| One comment that I hear over and over from | | | | the way it normally works. And I am here to |
| new real estate investors is that they say | | | | tell you that it is much easier to turn a |
| they are looking for a "light rehab" or a | | | | profit and certainly a significant profit on |
| "cosmetic only rehab". When I ask them why, | | | | junker houses that need significant |
| many new real estate investors do not know | | | | renovations and/or updating than it is on |
| why. Some do and they say that they would | | | | houses needing very little work and zero |
| "feel more comfortable" starting slow, or | | | | updating. |
| they do not know any contractors, or they are | | | | |
| not sure what to do first. Some new investors | | | | To make money in short-term real estate |
| have actually admitted that they are too | | | | investing, you need to buy low, renovate |
| scared (even though they are not sure of | | | | inexpensively (though not cheaply) and sell |
| what) to take on a big job in the beginning. | | | | quickly. When homes only need paint and |
| | | | carpet, or even paint, carpet and roofing |
| I continue to educate new real estate | | | | (for example) sellers simply do not need to |
| investors that generally speaking, looking | | | | discount them as low as we real estate |
| for light or cosmetic rehabs is not how this | | | | investors need to buy them. |
| works. And if you are looking to continually | | | | |
| feel comfortable then you might want to look | | | | The Real Estate Investors that I know who are |
| for another hobby or a different business. | | | | constantly profitable (no matter what the |
| Most successful people will tell you that you | | | | news says the housing market) are those who |
| must get outside of your comfort zone to | | | | are looking for the worst house in the best |
| excel. | | | | neighborhood. |
| | | | |
| Let me start with a few questions: How many | | | | We are looking for tall grass, unkept |
| books on real estate investing have you read | | | | shrubbery, damaged roofs, and fallen gutters. |
| say to go look at properties that need only | | | | Investors like properties that have been |
| paint and carpet? How many bootcamps have you | | | | condemned or that have code violations. We |
| attended teach new investors to look for 10 | | | | look for holiday decorations in the middle of |
| year old properties? How many infomercials | | | | the summer which might tip off an investor |
| have you seen that speak about cosmetic | | | | that there is probably differed maintenance |
| rehabs? | | | | on this home. This means the owner (who |
| | | | normally removes holiday decorations in |
| I will answer first, how about not many or | | | | January) may be ready to get rid of this |
| even none, zero. While I continually see many | | | | property. |
| new real estate investors say that they are | | | | |
| looking for a light or cosmetic rehab to | | | | The bottom line is that if you are looking to |
| start, it is my belief that this is entirely | | | | make money investing in real estate, it is |
| based on fear and the feelings that this will | | | | time you stop looking for light and/or |
| make it easier. | | | | cosmetic rehabs. The real profits are in the |
| | | | tired, old, smelly, fixer-upper type |
| In fact this is simply not true. That is not | | | | properties! |