For the last few years I have been giving out advice on how to invest in real estate. On top of that I have been giving out the content for free. However, there are a large number of you who have not or will not take action. At some point you have to take everything you have learned here and everywhere else and take action. Do not be another “paralysis by analysis” type.
The number one thing that you need to do is find a deal. A real deal that anyone would buy, finance and/or want to partner on. In most markets that I am in that magic number is currently 70% LTV minus repairs, sometimes 75% LTV minus repairs. Many would say that these deals do not exist but I am purchasing at least one on these deals each month. You do have to do due diligence on plenty of not so attractive properties but if you look at enough properties you will find a deal. When you find a deal, do not hesitate to write the contract and lock the deal up. Take ACTION! If you write an option contract you have nothing to lose but the option money, which can be as low as $10 but usually $100. This is where your negotiation comes into play. During this option period you will do more extensive due diligence and discover if you really do have a deal.
While doing your due diligence you can simultaneously find another investor so you may wholesale the deal, find a private lender to finance the deal for you or find a veteran investor that is still actively investing in your market to partner with you. No matter which direction you go you should make a profit. Partnering with a veteran investor, in your market, can bring additional benefits. They may even have some insight about the neighborhood the property is in because they may have already invested in there before. They may already have an occupant buyers list built from the last property the investor flipped in the neighborhood. This one partnership may lead to the investor wanting to invest with you again and again. He/she may even invite you to participate in deals they find. Going for the fast quick cash is always appealing but always think long term.
What if the property you contract turns out to be a dud? Who cares! You can use the information you discovered during your due diligence and show the seller why it is a dud and renegotiate. If your argument is good and can be supported with facts, you might still have a deal. Regardless, of whether the property is a dud or not you have taken action, and that is the most important thing to consider. Even if you do not end up closing on the deal, you have now experienced the steps of moving towards actually closing a deal and investing. This will increase your confidence so that when the next opportunity comes around you will be ready to take action.
Keep in mind that while the mechanics of closing on an investment is the same for every closing, each transaction is unique and you will always learn something new throughout your investment career. Keep the win-win mentality and many more opportunities will present themselves.
Source: Take Action Now!