You Must Have A Plan To Achieve Success In This Real Estate Market
A few years ago anyone could go out to buy a property and expect to see appreciation within a few months of their purchase
. Those were the good old days and it will be awhile before those days come back around. Until then, its time to make it with the resources available.
First of all, the days of flipping houses to someone that is going to move in a house are almost completely out of the picture. Buyers will need to have pristine credit with a hefty down payment to pull that off and chances are they will not want to be involved in your deal unless you can provide them with a solid deal with loads of equity. Basing a plan around flipping a house to an end buyer that is going to occupy that should be rethought out.
The best to make your money in this market is to buy a property to hold. Interest rates are low and home values are near market bottoms. Most smart investors arent willing to touch a property unless it has potential for serious cash flow. That means an investor would like to net about $400 cash flow, so it would be best to find really good deals which you wont see a lot of profit. Thats ok if you can find a steady flow of deals to keep investors happy. If you dont have the cash or credit there will always be investors looking to dump their money into an asset that makes sense.
Then you will have to focus on finding motivated sellers with equity. Most motivated sellers today dont have the equity to make a deal worth while. In fact most homeowners cant give their properties away. So your next step would be to put a plan together to find those elusive sellers with equity.
Once you have your financing in place, you can spend the bulk of your time beating the bushes for sellers. If you want to find the sellers with a lot of equity you will need to go through 30-40 leads to find that one, be prepared to tailor your plan as you go.