Are you a real estate investor who’s getting involved in buying notes or short sale properties? If so, there are a number of strategies that you should employ so as to ensure you follow a few basic investing dos and don’ts. This will ensure your success and maximize profits!
Consider the following tips from Kristine Zelazo, The Short Sale Gal and investment specialist.
Know Your Numbers
If you’re new to real estate investing, you may be surprised by how many numbers and figures are involved! There’s property price, market value of the property, the price of improvements and upgrades, net income, return on investment (ROI), cash flow, cap rate, cash on-cash return and total ROI.
These are the most important figures that you should determine before you make a final decision on whether to invest in a specific property.
View Plenty of Properties
Many new investors jump at the first viable investment property that they encounter, but this can result in a situation where you miss out on a better opportunity.
Yes, time is essential when it comes to real estate investment, but you can view multiple properties in a day, enabling you to get a good feel for your options, while still moving quickly if the need arises.
Don’t Look for Perfection
Newer real estate investors often hold out for that “perfect” or ideal property. But it’s important to remember that perfect investment opportunities are rare; so by holding out and hoping for perfection, you’re missing out on the great (albeit imperfect) investment opportunities that are available to you.
In short, be realistic.
Don’t Underestimate Cost of Upgrade and Repairs
Underestimating the cost of repairs and upgrades can be extremely costly.
So if necessary, over-estimate. Also, seek out assistance from an experienced contractor and/or inspector who can detect some of those less-than-obvious problem areas. It’s equally problematic to encounter problems that you didn’t know existed.
The net effect can be the same – spending more money than expected, thereby cutting into (or even canceling out) your profits and ROI.
Don’t Focus on Personal Preferences
Remember, you’re not searching for a home for yourself or your family. This is an investment property; one that you’re going to fix and flip or maintain as a rental holding.
So put those personal preferences aside and look at the home objectively. Focus on whether the property will enable you to achieve your investment goals.
If you’re ready to get involved as an investor, Kristine Zelazo is here to help! In addition to investing herself, Kristine frequently partners with fellow investors, working to guide industry newcomers to success. To get started, take a few minutes to complete the New Investor Form.
If you’re seeking to sell your home as-is to an investor or in a short sale transaction, turn to Kristine Zelazo, the Short Sale Gal! Complete the home pre-sale form to provide Kristine with additional information on the property in question.
Contact Kristine Zelazo by phone at 800.664.0616, x802.