Real Estate Investing

The real estate investment process

Apr 30

4foreclosuresBuying, Funding, Selling investment, investor, property, real estate, wholesale 6 Comments

A real estate investor typically must perform all of the following functions in order to complete a successful project:

• finding and negotiating the purchase of a bargain property
• funding the investment property quickly, with little or no money down
• fixing or rehabbing the property quickly with quality work at bargain prices
• renting (or selling) the property quickly at or near top market prices at minimal cost

Finding and funding the right property at the right price is by far the most difficult functions of the process to accomplish for most investors. These two activities are very difficult for full time seasoned investors and almost impossible for part time or beginning investors. In most cases part time and beginning investors literally do not have market access because of the difficultly in finding the right deals at the right price and then getting them financed.

Fixing and renting (or selling) are functions that can be accomplished effectively by most all investors if they are provided access to the necessary contacts and supplies. Successful fixing and renting requires items such as: a network of quality service providers, discount building materials, contract forms, marketing supplies, property management forms, prospective tenant background checks, educational materials, etc. In many cases we have found that part time and beginning investors actually do a better, more efficient job of fixing and renting that the full time investors. This often happens because of two primary reasons:

• the part time and beginning investors have little or no overhead in the process
• they can focus on one project at a time (put T-L-C into each project) as apposed to the full time investor that commonly is trying to manage multiple projects simultaneously.