How to find the best deal?
Ready to buy your first investment? Step 1: read this.
Want to know how the richest man in America gets rich? According to Forbes 400, 33 us billionaires invested in real estate last year. I don’t know what will happen if that doesn’t get you into real estate investment.
Now that I’ve noticed, are you motivated to take action? There’s no reason why you can’t end up on that list of who’s who. Of course, it all starts with finding the best deals. Although there is no guarantee, I will share a blueprint that Robert and I have successfully used for decades.
For us, the way to win is to look for assets that generate cash flow and the possibility of capital gains. Why is that? Although we are not flippers (we believe we can stick to our investments as long as we generate cash flow and passive income), we do like choices. One day, we may need/need to sell – is it good to do so for profit? Of course! So let’s go a little bit deeper.
Take some time to determine the standards that all property rights must meet. That way, you’ll immediately know if it’s worth investigating. For example, one of my must-have items is a property near my home. It’s important to know the community well, and it’s easier when you have the opportunity. In fact, the first real estate investment is so near to me, I can jog there, and I do this a few times every week, to see if there are other houses for sale, atmosphere, if there are any significant changes in the region and so on
When it comes to your first investment, size is really important, and I believe small is better. In the first deal, you should invest a lot of time and money, but many people do the opposite. Well, I wonder why they failed? The smaller the investment, the smaller the risk. Isn’t that a good idea when you’re on the learning curve?
Look for problematic attributes. I bet you don’t expect me to say that! But to be honest, one of the best things you can find is a problematic property that you can solve. When Robert and I met a 37% vacancy rate in phoenix, we asked ourselves the following question: “how can we solve this problem?” It turned out that the house was run as a hotel: people could rent a fully furnished apartment from anywhere from a week to a year. However, no one wants to go to phoenix in the summer, so most of the units are empty in these months. We did our research and converted short-term rental apartments into regular long-term rental apartments. The vacancy rate rose from 37% to 3% and property values soared. We won cash flow and capital gains!
Become a professional reading professional. Preparation is an investment real estate financial statement. But unlike the cash flow statement that represents current income and expenditure, forecasts are projections of projected income and expenditure. Most professionals don’t show actual running Numbers. Ask an agent because it is his or her job to collect the form information to sell the property to a potential buyer. Once you know the basics, you’ll always get the information you need. A test note will tell you whether a property is eligible for further examination. If you decide to pursue the real estate, so you will use for reference number as you use the rich dad real estate appraisal ™ to the starting point of financial analysis.
Negotiate with Numbers, not emotions. One of the biggest Numbers, a number, you won’t be on it, remember before you start negotiating. When you reach that number, you either exit the transaction or get other concessions, and it is economically feasible to buy the property. So don’t fall in love with possessions. If you can’t reach a good understanding with the seller, you must be ready to shake off the deal. After all, the deal is about making money.