So it's very important to understand that when you invest in real estate you have to know what you don't know - so learning as much as you can quickly and efficiently is important. You have to really understand the way it works. The nice thing about real estate investing is you don't necessarily have to completely predict market trends like in other types of investing - because the stats are there for you to see. If houses in the neighborhood are selling within 10 days on market, at a certain price for a certain type of house. Chances are you can sell a house within 10 days at a certain price that is the same type of house in the same neighborhood. A real estate investor needs to understand their numbers though and make sure to account for all the costs and fees that are involved in real estate transactions on the buying and selling side. That amount is pretty straightforward if you know what you're doing. A seasoned real estate investor will be able to assess and 'appraise' a house by just quickly assessing the house condition, type, size, year built, neighborhood, features, and comparables. Then they can do a cost analysis to determine the proper price to purchase a house - to make profit. This is essential. You cannot make money buying a house a little bit under market value. That does nothing but leave a lot of mediocre houses in your hands that you can try to rent out to barely break even while all your money is tied up in loans or worse, just gone. Though this can be a tactic for some investors who have long term plans with a property or group of properties. For general cash buyer investors like Sell Your House OC which focuses on the Orange County, California area and single family residences, they seek deals well below market value and high equity or in the rare case where banks will agree to short sale at a hugely discounted cost.
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