How to Become a Successful Real Estate Investor

Many folks dream of becoming real estate investors, but not everyone has what it takes. If you’re dreaming of becoming an investor, here are several important questions to consider, long before you buy your first investment property:

1) Why would a homeowner sell a house at a bargain price?

Many things happen in people’s lives that make their home suddenly become a burden. Loss of income, divorce, or illness are the most common, but sometimes a homeowner dies, leaving a home that none of their heirs wants. In any case, the home has become a problem, which is where you, as an investor, come in. The homeowners, or the heirs, have a problem, and you must find a way to offer a solution.

2) What types of houses should you look for?

Besides being owned by someone who no longer wants or can afford to stay in a property, you want to find a home that’s only tired, and not in need of structural work in order to favorably compete with similar houses on the market. We call that type of house a “doghouse.”

3) How do you find doghouses?

Your real estate agent can scan the MLS listings, looking for fixer-uppers, handyman specials, or as-is houses. You can also find similar properties yourself, using the local newspaper or shopper.

4) Should you try to close quickly?

This is an important step in becoming successful, because beleaguered sellers will almost always be in need of money in as short a time as possible. Get yourself prequalified and preapproved for a loan, so you can close on the property quickly. Being able to let sellers know they’ll get paid fast will consistently net you more houses than your competition.

5) How do you flip houses fast?

Find ugly homes, in good neighborhoods, that need as little work as possible. Clean them up, paint them inside and out, and install a neutral shade of new carpet, and you should be able to flip the home in a short amount of time. Always keep your limitations in mind. Hiring professionals for repairs will cut into your profit margin.

Asking yourself these questions will help get you started in your real estate investment career, and keeping these answers in mind at all times will keep you from making costly mistakes as you buy and sell investment properties.

A Beginner’s Guide to Flipping Houses

If you’re dreaming of making money in real estate, it’s time to stop dreaming and get to work, because making money in real estate isn’t just a vague pipe dream. It can be done, even by a young and inexperienced person, when you learn how to “flip” houses.

A friend of mine, we’ll call her Tai, made a fortune in real estate, beginning at the age of twenty, with no help from anyone else. Here’s how she did it:

Tai began by buying a HUD repo, which allowed her to get into the house for no money down. Then she fixed it up and sold it herself. At closing, she had made enough profit to by a second fixer-upper, but this time, she paid all cash. Tai went right to work fixing her second house, and when she sold that one, she collected profit of $44,000, which allowed her to pay cash for her third house!

By now, Tai was comfortable with her formula, and within a short time, she had flipped her third house, realizing enough profit to pay cash for yet another house, as well as being able to buy the custom pickup of her dreams. And all of this had happened in the span of just nine months!

Tai’s formula was simple. She located houses that needed only cosmetic work, avoiding those that required structural repairs. She did all the painting herself, inside and out, and updated the home’s lighting, plumbing fixtures, and carpeting. Once renovations had been completed, all three houses sold quickly, and at a significant profit.

Flipping houses is the most tried-and-true way to make a fortune in real estate, so don’t listen to anyone who tries to tell you that it can’t be done or that you need to have a great deal of start-up money. That’s not true. You can buy houses with no money down through various loan programs, and sellers will often help you with the closing costs.

I know what I’m talking about. My husband and I bought our 27th house earlier this year, for no money down, and we expect to make a profit of at least $100,000 for just one month of hard work!

But we take the process a step further, making our houses outshine the competition by also using Design Psychology, although our buyers never know that. All they know is that they feel good when they’re in our homes, which makes them want to buy them, even if they’re more expensive than the house next door.