| If you have ever thought about investing in real | | | | 2) Use none or as little of your own money as |
| estate, now is the time. You may be thinking that | | | | possible when you purchase an investment |
| since the real estate market is in the tank at the | | | | property, if at all possible. If you are using your |
| moment and that it can't possibly be a good time | | | | own money, you will be limiting your own cash |
| to get into this market. But you couldn't be more | | | | flow. You can borrow money from a conventional |
| wrong! There are more foreclosures than ever | | | | lender and put as little down as possible, or you |
| right now and that presents a ton of opportunity | | | | can also get a hard money loan for the cost of |
| for us investors who have been waiting for prices | | | | the property and the rehab costs. |
| like what we are now seeing. I know the media is | | | | 3) Don't do your own renovations. You have |
| out there saying the sky is falling. However, there | | | | probably seen them on TV shows, those house |
| are many successful investors quietly sitting back | | | | flipping pros doing their own rehab work. |
| and laughing as they make money hand over fist. | | | | However, you won't be able to do more than one |
| Let me let you in on a little secret that all | | | | flip at a time if you're doing your own work. You |
| successful investors know...The time to buy is | | | | need a solid power team, including reputable skilled |
| now! | | | | contractors who will fulfill this end of things. |
| It's the perfect time to get involved right now as | | | | 4) To get great deals, buy from motivated |
| a real estate investor. Lenders are currently | | | | sellers. Banks are quite motivated these days, |
| finding themselves in situations where they have | | | | being that they have so much inventory right |
| loans that are not getting paid, and home owners | | | | now due to all the foreclosures. There is also a |
| are being forced into foreclosure everywhere you | | | | system to find motivated sellers out there called |
| turn. There are banks all over the place with so | | | | the Four D's. Look for them. They are: Death, |
| much inventory, they don't know what to do with | | | | Divorce, Disaster, Disease. All of these reasons will |
| it. They simply cannot move it quickly enough. | | | | produce motivated sellers and you will be helping |
| There are also thousands of incredibly motivated | | | | these folks out who have been hit by these |
| sellers just waiting for someone to come along | | | | types of life events, by purchasing their home |
| and save them from foreclosure. That 'someone', | | | | before they go into foreclosure. |
| could be you. | | | | 5) He who mentions dollar amounts first loses. It's |
| There are a few things that you should keep in | | | | a known fact. The first rule of negotiation is to |
| mind before getting started: | | | | wait for the other person to name a price. List all |
| 1) Never pay too much for your investment | | | | of the items on the rehab punch list during the |
| property. There are plenty of homes available for | | | | counteroffer phase, as negotiating power. |
| very reasonable prices. You make your money | | | | 6) Finally, The best thing that you can do for your |
| when you buy! You should never pay more than | | | | own success in real estate is follow and focus on |
| 65% of the after repaired value of the home. | | | | a tried and true system for investing in real |
| Don't forget that you will have other costs to | | | | estate. Find something that resonates with you, |
| pay, such as holding costs, closing costs, as well | | | | stick to it, focus on it and take action-that's |
| as any money that you spend on the rehab of | | | | where most folks fall short. Just do it! Stick to a |
| the home to bring it up to rentable or saleable | | | | tried and true system and you will be making |
| condition. Bottom line, you need to be able to still | | | | money in no time at all. |
| turn a profit. | | | | |