think about any potential roadblocks and how you plan to get around them. Understand that achieving your goals will not happen overnight and will not be easy. Once you visualize the result actually doing it doesn’t seem as daunting.

Look At Your Habits. Human beings are creatures of habit. Once you do anything for a few days it becomes a habit. The longer you do something the more difficult that habit is to change. Fortunately this works both ways. Good habits are just as difficult to break as bad ones. As you begin the New Year you should take a look at your daily routine. Track everything you do from the minute you wake up till you go to bed at night for a week straight. At the end of the week do some honest evaluation of your habits. For many investors their bad habits are the directly getting in the way of what they want. Instead of doing things to achieve your goals you should first work on changing your habits. Waking up a little earlier or spending less time on electronics can directly influence how much work you accomplish over the course of the day. Whatever your bad habits are you need to work to break them before you can take the next step in business and in life.

Action Plan. How do you get your goals from vision to reality? Like anything else you do you need to make a plan. If you were making a cross country trip you probably wouldn’t just hop in the car and go. You would determine your route, plan some stops and calculate how long it may take to get to where you want to go. The same process should be applied with accomplishing your goals. You should make a clear plan of what you will do to make it happen. Write down what specific actions you will take every day and how long you will do them for. Your goals will not happen overnight. You need to make a specific time commitment before you scrap your plans and start from scratch. One of the things that are so great about goals is that they can be anything you desire and you can take any path you want to achieve them. With a good action plan in place anything is possible.

Daily Evaluation. Your goals should not be something your write down in January and then never check again. They should be something that you check every day. When you get a quiet moment at the end of the day you should take a look at everything you accomplished over the course of your day. What steps did you take to turn your goals into reality? Did you do anything that would cause you to take a few steps back? On the flipside did you make small progress that you could build on? By holding yourself accountable at the end of the day you are much more likely to take action. Instead of waiting weeks or even months before looking back at your goals you should give them at look every day.

Get Right Back On Track. The biggest reason that people don’t accomplish their goals is because they don’t know how to get back on track once they get off. They often feel that the minute they break their routine the process is over. The truth is that you probably will have missteps along the way, everybody does. The difference is that people who accomplish their goals know how to dust themselves off and not let it get in their way. They accept that there will be slip ups but they can quickly refocus. Don’t let one bad day spoil the six strong ones you may have had.

New Post has been published on http://www.cthomesllc.com/2017/01/5-important-factors-consider-start-flipping-houses/

5 Important Factors To Consider Before You Start Flipping Houses

Being a house flipper is very much like running a separate business. Even if you know what you are doing it often takes a full time commitment to be successful.  The perks of flipping houses are plentiful but you need to know exactly what you are getting into before you get very far.  Without knowledge of the business and a grasp of the process you will end up working harder and ending up with a smaller piece of the profits.  All it takes is one oversight in one area to cause a setback that can be difficult to overcome.  Before you dive into the real estate flipping business here are five important factors you need to consider.

Marketing Matters. Where do you plan on finding your next deal? As much as you may feel you are ready to get started you need deals to work on. Rehab and flip deals are not the same as other deals you may see in your market. To maximize your bottom line you need deals you can obtain at a deep discount. This could mean finding deals through short sales, foreclosure, divorce attorneys, probate or any other strategy you can think of. It doesn’t matter which marketing option you employ as long as you do something. Good rehab deals will not just fall on your lap. Whether you plan on working with local wholesalers or starting a mass direct marketing campaign you need to do something to generate deals. The amount and style of marketing you do is a good indicator on the type of deals you will work on.

Balance Your Portfolio. As you get started flipping houses you need to consider your goals. Every flipper wants to net as much as possible on every deal. The question is what are you going to do with your profits? Are you using them to supplement your full time income? Are you going to build your real estate business and look to purchase other properties? If you do purchase property are you looking for more flips or long term rentals? It doesn’t do you any good closing a deal if you are going to recklessly spend your profits. The best flippers have a balanced portfolio. For every three or four flips they do they reinvest a portion of the profits into a new rental property. Even if you aren’t comfortable with being a landlord and collecting rent you need to balance out your portfolio. You can easily hire a property manager to take care of the property. The cash flow you receive can offset any lulls you have in your rehabbing business. A balanced portfolio allows you to look at different markets and explore new opportunities when they arise. Going from flip to flip without a financial plan is a recipe for disaster.

Always Look For The Next Deal. Getting a new rehab deal is great! That is the goal for any rehab investor in the real estate business. However it is important not to put all of your eggs in one basket. The reality is that regardless of the struggles you have with the property before you know it you will be done with your current project. Without new deals to work on you will be right back at square one. With any marketing you do you need to keep one eye on the current deal and one eye on the next one. Take some time every week to reach out to new deals and build your pipeline. Here is where you need to have a reliable team in place you can lean on so you can run the business and find your next deal.

Team Building. To that point you cannot underestimate the importance of building your team. A good team around you can make or break your long and short term success. A good real estate agent can help you find and close more deals. A good attorney will help protect your best interests without wasting time going back and forth. A good contractor will help run your rehab keeping an eye on the budget and juggling several different personalities. A reliable property manager will run your rental property so you don’t have to worry about any potential tenant issues. By spending more time finding the right people each rehab will be as stress free and easy as it can be.

Time Commitment. Flipping houses requires a large time commitment. If you have a full time job it doesn’t mean you need to quit but you should be ready to take on a heavy workload. There are dozens of smaller steps that need to be accomplished before you can move onto the next one. Everything from securing financing to closing the deal to pulling permits can be a hectic and time consuming experience. Once you acquire the property you need to have everybody and everything in line if you want to finish your work in a short timeframe. When you are finished your property typically will not sell as quickly as you anticipate. There is usually a period of lag time between listing and the actual sale. From start to finish the project takes time and the amount of work can be quite consuming as well. You need to be willing to balance the project with whatever else you have going on in your life.

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5 Ways To Generate Additional Income While Investing In Real Estate

Generally speaking real estate investing success does not happen overnight. There are occasional exceptions to the rule but typically there is a process to the business.  One of the ways to keep your business going is by constantly funding it with capital.  Increased capital opens up the door to new ways of marketing and lead generation which will bring a continual flow of leads to your pipeline. Finding this capital can be a challenge but it doesn’t have to be.  Once you make the commitment to invest in real estate you can still be open to other revenue streams.  Until your business really takes off you should always be looking for ways to make money.  Here are five ways to generate income while investing in real estate.

Keep A Day Job. Investing in real estate doesn’t mean you have to make a full time commitment. There are thousands of investors who juggle their real estate business while still working full time. This can certainly be a challenge but with the increases in technology is much more realistic than in the past. Instead of having to physically talk on the phone and run to a fax machine you can do everything from your mobile device. There will be some tricky spots from time to time but you don’t need to quit your job before you have to. Not only does your full time job supply a bulk of your income but you also receive health care and other valuable benefits from your employer. Earning a steady paycheck also allows you to invest without having to watching every dime and worry where your next deal will come from. Investing full time and making it your business is great but only when you are ready to take the next step. Keep earning a paycheck from your employer as long as you possibly can.

Real Estate License. As a real estate investor you always want as many different revenue options as possible. While investing in real estate may be your long term goal obtaining your real estate license can help you get there. Real estate is very similar to investing in that you can do it on your own terms. If you find a broker who is on board with your plan you can use your license as often or as little as you like. With a license you can close just a few deals a year and generate extra cash flow. Think about all of the people you know that may have the need for a real estate agent. Outside of your network you can also make or save money on the deals you are directly involved in. Getting licensed isn’t free and certainly isn’t easy but if you look at the big picture not only is it a great way to learn the business but you can also generate extra revenue.

Wholesale Deals. You should always try to find ways to earn on every deal you are involved in. There are times when a particular deal may not be for you but it doesn’t mean you should walk away from it. If you come by an opportunity that may be perfect for a fellow investor you should consider trying to wholesale the deal. This is the process of finding a discounted deal and connecting the seller with and end investor. For your troubles the end investor offers you a flat fee. Once the contract is signed you collect your fee and simply move out of the way. You don’t have to worry about going through the closing process or what you are going to do with the rehab. Wholesale fees received won’t allow you to quit your day job but they can be a nice supplement until your next deal. The best part is that you can earn on a deal that you wouldn’t normally earn on.

Real Estate Blogging. There are several other ways to supplement your income while building your real estate business. If you have passion and knowledge of the business you should look to contribute to as many blogs as you can. There are many websites and individual investors who will pay for your blog posts. Not only is this a great way to learn about specific areas of the business but you may be able to expand your personal network. Earning part time revenue starts with accepting that most income received will not be a home run. With blogging you will hit many singles but for the time you put in it is worth it.

Bird Dogging. The more people you meet the better chance of finding someone you connect with. At one of your networking meetings you may bump into a fellow investor who tells you they are looking to expand into a particular market but are having trouble finding deals. Here is where you can offer to find deals for them. Bird dogging is the process of driving a market looking for vacant looking or distressed properties. With the address you attempt to find the owners information with the hopes of gauging their interest in selling. Any warm lead you get you can pass along to the investor you are working with. For your time and effort you may get a percentage of every deal that closes or a flat fee for the day. Either way you can make money doing something you may normally do anyway.

New Post has been published on http://www.cthomesllc.com/2016/12/hit-ground-running-2017/

How To Hit The Ground Running In 2017

The end of the year is a popular time to take inventory of your business. With the Christmas holiday there is usually plenty of opportunity to reflect on where your business has been over the past twelve months.  It can be a pretty eye opening exercise looking back at where you were just twelve months ago.  Some of the strategies you had then may be completely different than where you are now.  Regardless of where your business is or has been you need to turn the page and move forward to 2017.  By taking some honest inventory of your goals and what you need to achieve them you can hit the ground running as soon as the calendar changes.  Here are five ways to help plan and achieve your business goals for 2017.

Write Out Goals. What do you want for the next twelve months of your business? Anyone can say they want to make as much money as possible. You need to write out as many specific, achievable goals as you can think of. As simple as it sounds most investors do not know what they want out of the business. They like the prospect of unlimited income potential but they aren’t specific as to what that really means. If you want to close enough deals to quit your day job put a financial number on how much you will need to make. If you want to earn extra income for your child’s school or for a nice vacation put that down on paper. It has been shown that people who physically write out their goals have a much higher chance at actually achieving them. The first step is the most obvious but often not done enough. Start by writing down everything you want to achieve for next year.

Action Plan. How can you turn what you put on paper into reality? If the real estate investing business was easy anyone would do it. There will always be obstacles standing in your way. If you want to achieve your goals you need to identify what they are. Saying that you want to close more deals is great but how exactly are you going to do it. You may have to improve the amount of time spent networking or increase your lead generation. This may require you to attend monthly real estate investment clubs or stop into real estate offices a few times a week.   Take some time to research the specific steps for what you need to make your goals a reality. With the down time from now until the end of the year it is the perfect time to do your homework.

What Do You Need To Achieve It. If hard work ensured success there would be many people willing to make the sacrifice. The reality is that most people in business have the work ethic needed to succeed. Sometimes it takes more than that to achieve your goals. As you consider your goals think about what you need to do to achieve them. Is there any specific education that would help expedite the process? If so, where is the education offered and when are you going to find the time to do it. Do you need to find specific team members to help with your business? Identify who these people are and make a list of where you will find them. Do you have a full time job that is preventing your business from taking off? Is there any technology that would make balancing both jobs easier? Many people make excuses for not achieving their goals because they fail to acknowledge what they need to be successful. Sometimes just a little bit of help gives you the push you are looking for.

Map Out A Routine. We are all creatures of habit. We often find ourselves doing the same things at the same time almost every day. If your habits are productive this can work to your advantage. If they are poor eventually your productivity will come to a screeching halt. As you think about your goals you need to consider how they fit with your daily routine. Write out specifically when you plan on doing everything you want to get done. The more specific you are with your routine the easier it is to follow. You should put your day into blocks with every minute accounted for. Of course there will always be curveballs thrown at you from time to time but when they happen you should deal with them and quickly bounce back. Your goals will only happen if you can visualize how you will fit them into your everyday life.

Timeframe. Every New Year thousands of people commit to making resolutions. By the end of the month a large majority of those resolutions are over. With any goal you make you also need to commit to it for a certain amount of time. This means that regardless of your results and regardless of everything else you have going on you are going to stick to your action plan. Only after your 30, 60 or 90 day period you can evaluate what needs to be changed. While it doesn’t sound like too long but 90 days of change can be difficult. If you really want to achieve your goals you need to commit to them.

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How To Close Your First Deal In 60 Days

It seems like everyone in business is in a rush to do things as quickly as possible. If success doesn’t happen within the first few months your business may feel behind the eight ball.  The reality is that growing a business takes time.  It is quite rare that you will be flooded with deals upon entering the business.  However getting off on the right track can propel you to work harder and reach new heights.  As a new real estate investor one of your goals should be to get a deal under contract within your first 60 days in the business.  While this certainly won’t happen without hard work and perseverance it is possible.  Here are five steps to close your first deal in 60 days.

Analyze Market. Before you can go out and start making offers you need to have an idea of what you are making offers on. One of the most important lessons to learn in real estate is that not every property makes a good investment. You need to find the right property in the right market and hope you can get it at the right price. The best way to understand what you are buying is by taking the time to analyze the market. Start by simply driving in your car and looking at homes for sale. Spend a few weekends at open houses getting a feel of the style and price range for the area. You should know which areas inside of a market are on the rise and which you may want to avoid. The more you know about your investing market the easier it will be to act when new listings come your way. If you don’t know everything about your market you may end up with a bad deal.

Financing. How you plan on financing your purchases will impact how to search for properties. For starters very few, if any, real estate agents will show you any properties without either a proof of funds or prequalification letter in place. However you plan on financing is acceptable as long as you know and understand your financing options. If you plan on buying rehabs and quick flips hard money lending may be the best option for you. It gives you the ability to get your offer accepted without the burden of a mortgage contingency. Your loan is repaid after you sell the property and not in 30 years. If you are looking for a long term rental property traditional lender financing can be your best bet. With interest rates still near historically low levels you can lock into a low monthly payment for the life of the loan. Your financing options will vary based on the property and the specific situation. Before you can get too far you need to have all of your financing options in place.

Lead Generation. Deals will not just fall on your lap. Even if you have the best real estate agent in the area you still need to look for deals. There are a handful of different ways to get your phone to ring. Inexpensive items such as reaching out to sellers on Craigslist or sticking a few bandit signs in the ground can be quite effective. If you have access to capital you can try a full blow direct mail campaign or target a few social media sites. However you plan on generating leads there are typically numerous options in every market. The more properties you look at and the more sellers you talk to the more comfortable the process will become. What you will find is that real estate investing is a numbers game in that the more deals you are a part of the more likely one will come your way. There is nothing wrong with dipping your toe in the waters with several different marketing options.

Numbers. Looking for your first deal can be a very exciting time. However any fun you are having will quickly go away if your find yourself in a bad deals. The numbers should drive all of your investing decisions. You may personally love a property but if the numbers don’t work you need to wait for the next one. If you are interested in rehabs you need to know all of the expenses involved in the deal. This means any carrying costs, labor, repairs and everything else associated with the property. If you are looking for buy and hold property you should know average market rents as well as what monthly expenses you would be responsible for. Even the slightest change in numbers can completely change the perception of the deal.

Make Offers. The final step in getting a deal accepted is making offers. As obvious as it may be you need to make offers if you plan on purchasing properties. Many new investors are afraid to make below asking price offers because they are afraid of what the seller may say. It is not enough to get your offer accepted you need to get it at a price that works for you. If your offer is not accepted and there is no counter offer you should move on to the next property. You never want to get caught up in a bidding war or move forward with an offer that you are not comfortable with. You and your real estate agent should always have a plan and never be afraid to make the right offer for you.