Getting started in real estate investing can be a challenge, especially if you don’t have a background in finance/investing or real estate. But there are a number of tips and tricks that you can use to maximize your profits in the long term. So consider these real estate investing tips from The Short Sale Gal Kristine Zelazo to help increase your investment profits.
Real Estate Investing Tips: Don’t Waste Money on Gurus
It’s critical that you learn the ins and outs of investing, but don’t spend a fortune on “systems” and seminars and gurus. Perform research. Work with an investing mentor (like The Short Sale Gal, Kristine Zelazo!). Buy a few ebooks. But don’t go nuts.
It’s easy to get caught up in the research — so much so that you never take action learning becomes your endgame. So use caution to avoid a situation where buying and collecting information evolves into your endgame.
To avoid this, take some time to write down your questions and other information that you’re seeking as you go in search of information.
Real Estate Investing Tips: Look at Lots of Properties
It’s tempting to snap up the first property you look at, but it’s generally best to view lots of properties so you can get a good feel for what’s available.
You must also view the property from the perspective of an investor, not a home buyer. There is a difference. A buyer focuses on move-in-ability and aesthetics, whereas an investor focuses on the potential for profit and what sells. You shouldn’t be buying properties that you personally like; you should be acquiring properties that will turn a healthy profit.
But use caution to avoid falling into the trap of analysis paralysis and avoid a unicorn hunt. Many newer investors get “a-better-deal-may-be-just-around-the-corner” syndrome, which can backfire in a big way as you could miss out on a big deal while you’re holding out for something better.
Instead, view lots of properties so you have a wide variety of options, then narrow the pool based upon your goals.
Real Estate Investing Tips: Perform a Complete Financial Analysis
When you have a short list of properties, perform a full financial analysis to determine which one makes the most sense financially. Avoid emotional decisions. For instance, never buy property at a higher price just because you happen to like the property.
Also use caution when dealing with sellers who over-value the property through pro-forma (estimated) data. While you can certainly use a pro-forma data as a starting point, perform your own research and determine the actual figures before you move to closing.
The most crucial figures for your analysis are:
- Net income – income vs. expenses;
- Cash flow – net income vs debt financing payments;
- Return on investment – cash flow vs investment;
- Cap rate – net income/property price;
- Cash-on-cash return – cash flow vs investment; and
- Total ROI – total return vs investment.
You can gain lots of insight from previous years’ tax returns, property tax bills and maintenance records to get an accurate idea of the real income and expenses.
NEED HELP BUYING A SHORT SALE PROPERTY?
There are a number of unique steps and processes involved when buying an investment property, but when done right, you can stand to make significant profits. You’ll have lots of advantages in this regard when you work with a real estate investing and short sale expert like Kristine Zelazo, better known as The Short Sale Gal.
Based in Florida, Kristine works with both buyers and sellers and she is an experienced negotiator. So if you’re an investor seeking to get started in buying short sales and need a great mentor or wish to pursue a short sale transaction for the sale of your property, turn to Kristine Zelazo, the Short Sale Gal!
To get started with selling your home, simply complete the home pre-sale form to provide Kristine with additional information on the property in question. Then, call 786.570.0360.