“Time is Money” – never is that more true than in a real estate investor’s flip project. Each project property is running a dollar meter every day until it sells to a homebuyer. Beware of these pitfalls that can cause project delays and drain your cash on your carrying costs, including utilities, insurance, interest on borrowed funds, etc. Do-It-Yourself work, followed by professional do-over’sNew investors are told this until their ears bleed – and still some will overestimate their ability to save a few bucks with a DIY. If you can’t do it to the same standard as an expert Read more…

Experienced real estate investors have learned to appreciate those title companies with personnel that will work with them and do a great job. But new investors may be thoroughly confused – what is it that title companies do that result in all the charges and fees? What should you expect from your “favorite” title company?   First, know that your local title company is eager to talk with you and explain what they do, even before you do business with them. As a real estate investor you are a wanted repeat-business customer. Take them up on their open door. Let Read more…

Question: Perhaps every property problem is fixable in some form or fashion, but always ask yourself – “is it worth it?” How does the savvy real estate investor evaluate when the answer should be “no”? Answer: The “problem” itself is not what matters, or whether you think it is a “big” or “small” problem. Learn the simple wisdom of always focusing on the big picture: the effect on the project’s profitability. Of course you can’t duck every big issue and stay in this business! There are plenty of profits to be made on a property problem, if you can use Read more…

The whole point of real estate investing by flipping properties is to do projects and make money – so not doing a great deal because you are out of ready cash defeats the purpose! But where is this money-tree that can expand your business and your profits?   Unless you just sold a project, as a flipper you are likely to consider yourself constantly “broke”. Flipping is a cash-eating beast, even if the end of the project has handsome rewards for having the fortitude to complete it. Especially if you are doing more than one project at a time, active Read more…

Making below-market offers is a kind of reverse sales process, and an intriguing part of the wholesaling and flipping areas of real estate investing. You want to convince the homeowner/seller to let you give them money, rather than persuade them to give you theirs. But – and this is a very big “but” – you are offering less than they probably think they should have. Why should they agree? Will they accept your offer because, objectively, this is the smartest decision they can make? Interestingly, people rarely make big decisions based on objective criteria. Most decisions are emotional, even major Read more…

Where can you find a rehab property with good potential for wholesaling or flipping?   Your first criteria for buying to wholesale, or to fix & flip, is to purchase at a steep discount from the local market value. So, you are looking for problems you can fix that will lower the price, substantially. That means properties with problems, and sellers with problems – both types of problems being the kind the homeowner can best solve by selling this property fast, for cash.   This is where the footwork comes in, and where you, as a wholesaler, add value for Read more…

What makes a property a good wholesale prospect? My first and shortest answer is that it has to show that it can make enough money to get a real estate investor’s attention – and even more to make it worthwhile for you, as the middleman.   Remember that the greatest risk belongs to whoever does the rehab and then either sells to the home buyer, or rents the property out. The rehabbing investor gets the greater share of the profits, often twice what the wholesaler will make.   Criteria #1 is to satisfy your target investor who will buy (or Read more…

I began wholesaling over 13 years ago, because I had too many properties at one time, and not enough crews to work them all. Some properties would have to wait several weeks before a crew could start – costing me money all the time.   In property investing,waiting drains the wallet with monthly carrying costs such as utilities, insurance,interest on loans, upkeep if a yard must be maintained, and even security measures. Money is going out by the double-handful, and nothing is coming in.   An equally important cost of waiting: I had put capital into each of them that Read more…

Real estate investing for rehabbing requires that you master a critical skill: determining the ARV, or the After-RepairValue, of a property. This number determines what purchase price you should offer`the seller to lock in your profit.   You can research the ARV before you know the contractor’s estimate, or your purchase price.Look outwardly at the market, and let comparables guide you toward the ARV.With the ARV in hand you will know how much this deal will earn after all the costs are paid out – rehab costs, selling costs, and all carrying costs.   Wholesalers especially must be able to Read more…

This month’s wholesaling theme will have you searching for real estate investors to take over projects you’ve found. These people will also be great contacts for future real estate investor sales, partnerships,and sources of great leads – so here are some tips on where the elusive real estate investors may be found.   Real estate investors aren’t that hard to find if you think about it – in fact, they are trying to find you, or at least your wholesale property that’s primed to make them money!Be out there in the space they hunt for such properties. Put together a Read more…