I have been told you can make some fast money in real estate. Buy a house cheap. Throw a coat of paint on it and some new carpet and you are on your way to instant wealth.
I get calls from people wanting to be investors all the time. People who want to flip property mostly, because they don’t want to deal with tenants. I can understand that I have had some tenants I would rather not have had to deal with either. But as the old saying goes: If it were easy everyone would be doing it. Now I don’t want to discourage you, if you are thinking about buying investment property, but you should know it is work.
There are some basic questions you should ask yourself before you begin.
What will the property sell for when it is remodeled?
Will the property I purchase resell fast/
Is the floor plan functional or does it contain some dysfunction?
What will it cost to repair the property?
Can I do any of the work myself?
Do I have a list of contractors or can I get a list of contractors?
Do I have enough cash reserves for the remodel?
Create a budget and stick to it. This is sometimes easier said than done. Do not over updates for the area. The appraiser is not going to over value the property just because you did, and neither is a buyer.
I have personally rehabbed several properties, rented properties and flipped properties. The knowledge I have obtained over the years does not come from seminars and books but rather life and the school of hard knocks. I have worked hard and been fortunate to find some really good deals. You can make money investing in real estate but don’t think it is like you see on late night t.v.
If you have questions about investing in real estate, please feel free to contact me at 405-213-2992 or visit my website http://www.sandiwalker.net