Successful Real Estate Investing: What’s Behind Door Number One?
by Mike Cathell
The advice I always give is that it doesn’t matter, just pick a niche and “own it”.
I have talked with many people lured into flipping houses after all the “glam” on TV shows. You know, buy a house for $39,000, fix it for $20,000 and sell it in 7 days for $120,000 profit! (uh, right). What these people don’t realize is, this is a tough way to turn a profit if you don’t have the knowledge and/or the guts to hang in there. Flipping is not the right way for a lot of people.
With so many different types of Real Estate Investments on the market, a new investor should find the niche in which they want to “specialize”. Once they find that niche, don’t be jumping all over the investment market. Stay focused to become successful in one niche to start.
Some of the areas I will be exploring here include:
Rehab and Flip single family homes
Multi-family units for rental income
Manufactured home investing
Apartment and Office leasing
TIC luxury home ownership
Discounted Bank notes
Once they pick an area, find someone who has had success in that Real Estate Investment niche and talk to them. There is nothing successful people enjoy more than talking about their success. But that’s okay, they have earned bragging rights. Then make a plan. Make a serious, written plan, taking into consideration:
Your Budget to buy
Your budget for re-hab
What is your reserve for unexpected expenses?
What is your time frame?
Can you cover holding costs if you cannot complete in your desired time frame?
Can you complete the work yourself or will you need to hire professionals?
Are you going to flip it or hold it?
Is this a short term or long term investment?
Who is your buyer?
What is happening in your market?
Do you have what it takes to make it to the end?
I am not trying to scare people away from real estate investing as a source of income or as a retirement plan. I just believe, they should do their research first. Don’t go in to the world of Real Estate Investing being blinded by all the TV “glam”!
Mike Cathell, ePro Realtor is with Krise Commercial Group serving all of Lee County, Florida. Krise Commercial Group LLC offers big town knowledge and skills with small town customer service.
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