Real estate investing prep plan for you to go over before starting

Real estate investing prep plan for you to go over before starting

If you lack money but can spare a lots of time, and you also wish to enter the real estate business, you can start by purchasing houses which require lots of repair work, fixing and furnishing to increase their value. This way was adopted by many successful real estate investors.

Here we list the six simple steps which you must follow when you purchase properties and do necessary renovation in them:

1. You need to do lots of hard work and research to locate properties which are low priced than those in their neighborhood because of their down condition. Such property is usually available at about 15% less than the similar homes available in that area if cost is calculated per square foot.

2. Go forward and buy this house at lowest price at cash down payment and ask the property seller to carry back the second mortgage for the house.

3. After the purchase, move into the property and start your work at weekends for the renovation and refurbishing, if possible doing maximum work yourself. Many husband wife teams have been very successful in launching themselves towards financial freedom by doing work as a team by first purchasing and then fixing the house.

4. After fixing and renovation when the house starts looking durable and attractive, you can do few things. You can sell this house for a higher price and keep the profits and buy another home for further renovation. You can even rent out the property and get the refinance done for the amount you paid for it initially.

5. You can repeat this entire process with another property, again doing fixing and requisite renovations and then selling or renting the same.

6. This way you will start increasing your assets and your cash flow would increase. You can move up the ladder and start purchasing and fixing the duplex and even apartments.

You have two advantages when you buy properties and then do the requisite fixing yourself. First you can do this as a side work while keeping your full time work, helping in the process to generate the money you may need for renovation. Secondly, you may start on a small scale with no money and no large risk and go on expanding your work as you gather more experience and work knowledge.

You generally make money when you purchase a property and not when you sell it. You make profits when you buy real estate at proper price and at a right time. You should never get emotional when you go out buying the same. Always see the property as pure investment. You must keep in mind that a property is an asset only if it gives you profit.

Make it a point to read book on the real estate subjects and take time off to attend few seminars regularly in real estate field. You can go out and examine properties each week which are up for sale, even if you are not actually buying them. This way you will gain practical experience in this field which is all the more necessary in real estate investing field. Millions of women and men have gained financial freedom by making investments in the real estate with requisite experience and knowledge and there is absolutely no reason why you can’t be successful in this business.

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