Success Real Estate Investment Source
  • Research and know your local real estate market well.
  • Always use a direct private lender who can fund loans within 2 weeks. Conventional lenders take to long and banks are interested in disposing of the REO’s as is, to a buyer who can close in 2 weeks or less.
  • Keep acquisition price very low, 40-60% of A.R.V. Don’t be afraid to make multiple offers on multiple properties to get the best deal. Be prepares to walk from as many as 10 deals before landing one prospective property.
  • Stick to simple properties in urban areas that will sell quickly, 3/2 S.F.R. in well known track neighborhoods can move quickly.
  • Always determine you’re A.R.V. and work backwards to your offer price. Try to keep your final expected sales price at 90% of current comps, working backwards from there to arrive at your maximum purchase price.
  • Always prepare a rehab budget and try to stay as close to it as possible.
  • Use new cost effective appliances, lights, fixtures and paints from well known and inexpensive home improvement retailers. Keep products simple and inexpensive.
  • Use neutral colors.
  • Keep landscaping simple and neat.
  • Keep rehab timelines less than 45 days.
  • Work with small mom and pop handyman services who can preform most of your repairs. These companies have low overhead, usually complete the work themselves, and can provide you the best price and often the best and fastest service.
  • Do not get emotionally involved in properties, locations or improvements. Do only what works and what sells fast, regardless of your tastes or desires. You must provide a product that is desired by the masses. Stay away from medium or high priced appliances, lighting or plumbing fixtures as well as vibrant colors and complex landscaping. Low end paints, carpets and appliances provide the best return.
  • Market the property yourself but also enlist the help of a local real estate company that has experience dealing with real estate investors.
  • Always have a back up exit strategy to either sell or refinance and rent the property within 6 months from initial purchase.