A few years back, nearly anyone who had a pulse could get a loan for an investment property, watch it increase in value while it was being built and sell it for a profit. NEWS FLASH! Those days are long gone, but what is not long gone here in the Valley are people profiting from real estate. Property values are at an all time low right now. In fact, I recently found a property in my neighborhood listed for $120,000 as a bank foreclosure and it only needed about $5,000 worth of repairs. The recently sold comps were as high as $181,000!
So what are the keys to finding deals like this and turning a profit in this market?
1. Having a team. Your team should include real estate agents that represent the banks on their foreclosures. This is a sure way to learn about hot properties as they become available.
2. Having financing in place. Get pre-approved for a mortgage or line up your investor financing long before you need it. Otherwise you will over pay for your loan or miss deals as other qualified buyers sweep them up.
3. Have an exit strategy. The #1 reason people got caught holding lots of real estate when the market turned south was that they weren’t prepared to exit. You need to have the end purchaser before you buy the property. Don’t plan on having a wholesaler buy it, or running an ad to find a buyer – it will wear you out (trust me, I’ve done it the hard way).
If you want to learn the secrets to investing in real estate call me at 800-453-9290 (24 hour voice mail) for an invitation to my local real estate investment group where we show every day people how to make money in real estate and live a life that few can dare to dream of.
Wising you success!
Anthony
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