1.Bigger Profits ?/b> bigger profits are in bigger deals. Working in the average price range and above in your area is a good place to start. Big-time investors say go where the money is at 2 to 3 times your average area sale price and higher. There are more handyman investors chasing the smaller deals and actually driving up the prices therefore making minimal profits.
2.Locate the Property ?/b> These homes are available in almost every neighborhood. All over the country are foreclosure homes in every price range. There are million dollar foreclosures right here in Charlotte, NC. Work with a professional real estate agent be aggressive go after the bigger deals where there is less competition.
3.Making Offers ?/b> the process is the same in no matter what the price range you work. Determine after repair value, subtract repairs, subtract carrying costs, subtract your overhead, and subtract your profit (minimum $25,000) equals maximum offer. Offer something way less than that and then negotiate to somewhere under your maximum offer amount.
4.Financing ?/b>not very often are you going to get the same bank to finance a foreclosure deal. You can possibly get a bank to finance a construction loan if you can wade through all the paperwork, use your credit cards (old school) best are to keep on finding outside sources like hard money lenders, partners, private lenders, your self directed IRA, someone else’s self directed IRA or anyone of your contacts who wants to make 10% to 12% on a first mortgage secured by real estate.
5.Repairs/Renovation ?/b> speed and quality are what you need and are expecting from you workers. Hire or have on your team a group of excellent and competent contractors and suppliers. They may cost more but your savings in the 2 to 3 or 4 months in extra carrying cost after shoddy workmanship will off set the additional expense. Time is money, in this case big money.
6.Marketing/Selling ?/b> start selling before you close on the purchase. Advertise for sale by owner when the agreement for sale is signed by you and the seller. You may be able to turn over the property at a profit and let your buyer close with the seller without any expense on your part. What is the ROI of $10,000 with $0 investment? Begin your advertising as an “as is?price, increase your sale price as you have work scheduled and ordered. By waiting until the project is complete to start advertising will put you 3 to 4 months behind in the process.
Working where the money is, is the same process as working on cheap houses just by adding more zeros to the end of the check. You work in better neighborhoods your appliances and fixtures won’t get ripped off every weekend. There are more opportunities to sell in a place where people really want to live.
Bill Carey with over 30 years in real estate sales, investments, and home building offers a unique perspective to the buying and selling process of residential real estate for F*R*E*E consumer information and reports log on to http://www.CharlotteNCExecutiveHomes.com and see"Insider Real Estate Secrets Revealed" ...a must-read for Home-Owners and Renters!It's a F*R*E*E 12-lesson e-course covering more than 20 topics exposing the realities behind buying and selling a home.It Could Make(or Save) You Thousands of Dollars
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