Cashflow Positive Everytime
Cashflow Positive Everytime
The purpose of this article is to provide new people to real estate investing a little bit of help. This particular type of investing can very risky. It is possible to lose your life savings on one deal if you're not careful and there's plenty of people out there ready to take your money for crap in return. I know because I've had my share. Here are some tips to get you started if you're looking to purchase rental properties. This is the best strategy right now besides short sales with the state of the economy and market. Remember, You make your money when you buy. You get paid when you sell.
Never buy based on emotion. The only thing to get excited about are the numbers. What do I mean by that? Well, when you learn how to evaluate the numbers of a deal and they all work out and you end up with cashflow at the end, that's when you get excited!
When you are looking at homes to buy, become the expert. Learn what old water heaters look like and new ones. Learn what an electrical panel should look like and how much juice is coming into the house. Become nosy and ask about everything. Seriously. The owner/seller might become annoyed with you, but who cares. Once you buy it, you assume all risk.
Negotiate everything. Because this is a buyers market, sellers will have to make concessions they normally wouldn't. Don't be afraid to ask "Is that the best you can do"? Find as much wrong with the property as possible and use it as bargaining tools.
Make sure you find a property you are willing to manage, close by or have a GREAT property management company in place to manage it for you. Buy a home you are comfortable with fixing up yourself at first because you could easily become overwhelmed with financing the deal, fixing it up, trying to find good tenants, and managing the property. Try to find something in your budget in case the tenants don't pay on time or you have to evict them.
Real estate investing is still very alive and if you find the right market and the right deal, the money will come rolling in. Check back later when I will evaluate actual numbers on a deal and show you how to make some money.
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