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Hub You - Where Are The Really Good Real Estate Investment Deals?
When you look at an economic forecast calendar for the Forex Market you begin to think you’ll be spending all your time studying the economic climate of several countries instead of actually trading. The good news is there are a few key news announcement each month and if you concentrate on those, you will have plenty of time to trade. Here we will discuss some of the monthly news announcements that tend to really make the Forex market move.1. USD Non Farm Payroll: This is one of the favorites of Forex news traders. Big moves in the market can happen the second these numbers are released
The point here is to give you an idea of what kinds of homeruns rehab real estate investors look for. But, here is a key point…
It's truly NOT worth my time, or your
Consulting Consulting taps into the expertise of the consultant’s experience. The client gains valuable insight that would normally take years and thousands sometimes millions of dollars if they were to go down the same path. Consultants usually charge a nominal fee compared to the information assets they have gained throughout the years. They have thoroughly studied the subject which entails thousands of dollars and hundreds of hours in information. They have met with industry leaders as well as “on the street” professionals so they have a good beat on what’s currently going on. Th
In that article I described investing from what I've found is typical in doing this business. I wrote about where I TYPICALLY find the deals. Well, what IS typical in this business?
No two deals are the same, that's for sure! Every rehab itself is different with different problems to solve. So, in describing a typical deal, I'm referring to the spread involved. The spread is the different between what I can buy the house for, and what it's value will be when it's brought back up to standards.
The next big question is, "What will the rehab going to cost."
For instance, if a property in my market has a $25,000 spread between what I can buy it for and what I can sell it for (the as-repaired appraised value), it's a "maybe" in my book depending on how much rehab it needs. If it needs much, I would probably pass unless some external factor makes it a good buy, like the neighborhood. In other words, if it needs much rehab, I'd have to be convinced enough to put some of my own money into it.
I typically look for houses with a $30,000 spread or better. You have to decide for yourself, based on values in your area and what is the minimum you want to make, what spread you'll be happy with.
So, what is a rehab real estate investor's "homerun? "
Homeruns occur at the outer edge of what is typical. My homerun deals have occurred one of several ways.
- The spread is stellar. Let's say the spread is $45,000 and the rehab is a manageable $5-10,000.
- The spread is good, but the rehab is very light. Wham-bam, I'm looking for tenants within days of closing.
- The cost is exceptionally low for a given area. Sometimes the spread on paper will not be anything to get excited about, but the property has a huge lot, extra bedrooms, or is located an area that is in serious demand.
- There is NO rehab, and the spread is sufficient that I can buy it with none of my own money.
True story - I've only had one NO rehab deal. Wow. This house had been recently rehabbed, clean and didn't need a thing! This was a homerun just due to the ease at which I added this property to my inventory! The spread wasn't great, in fact, I had a local hard money lender make up a story about being out of money because he thought the spread was too narrow and didn't want to lend on it. He wrongly assumed there was a significant rehab. (Being straight up with me was too hard, I guess.) I consider this a homerun because I bought this property, changed the locks, put out a sign and had it rented within two weeks. Mind you this is a beautiful well-built brick/block home in a great neighborhood. Cost to me…nothing. This house has one of my best cash flows month-to-month.
The point here is to give you an idea of what kinds of homeruns rehab real estate investors look for. But, here is a key point…
It's truly NOT worth my time, or yours
Ecommerce trends in 2007 will likely be just as progressive as they have been since the internet was devised by the American military in the 1960s, but particularly since the inception of the World Wide Web by Tim Berners-Lee in 1989. There are a number of trends that indicate more widespread use of technology in several areas of ecommerce, of which the following five are likely to expand the most.The first is the use of video. Video is already in widespread use as a marketing tool, and no self-respecting internet guru would consider marketing a product without offering a streaming in
The next big question is, "What will the rehab going to cost."
For instance, if a property in my market has a $25,000 spread between what I can buy it for and what I can sell it for (the as-repaired appraised value), it's a "maybe" in my book depending on how much rehab it needs. If it needs much, I would probably pass unless some external factor makes it a good buy, like the neighborhood. In other words, if it needs much rehab, I'd have to be convinced enough to put some of my own money into it.
I typically look for houses with a $30,000 spread or better. You have to decide for yourself, based on values in your area and what is the minimum you want to make, what spread you'll be happy with.
So, what is a rehab real estate investor's "homerun? "
Homeruns occur at the outer edge of what is typical. My homerun deals have occurred one of several ways.
- The spread is stellar. Let's say the spread is $45,000 and the rehab is a manageable $5-10,000.
- The spread is good, but the rehab is very light. Wham-bam, I'm looking for tenants within days of closing.
- The cost is exceptionally low for a given area. Sometimes the spread on paper will not be anything to get excited about, but the property has a huge lot, extra bedrooms, or is located an area that is in serious demand.
- There is NO rehab, and the spread is sufficient that I can buy it with none of my own money.
True story - I've only had one NO rehab deal. Wow. This house had been recently rehabbed, clean and didn't need a thing! This was a homerun just due to the ease at which I added this property to my inventory! The spread wasn't great, in fact, I had a local hard money lender make up a story about being out of money because he thought the spread was too narrow and didn't want to lend on it. He wrongly assumed there was a significant rehab. (Being straight up with me was too hard, I guess.) I consider this a homerun because I bought this property, changed the locks, put out a sign and had it rented within two weeks. Mind you this is a beautiful well-built brick/block home in a great neighborhood. Cost to me…nothing. This house has one of my best cash flows month-to-month.
The point here is to give you an idea of what kinds of homeruns rehab real estate investors look for. But, here is a key point…
It's truly NOT worth my time, or your
Not many things can be as hard as having to declare yourself bankrupt, whether in a personal capacity or a business capacity. The Los Angeles bankruptcy system offers several ways of improving your situation after surviving bank.As a person or a business, filing bankruptcy is a big step in your financial life, in either circumstance it seems to demonstrate that you have no control over your financial state and by extension over your life. This is however something that is becoming a fact of life for a far greater number of people than most people would ever guess or even care to admit.
So, what is a rehab real estate investor's "homerun? "
Homeruns occur at the outer edge of what is typical. My homerun deals have occurred one of several ways.
- The spread is stellar. Let's say the spread is $45,000 and the rehab is a manageable $5-10,000.
- The spread is good, but the rehab is very light. Wham-bam, I'm looking for tenants within days of closing.
- The cost is exceptionally low for a given area. Sometimes the spread on paper will not be anything to get excited about, but the property has a huge lot, extra bedrooms, or is located an area that is in serious demand.
- There is NO rehab, and the spread is sufficient that I can buy it with none of my own money.
True story - I've only had one NO rehab deal. Wow. This house had been recently rehabbed, clean and didn't need a thing! This was a homerun just due to the ease at which I added this property to my inventory! The spread wasn't great, in fact, I had a local hard money lender make up a story about being out of money because he thought the spread was too narrow and didn't want to lend on it. He wrongly assumed there was a significant rehab. (Being straight up with me was too hard, I guess.) I consider this a homerun because I bought this property, changed the locks, put out a sign and had it rented within two weeks. Mind you this is a beautiful well-built brick/block home in a great neighborhood. Cost to me…nothing. This house has one of my best cash flows month-to-month.
The point here is to give you an idea of what kinds of homeruns rehab real estate investors look for. But, here is a key point…
It's truly NOT worth my time, or your
Key Elements To Building A BusinessWhen it comes to building a business, most people just start out doing anything that sounds like a good idea. They then find that building a business is not always as easy as it sounds.There are several key elements to building a business that if you follow and implement them, you will find building a business will be easier than if you don’t. Consider the following guidelines as a roadmap to creating and building a business that will be successful.Many people today complain about a wide variety of symptoms when they start building a busin
- There is NO rehab, and the spread is sufficient that I can buy it with none of my own money.
True story - I've only had one NO rehab deal. Wow. This house had been recently rehabbed, clean and didn't need a thing! This was a homerun just due to the ease at which I added this property to my inventory! The spread wasn't great, in fact, I had a local hard money lender make up a story about being out of money because he thought the spread was too narrow and didn't want to lend on it. He wrongly assumed there was a significant rehab. (Being straight up with me was too hard, I guess.) I consider this a homerun because I bought this property, changed the locks, put out a sign and had it rented within two weeks. Mind you this is a beautiful well-built brick/block home in a great neighborhood. Cost to me…nothing. This house has one of my best cash flows month-to-month.
The point here is to give you an idea of what kinds of homeruns rehab real estate investors look for. But, here is a key point…
It's truly NOT worth my time, or your
You keep a record of how much money is in your checking account. Chances are, you keep a running tally in the back of your check book and you balance that with the statement the bank sends you each month. As important as it is to know how much money you have available before you write a check, it is equally important to know your credit score and what is on your credit report. Not knowing these things could cost you money.A credit score helps predict how credit worthy you areMany factors go into determining your credit score including your bill-paying history, the number
The point here is to give you an idea of what kinds of homeruns rehab real estate investors look for. But, here is a key point…
It's truly NOT worth my time, or yours, to wait around for the homeruns. I firmly believe that these kinds of homerun deals come about by being an active investor. Rehabbers that keep 1-2 projects going at all times, get calls from wholesaler with great deals. Personally, I make the best buying decisions decisions with what I have among the properties brought to me when I am in my "buy mode." Some of these turn out to be homeruns, some don't.
If I waited around for only the homeruns:
- I would waste precious learning time. Since there is no substitute for experience, I want all I can get!
- I would lose money over the long run as a buy-and-hold investor. If I'm buying and rehabbing with little or none of my own money anyway, it doesn't make sense to wait around for homeruns if I can add properties to my inventory that fits my investment criteria. If you're in the buy and hold business, the important thing is how much property can be controlled with as little money as possible.
Question: Is it better to have $1,000,000 worth of property appreciating or $200,000?
Hitting a homerun in rehab real estate, and anything else, requires these two ingredients:
- You've GOT to be "in the game." By this I mean you have to have prepared in advance for your turn at bat. In the rehab business, this means you have enough knowledge to get started, you have a decided investment criteria, you have your money source lined up, and you are looking for property.
- You are "swinging." In the rehab business, this mean you are buying property, rehabbing, learning and turning. It's not enough to merely stay on the sidelines.
Let me say that again…
IT'S NOT ENOUGH TO MERELY STAY ON THE SIDELINES.
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