| The contrarian in me is licking his chops at the prices | | | | close. No money...no deal. |
| of houses in the United States. The US market has | | | | Rule 2: Know the area. Can your buyers find a job? |
| undergone severe corrections over the past few | | | | Are employers entering or leaving the area. This will |
| years. Economic uncertainty is still in the air and there is | | | | impact on the attractiveness of the area to lenders. |
| the potential for further mortgage defaults on the | | | | What are the average wages in your area? |
| horizon. | | | | Understanding this will enable you to determine the |
| Real estate investment is a game of risk vs. reward. | | | | price point you should be operating at. This is in addition |
| While the age old saying is location, location, location | | | | to the usual proximity to shopping, schools, churches |
| you can also add timing, timing, timing to the equation. | | | | and transit. |
| The key to winning in this market is understanding the | | | | Rule 3: Be well financed. You cannot operate on a |
| economics of the market and the correct price point | | | | shoe string in this market. Your potential investors or |
| that the market will support. First a review is in order of | | | | banker will want to know that you can stay in the |
| the fundamentals of buying and selling real estate, and | | | | game until you close. |
| how they apply in this market. | | | | Rule 4: Pick your targets carefully. You need to buy |
| Buying and selling real estate requires discipline, risk | | | | 25-30% below your target sale price to make a profit. |
| tolerance and an understanding of both the market | | | | Rule 5: Understand what you can fix and what you |
| and the marketability of the house you wish to sell. | | | | should walk away from. The current market will allow |
| You need to be well financed and focused on the final | | | | you take a closer look at the house to ensure that you |
| outcome of the transaction. Real estate investment is | | | | do not have to include structural repairs in your retrofit. |
| a mix of emotion and business. Gone are the days | | | | These rules will allow the investor to begin the hunt for |
| were chutzpah and a good banker would allow you to | | | | available properties. Closing quickly and with the |
| make money. | | | | assurance that you know the house will enable you to |
| Rule 1: Know your market and your buyer. Understand | | | | make a profit for you and your investors. |
| how much they will earn, were they likely will work, | | | | Ignore the rules? You may as well start throwing |
| their age, family status and education. Once you have | | | | hundred dollar bills out the window. |
| a deal lined up you need to know that your deal will | | | | |