Buy and Sell Houses
My iron clad plan before I buy an investment house.
Test-Ads in the newspaper and real estate advertising websites:
I place Test-Ads before I buy an investment property, to see if there are any interested home buyers or renters, for the property I'm interested in buying, before investing in rental property or fixer-upper houses to sell.
Anyone who responds to my home-for-sale or home-for-rent advertising, provides me the information I need on how to proceed in my target area.
My goal is to identify the demand and fill the orders.
I'm not misleading prospective buyers or renters who respond to my ads.
I let them know I'll have a home remodeled in the area within a couple of months and ask them what they are looking to purchase or rent.
I want to make sure there will be an interested buyer or renter, in the neighborhoods I buy and sell houses.
A small price to pay for a local newspaper ad; $20.00 to $50.00 per ad, to avoid the mistake of finding out, if there is no one interested in buying or renting from you, in your target real estate investment area!
Also, use internet advertising websites to list your ads for free.
If you have a Realtor® on your Team, plug into their real estate marketing system. Feedback on the local market your working in, from your Agent, is most valuable!
"Try It Before You Buy It!" Its a famous slogan, and it works here too. I run those test ads...
I want to find a buyer or renter before I buy a property to invest in.
When you buy and sell houses, that means you're selling more than just one house.
So your offer to sell and rent houses has to be an obvious Win / Win Strategy that works consistently.
Word of mouth will pre-sell your properties when working in your Local real estate market, consistantly!
What to provide your buyers and renters?
Features, Advantages, and Benefits:
We must be creative and competitive to keep the projects flowing! Don't get greedy and we'll never run out of business.
Remember - Win / Win.
Now That's A Different Story! We have to be ruthless!
From knowing what our customers are looking for; we can only pay a certain amount for investment houses, plus fix-up and carrying costs, add in a fair profit, and fill the order of the buyers and renters we have on our list.
Caution: Sellers tend to be in love with their properties! They often want more than the actual value of the house, because...
...It's their home!
There may be Realtor® commissions involved. If the seller wants too much, there won't be much room to make a fair profit.
Walk away from those deals!
Caution Again: Buyers sometimes fall in love with a property too. Those are the type of renters and home buyers we are looking for, however, as an investor, falling in love with a property can be a costly mistake.
Develop your own system of buying, make offers to purchase on a regular basis, the more you let people know you buy and sell houses in your area, eventually the deals will find you.
The best deals and the lowest prices may be found in Probate and Tax Sales, including bank owned homes.
Working with Attorneys may lead you to those deals, although, these particular deals many times, may take you quite a distance from your home area.
Do check with your local Attorneys and City Offices so when Tax Sales and Probate deals do arise, you are first in place. These are the opportunities to make better than average profits, than houses listed as, "For Sale By Owner".
We can take the same position we offer...
When we buy and sell houses, our buyers in many cases need a lease with an option to buy.
If we don't have a cash buyer, a lease does generate the cash flow to cover our expenses (and profit too) until the buyer can qualify for a new mortgage.
This works for the Real Estate Investment buyer as well.
In other words, if we have to offer a lease option to our buyers on occasion...
...We can certainly expect to find lease option deals from sellers that we can buy from too!
Line up several Private Money lenders! To buy and sell houses (more than one - right!), working capitol is the primary ingredient.
Private money lenders are People You Know that are willing to lend you money for a real estate investment.
More about Private Investor Funding on ask-the-rehabber.com.
There are additional options to create money to invest in Real Estate...
There's more than one way! I wrote an article for you about it on this site, follow the link below...
Contract For Deed
Also known as a Land Contract and Seller Financing.
The difference between a Mortgage and a Contract for Deed is, Who Holds The Title?
On a Contract for Deed the seller maintains the Title in their name until the contract is paid in full.
With a Mortgage, the buyer holds the Title in their name, with a lien against the Title.
Due On Sale is always present nowadays in Mortgages.
When buying on a Contract for Deed (land contract) the due on sale can be negotiated!
Buying an investment house on a land contract makes it possible sell that house on a land contract.
As I mentioned in Leases, in the paragraph above...
...Expect to get, what you are willing to give.
Tell your seller that you buy and sell houses and would like to be able to sell the property when you complete the renovations, to your buyer on a Contract for Deed, and that you will include a due on sale in the second contract for deed, with your personal guarantee that it will get paid.
Contract for deed was quite normal in my portfolio in the 1980's because of high interests rates and difficulty to qualify for mortgage loans.
Land contracts are popular again because of mortgage loan qualifications.
More about the advantages of holding a land contract on this site, follow the link below...
Buy and Hold
There is a big advantage to managing a rental property (holding) after rehabbing the home.
When we Buy And Sell Houses:
When we Buy And Hold Houses:
We become a Landlord or a property manager.
Holding a property, collecting rents, and dealing with Tenants is a different business in itself than rehabbing homes.
I'd like to introduce Paul to you with his website Investing In Rental Property.
He is very resourceful with his 20 years experience owning rental properties.
If you have any questions or comments on how to buy and sell houses, please follow the links below.
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