Getting Involved In Commercial Real Estate Investing

People choose residential and commercial real estate investing for many reasons. They may find that the property market is safer than the stock market, the potential for monetary returns is much higher than in other areas, or they enjoy buying old homes, remodeling them, and selling them for a much higher price than what they bought them for.

Whatever the reasons, investing in property requires people to know a little about the market, how to buy and sell homes quickly, and when to walk away from a potential deal. People who want to invest in should also understand tax laws and land laws in their area before they spend money in the housing market.

Taking a few business or real estate classes is a good idea for those who are just starting out. These classes are offered through colleges, private schools, or agencies. Lectures about selling will provide valuable information about what to look for when buying a home, where to spend money on improvements, and where to advertise when selling a home. Real estate investing will take up a lot of time, but the pay off could be great. Some people will sell a few homes and then retire on the money they have made. By making good business decisions, this can be the reality for many people.

Your not limited to just residential properties either. Commercial real estate investing includes properties such as retail space, office buildings, warehouses, and storage facilities are also have great potential for making money. Investing in this type of thing will generate a monthly income as long as the space can be rented out for most of the year. Those who are careful about who they rent their building to could have a steady income for a few years. Most leases on commercial properties are at least three years or more. Selling these properties can also benefit a person if they can buy another one after making the sale.

When looking at a piece of property, there is more to look at than its potential for making money. People need to investigate the plumbing, electrical, and roof structure before making a purchase. These can be very expensive to replace and may require too much time. While a home or commercial property may be large enough, the property itself may be too small.

It is important to research what these properties are worth and how much they may be worth over time when getting into residential and commercial real estate investing. This will be one of the deciding factors when purchasing property. Since the market is continually changing, property values will constantly shift from high to low. It is important to be aware of these shifts and only buy property when it will be profitable.

About the Author

Craig Thornburrow is an acknowledged expert in his field. You can get more free advice on creative real estate investing and real estate investing at http://www.realestateinvestingguru.com

Real Estate Investing Tips - 5 Things You Need to Know

Real Estate Investing is simple, but not necessarily easy! You see, people can complicate anything! It’s like telling someone how to drive a car. It’s not complicated at all. Just open the door. Sit down. Turn the car on and put it into drive. But, people always make things harder than they need to be; They start asking thinks like ‘which door should I open - the left or the right?’ or ‘Do I unlock it with a key or click the button’ and on and on we go. Twenty minutes later, we’ve still not even been able to get into the car.

I liked that analogy because it applies to real estate. There are really 5 things you need to know - or steps - when it comes to real estate.

Here are the 5 Real Estate Investing Tips you need to know!

Tip #1: Find a Motivated Seller
Stop wasting your time trying to make deals out of deals that aren’t there. Sellers are motivated to sell a piece of real estate by only 3 things:

1. Change in personal situation. Sellers become very motivated to sell their properties when things in their personal lives change and they can no longer afford the home or there is an emotional reason for selling. Personal reasons for selling a home are: job loss, divorce, relocation, illness, etc.
2. Economic conditions.
3. Property conditions

Tip #2: Evaluate the Deal
Once you’ve found a motivated seller, it’s time to decide if the deal is going to work. Real estate investing comes down to the numbers. There are 5 factors to consider in order to decide whether or not to invest in a property.

1. Location. If real estate is located in an area that is full of abandoned properties and rundown houses, the score will be lower than if the house was located in a prime location, close to all of the area amenities.
2. Condition. The better the condition of the property, the higher the score will be. For instance, a brand new home is going to have a substantially higher score than a property that’s rundown and needs major repairs.
3. Price. The lower the price, the better! The goal is to purchase real estate for as little as possible. 30% or more below market value will score much higher than when the seller is asking for market value or better.

4. Financing. Real estate comes down to the numbers. If the seller is willing to give you financing with flexible terms and low interest rates and you don’t have to come out with any of your own money, it’s better than when the seller needs all cash up front.
5. Seller’s Motivation. On a scale of 1 to 10, how motivated is the seller to sell his/her property? The more urgent their situation is, the higher the motivation score.

Tip #3: Write an Offer
After you’ve done your homework and looked at the numbers, it’s time to put the pen to the paper. But before you write your offer, make sure you have 2 exit strategies in place. This way, you’re not stuck holding onto a piece of real estate that you can’t rent or sell. Many people are losing their shirts in real estate because they jumped in on pre-construction and hoped to “get rich quick”. Consider submitting 3 contracts on the same property with different prices and terms and let the seller decide what works best for his/her situation. For instance, you may have a wholesale offer at 50% of market value, a seller financed alternative that you might use for a rental, and a lease option which you might do a sandwich lease-option.

Tip #4: Line Up Your Financing
Once the seller has agreed to one of your offers, it’s time to get the deal closed. If you’re wholesaling the property, find your investor-buyer. If you’re going to close on it yourself, line up the financing via a conventional lender, hard money lender or line of credit. Also start looking for a tenant or tenant-buyer if you’re goal is to build a long term real estate portfolio. The key is to get your financing lined up in accordance to your exit strategy and begin moving immediately.

Tip #5: Follow Through with Your Plan
Many real estate investors purchase a piece of property with one plan, buy-fix-sell. They write the offer based on a certain sale price and with a specific plan to renovate. Then, once they close on the home, they over-improve and try to sell it for more than it’s worth or use a hard money lender and then decide they want to rent it.

If you follow these steps and remember the tips, then you will make money in real estate. If you deviate from the plan, then your chances of running into problems increase. You wind up with the wrong type of financing, you can’t find tenants, the holding costs eat the profits, etc.

Remember, real estate investing is like driving a car. It’s simple. Get in, turn the key, put it in drive, and go!

Getting Involved In Commercial Real Estate Investing

People choose residential and commercial real estate investing for many reasons. They may find that the property market is safer than the stock market, the potential for monetary returns is much higher than in other areas, or they enjoy buying old homes, remodeling them, and selling them for a much higher price than what they bought them for.

Whatever the reasons, investing in property requires people to know a little about the market, how to buy and sell homes quickly, and when to walk away from a potential deal. People who want to invest in should also understand tax laws and land laws in their area before they spend money in the housing market.

Taking a few business or real estate classes is a good idea for those who are just starting out. These classes are offered through colleges, private schools, or agencies. Lectures about selling will provide valuable information about what to look for when buying a home, where to spend money on improvements, and where to advertise when selling a home. Real estate investing will take up a lot of time, but the pay off could be great. Some people will sell a few homes and then retire on the money they have made. By making good business decisions, this can be the reality for many people.

Your not limited to just residential properties either. Commercial real estate investing includes properties such as retail space, office buildings, warehouses, and storage facilities are also have great potential for making money. Investing in this type of thing will generate a monthly income as long as the space can be rented out for most of the year. Those who are careful about who they rent their building to could have a steady income for a few years. Most leases on commercial properties are at least three years or more. Selling these properties can also benefit a person if they can buy another one after making the sale.

When looking at a piece of property, there is more to look at than its potential for making money. People need to investigate the plumbing, electrical, and roof structure before making a purchase. These can be very expensive to replace and may require too much time. While a home or commercial property may be large enough, the property itself may be too small.

It is important to research what these properties are worth and how much they may be worth over time when getting into residential and commercial real estate investing. This will be one of the deciding factors when purchasing property. Since the market is continually changing, property values will constantly shift from high to low. It is important to be aware of these shifts and only buy property when it will be profitable.

About the Author

Craig Thornburrow is an acknowledged expert in his field. You can get more free advice on creative real estate investing and real estate investing at http://www.realestateinvestingguru.com

Getting Involved In Commercial Real Estate Investing

People choose residential and commercial real estate investing for many reasons. They may find that the property market is safer than the stock market, the potential for monetary returns is much higher than in other areas, or they enjoy buying old homes, remodeling them, and selling them for a much higher price than what they bought them for.

Whatever the reasons, investing in property requires people to know a little about the market, how to buy and sell homes quickly, and when to walk away from a potential deal. People who want to invest in should also understand tax laws and land laws in their area before they spend money in the housing market.

Taking a few business or real estate classes is a good idea for those who are just starting out. These classes are offered through colleges, private schools, or agencies. Lectures about selling will provide valuable information about what to look for when buying a home, where to spend money on improvements, and where to advertise when selling a home. Real estate investing will take up a lot of time, but the pay off could be great. Some people will sell a few homes and then retire on the money they have made. By making good business decisions, this can be the reality for many people.

Your not limited to just residential properties either. Commercial real estate investing includes properties such as retail space, office buildings, warehouses, and storage facilities are also have great potential for making money. Investing in this type of thing will generate a monthly income as long as the space can be rented out for most of the year. Those who are careful about who they rent their building to could have a steady income for a few years. Most leases on commercial properties are at least three years or more. Selling these properties can also benefit a person if they can buy another one after making the sale.

When looking at a piece of property, there is more to look at than its potential for making money. People need to investigate the plumbing, electrical, and roof structure before making a purchase. These can be very expensive to replace and may require too much time. While a home or commercial property may be large enough, the property itself may be too small.

It is important to research what these properties are worth and how much they may be worth over time when getting into residential and commercial real estate investing. This will be one of the deciding factors when purchasing property. Since the market is continually changing, property values will constantly shift from high to low. It is important to be aware of these shifts and only buy property when it will be profitable.

About the Author

Craig Thornburrow is an acknowledged expert in his field. You can get more free advice on creative real estate investing and real estate investing at http://www.realestateinvestingguru.com

Real Estate Investing Tips - 5 Things You Need to Know

Real Estate Investing is simple, but not necessarily easy! You see, people can complicate anything! It’s like telling someone how to drive a car. It’s not complicated at all. Just open the door. Sit down. Turn the car on and put it into drive. But, people always make things harder than they need to be; They start asking thinks like ‘which door should I open - the left or the right?’ or ‘Do I unlock it with a key or click the button’ and on and on we go. Twenty minutes later, we’ve still not even been able to get into the car.

I liked that analogy because it applies to real estate. There are really 5 things you need to know - or steps - when it comes to real estate.

Here are the 5 Real Estate Investing Tips you need to know!

Tip #1: Find a Motivated Seller
Stop wasting your time trying to make deals out of deals that aren’t there. Sellers are motivated to sell a piece of real estate by only 3 things:

1. Change in personal situation. Sellers become very motivated to sell their properties when things in their personal lives change and they can no longer afford the home or there is an emotional reason for selling. Personal reasons for selling a home are: job loss, divorce, relocation, illness, etc.
2. Economic conditions.
3. Property conditions

Tip #2: Evaluate the Deal
Once you’ve found a motivated seller, it’s time to decide if the deal is going to work. Real estate investing comes down to the numbers. There are 5 factors to consider in order to decide whether or not to invest in a property.

1. Location. If real estate is located in an area that is full of abandoned properties and rundown houses, the score will be lower than if the house was located in a prime location, close to all of the area amenities.
2. Condition. The better the condition of the property, the higher the score will be. For instance, a brand new home is going to have a substantially higher score than a property that’s rundown and needs major repairs.
3. Price. The lower the price, the better! The goal is to purchase real estate for as little as possible. 30% or more below market value will score much higher than when the seller is asking for market value or better.

4. Financing. Real estate comes down to the numbers. If the seller is willing to give you financing with flexible terms and low interest rates and you don’t have to come out with any of your own money, it’s better than when the seller needs all cash up front.
5. Seller’s Motivation. On a scale of 1 to 10, how motivated is the seller to sell his/her property? The more urgent their situation is, the higher the motivation score.

Tip #3: Write an Offer
After you’ve done your homework and looked at the numbers, it’s time to put the pen to the paper. But before you write your offer, make sure you have 2 exit strategies in place. This way, you’re not stuck holding onto a piece of real estate that you can’t rent or sell. Many people are losing their shirts in real estate because they jumped in on pre-construction and hoped to “get rich quick”. Consider submitting 3 contracts on the same property with different prices and terms and let the seller decide what works best for his/her situation. For instance, you may have a wholesale offer at 50% of market value, a seller financed alternative that you might use for a rental, and a lease option which you might do a sandwich lease-option.

Tip #4: Line Up Your Financing
Once the seller has agreed to one of your offers, it’s time to get the deal closed. If you’re wholesaling the property, find your investor-buyer. If you’re going to close on it yourself, line up the financing via a conventional lender, hard money lender or line of credit. Also start looking for a tenant or tenant-buyer if you’re goal is to build a long term real estate portfolio. The key is to get your financing lined up in accordance to your exit strategy and begin moving immediately.

Tip #5: Follow Through with Your Plan
Many real estate investors purchase a piece of property with one plan, buy-fix-sell. They write the offer based on a certain sale price and with a specific plan to renovate. Then, once they close on the home, they over-improve and try to sell it for more than it’s worth or use a hard money lender and then decide they want to rent it.

If you follow these steps and remember the tips, then you will make money in real estate. If you deviate from the plan, then your chances of running into problems increase. You wind up with the wrong type of financing, you can’t find tenants, the holding costs eat the profits, etc.

Remember, real estate investing is like driving a car. It’s simple. Get in, turn the key, put it in drive, and go!

Getting Involved In Commercial Real Estate Investing

People choose residential and commercial real estate investing for many reasons. They may find that the property market is safer than the stock market, the potential for monetary returns is much higher than in other areas, or they enjoy buying old homes, remodeling them, and selling them for a much higher price than what they bought them for.

Whatever the reasons, investing in property requires people to know a little about the market, how to buy and sell homes quickly, and when to walk away from a potential deal. People who want to invest in should also understand tax laws and land laws in their area before they spend money in the housing market.

Taking a few business or real estate classes is a good idea for those who are just starting out. These classes are offered through colleges, private schools, or agencies. Lectures about selling will provide valuable information about what to look for when buying a home, where to spend money on improvements, and where to advertise when selling a home. Real estate investing will take up a lot of time, but the pay off could be great. Some people will sell a few homes and then retire on the money they have made. By making good business decisions, this can be the reality for many people.

Your not limited to just residential properties either. Commercial real estate investing includes properties such as retail space, office buildings, warehouses, and storage facilities are also have great potential for making money. Investing in this type of thing will generate a monthly income as long as the space can be rented out for most of the year. Those who are careful about who they rent their building to could have a steady income for a few years. Most leases on commercial properties are at least three years or more. Selling these properties can also benefit a person if they can buy another one after making the sale.

When looking at a piece of property, there is more to look at than its potential for making money. People need to investigate the plumbing, electrical, and roof structure before making a purchase. These can be very expensive to replace and may require too much time. While a home or commercial property may be large enough, the property itself may be too small.

It is important to research what these properties are worth and how much they may be worth over time when getting into residential and commercial real estate investing. This will be one of the deciding factors when purchasing property. Since the market is continually changing, property values will constantly shift from high to low. It is important to be aware of these shifts and only buy property when it will be profitable.

About the Author

Craig Thornburrow is an acknowledged expert in his field. You can get more free advice on creative real estate investing and real estate investing at http://www.realestateinvestingguru.com

Getting Involved In Commercial Real Estate Investing

People choose residential and commercial real estate investing for many reasons. They may find that the property market is safer than the stock market, the potential for monetary returns is much higher than in other areas, or they enjoy buying old homes, remodeling them, and selling them for a much higher price than what they bought them for.

Whatever the reasons, investing in property requires people to know a little about the market, how to buy and sell homes quickly, and when to walk away from a potential deal. People who want to invest in should also understand tax laws and land laws in their area before they spend money in the housing market.

Taking a few business or real estate classes is a good idea for those who are just starting out. These classes are offered through colleges, private schools, or agencies. Lectures about selling will provide valuable information about what to look for when buying a home, where to spend money on improvements, and where to advertise when selling a home. Real estate investing will take up a lot of time, but the pay off could be great. Some people will sell a few homes and then retire on the money they have made. By making good business decisions, this can be the reality for many people.

Your not limited to just residential properties either. Commercial real estate investing includes properties such as retail space, office buildings, warehouses, and storage facilities are also have great potential for making money. Investing in this type of thing will generate a monthly income as long as the space can be rented out for most of the year. Those who are careful about who they rent their building to could have a steady income for a few years. Most leases on commercial properties are at least three years or more. Selling these properties can also benefit a person if they can buy another one after making the sale.

When looking at a piece of property, there is more to look at than its potential for making money. People need to investigate the plumbing, electrical, and roof structure before making a purchase. These can be very expensive to replace and may require too much time. While a home or commercial property may be large enough, the property itself may be too small.

It is important to research what these properties are worth and how much they may be worth over time when getting into residential and commercial real estate investing. This will be one of the deciding factors when purchasing property. Since the market is continually changing, property values will constantly shift from high to low. It is important to be aware of these shifts and only buy property when it will be profitable.

About the Author

Craig Thornburrow is an acknowledged expert in his field. You can get more free advice on creative real estate investing and real estate investing at http://www.realestateinvestingguru.com

Real Estate Investing Tips - 5 Things You Need to Know

Real Estate Investing is simple, but not necessarily easy! You see, people can complicate anything! It’s like telling someone how to drive a car. It’s not complicated at all. Just open the door. Sit down. Turn the car on and put it into drive. But, people always make things harder than they need to be; They start asking thinks like ‘which door should I open - the left or the right?’ or ‘Do I unlock it with a key or click the button’ and on and on we go. Twenty minutes later, we’ve still not even been able to get into the car.

I liked that analogy because it applies to real estate. There are really 5 things you need to know - or steps - when it comes to real estate.

Here are the 5 Real Estate Investing Tips you need to know!

Tip #1: Find a Motivated Seller
Stop wasting your time trying to make deals out of deals that aren’t there. Sellers are motivated to sell a piece of real estate by only 3 things:

1. Change in personal situation. Sellers become very motivated to sell their properties when things in their personal lives change and they can no longer afford the home or there is an emotional reason for selling. Personal reasons for selling a home are: job loss, divorce, relocation, illness, etc.
2. Economic conditions.
3. Property conditions

Tip #2: Evaluate the Deal
Once you’ve found a motivated seller, it’s time to decide if the deal is going to work. Real estate investing comes down to the numbers. There are 5 factors to consider in order to decide whether or not to invest in a property.

1. Location. If real estate is located in an area that is full of abandoned properties and rundown houses, the score will be lower than if the house was located in a prime location, close to all of the area amenities.
2. Condition. The better the condition of the property, the higher the score will be. For instance, a brand new home is going to have a substantially higher score than a property that’s rundown and needs major repairs.
3. Price. The lower the price, the better! The goal is to purchase real estate for as little as possible. 30% or more below market value will score much higher than when the seller is asking for market value or better.

4. Financing. Real estate comes down to the numbers. If the seller is willing to give you financing with flexible terms and low interest rates and you don’t have to come out with any of your own money, it’s better than when the seller needs all cash up front.
5. Seller’s Motivation. On a scale of 1 to 10, how motivated is the seller to sell his/her property? The more urgent their situation is, the higher the motivation score.

Tip #3: Write an Offer
After you’ve done your homework and looked at the numbers, it’s time to put the pen to the paper. But before you write your offer, make sure you have 2 exit strategies in place. This way, you’re not stuck holding onto a piece of real estate that you can’t rent or sell. Many people are losing their shirts in real estate because they jumped in on pre-construction and hoped to “get rich quick”. Consider submitting 3 contracts on the same property with different prices and terms and let the seller decide what works best for his/her situation. For instance, you may have a wholesale offer at 50% of market value, a seller financed alternative that you might use for a rental, and a lease option which you might do a sandwich lease-option.

Tip #4: Line Up Your Financing
Once the seller has agreed to one of your offers, it’s time to get the deal closed. If you’re wholesaling the property, find your investor-buyer. If you’re going to close on it yourself, line up the financing via a conventional lender, hard money lender or line of credit. Also start looking for a tenant or tenant-buyer if you’re goal is to build a long term real estate portfolio. The key is to get your financing lined up in accordance to your exit strategy and begin moving immediately.

Tip #5: Follow Through with Your Plan
Many real estate investors purchase a piece of property with one plan, buy-fix-sell. They write the offer based on a certain sale price and with a specific plan to renovate. Then, once they close on the home, they over-improve and try to sell it for more than it’s worth or use a hard money lender and then decide they want to rent it.

If you follow these steps and remember the tips, then you will make money in real estate. If you deviate from the plan, then your chances of running into problems increase. You wind up with the wrong type of financing, you can’t find tenants, the holding costs eat the profits, etc.

Remember, real estate investing is like driving a car. It’s simple. Get in, turn the key, put it in drive, and go!

Getting Involved In Commercial Real Estate Investing

People choose residential and commercial real estate investing for many reasons. They may find that the property market is safer than the stock market, the potential for monetary returns is much higher than in other areas, or they enjoy buying old homes, remodeling them, and selling them for a much higher price than what they bought them for.

Whatever the reasons, investing in property requires people to know a little about the market, how to buy and sell homes quickly, and when to walk away from a potential deal. People who want to invest in should also understand tax laws and land laws in their area before they spend money in the housing market.

Taking a few business or real estate classes is a good idea for those who are just starting out. These classes are offered through colleges, private schools, or agencies. Lectures about selling will provide valuable information about what to look for when buying a home, where to spend money on improvements, and where to advertise when selling a home. Real estate investing will take up a lot of time, but the pay off could be great. Some people will sell a few homes and then retire on the money they have made. By making good business decisions, this can be the reality for many people.

Your not limited to just residential properties either. Commercial real estate investing includes properties such as retail space, office buildings, warehouses, and storage facilities are also have great potential for making money. Investing in this type of thing will generate a monthly income as long as the space can be rented out for most of the year. Those who are careful about who they rent their building to could have a steady income for a few years. Most leases on commercial properties are at least three years or more. Selling these properties can also benefit a person if they can buy another one after making the sale.

When looking at a piece of property, there is more to look at than its potential for making money. People need to investigate the plumbing, electrical, and roof structure before making a purchase. These can be very expensive to replace and may require too much time. While a home or commercial property may be large enough, the property itself may be too small.

It is important to research what these properties are worth and how much they may be worth over time when getting into residential and commercial real estate investing. This will be one of the deciding factors when purchasing property. Since the market is continually changing, property values will constantly shift from high to low. It is important to be aware of these shifts and only buy property when it will be profitable.

About the Author

Craig Thornburrow is an acknowledged expert in his field. You can get more free advice on creative real estate investing and real estate investing at http://www.realestateinvestingguru.com

Real Estate Investing Tips - 5 Things You Need to Know

Real Estate Investing is simple, but not necessarily easy! You see, people can complicate anything! It’s like telling someone how to drive a car. It’s not complicated at all. Just open the door. Sit down. Turn the car on and put it into drive. But, people always make things harder than they need to be; They start asking thinks like ‘which door should I open - the left or the right?’ or ‘Do I unlock it with a key or click the button’ and on and on we go. Twenty minutes later, we’ve still not even been able to get into the car.

I liked that analogy because it applies to real estate. There are really 5 things you need to know - or steps - when it comes to real estate.

Here are the 5 Real Estate Investing Tips you need to know!

Tip #1: Find a Motivated Seller
Stop wasting your time trying to make deals out of deals that aren’t there. Sellers are motivated to sell a piece of real estate by only 3 things:

1. Change in personal situation. Sellers become very motivated to sell their properties when things in their personal lives change and they can no longer afford the home or there is an emotional reason for selling. Personal reasons for selling a home are: job loss, divorce, relocation, illness, etc.
2. Economic conditions.
3. Property conditions

Tip #2: Evaluate the Deal
Once you’ve found a motivated seller, it’s time to decide if the deal is going to work. Real estate investing comes down to the numbers. There are 5 factors to consider in order to decide whether or not to invest in a property.

1. Location. If real estate is located in an area that is full of abandoned properties and rundown houses, the score will be lower than if the house was located in a prime location, close to all of the area amenities.
2. Condition. The better the condition of the property, the higher the score will be. For instance, a brand new home is going to have a substantially higher score than a property that’s rundown and needs major repairs.
3. Price. The lower the price, the better! The goal is to purchase real estate for as little as possible. 30% or more below market value will score much higher than when the seller is asking for market value or better.

4. Financing. Real estate comes down to the numbers. If the seller is willing to give you financing with flexible terms and low interest rates and you don’t have to come out with any of your own money, it’s better than when the seller needs all cash up front.
5. Seller’s Motivation. On a scale of 1 to 10, how motivated is the seller to sell his/her property? The more urgent their situation is, the higher the motivation score.

Tip #3: Write an Offer
After you’ve done your homework and looked at the numbers, it’s time to put the pen to the paper. But before you write your offer, make sure you have 2 exit strategies in place. This way, you’re not stuck holding onto a piece of real estate that you can’t rent or sell. Many people are losing their shirts in real estate because they jumped in on pre-construction and hoped to “get rich quick”. Consider submitting 3 contracts on the same property with different prices and terms and let the seller decide what works best for his/her situation. For instance, you may have a wholesale offer at 50% of market value, a seller financed alternative that you might use for a rental, and a lease option which you might do a sandwich lease-option.

Tip #4: Line Up Your Financing
Once the seller has agreed to one of your offers, it’s time to get the deal closed. If you’re wholesaling the property, find your investor-buyer. If you’re going to close on it yourself, line up the financing via a conventional lender, hard money lender or line of credit. Also start looking for a tenant or tenant-buyer if you’re goal is to build a long term real estate portfolio. The key is to get your financing lined up in accordance to your exit strategy and begin moving immediately.

Tip #5: Follow Through with Your Plan
Many real estate investors purchase a piece of property with one plan, buy-fix-sell. They write the offer based on a certain sale price and with a specific plan to renovate. Then, once they close on the home, they over-improve and try to sell it for more than it’s worth or use a hard money lender and then decide they want to rent it.

If you follow these steps and remember the tips, then you will make money in real estate. If you deviate from the plan, then your chances of running into problems increase. You wind up with the wrong type of financing, you can’t find tenants, the holding costs eat the profits, etc.

Remember, real estate investing is like driving a car. It’s simple. Get in, turn the key, put it in drive, and go!