Orange County Real Estate Investors say, the most common queries among new Real Estate Investors is, the way to close their first rehab deal?
Although the process of flipping houses is straightforward, getting to the finish is often more difficult than many Real Estate Investors will anticipate.
If you are looking to shut your first rehab deal or have an extensive Real Estate Buying portfolio, there are a few basic measures to follow.
Executing these measures will go a very long way in determining strength.
Finding Deals – Orange County Real Estate Investors
Orange County Real Estate Investors say, everything may be in place but if you don’t have deals to perform on you will not get really in Real Estate Investing.
Like many other business’ Real Estate Purchasing is a statistics game.
Sometimes Real Estate Investors look at a dozen different properties to find that you that they’d like.
Although, it’s important to stay disciplined and wait for the ideal property to invest.
To find a deal you need many different sources as you can, to get the ball rolling so to speak.
Craigslist, is sometimes great or simply by reading the local newspaper.
Investment club meetings and local media groups are great sources for potential deals.
Orange County Real Estate Investors say, the first thing to do when you find a property you see value in is to estimate the cost of what the repairs will be.
Rehab deals only make sense if you can acquire them at a discounted price.
To get the deepest discounts the property often demands a great deal of work.
Real Estate Investors try to get an idea early on of how much capital is going to be placed into the property as you run amounts.
In order to accomplish this you will need to take your time and evaluate every square inch of the property.
Any supervision on the foundation or the plumbing could lead to thousands of dollars in repairs that will have a whole impact on your bottom line.
Current conditions of the property is not the most important factor.
Almost anything in the property can be replaced, fixed or modified.
After Repair Value
Figuring out how much value you can gain based on the improvements you make can be a little difficult to figure out sometimes.
A great way to gain an idea is by simply taking a peek at recent comparable sales.
Properties with similar dimensions should be something to consider, design and square footage as near the subject property as possible is suggested.
Comparable’s must have been shut in a 90 day interval.
The amenities should be something of a consideration also.
Make An Offer
After due diligence in the property is finished, it is time to make an offer. It’s never really known what a seller will accept.
A fine line has to be walked between offering an amount that is employed for yourself while at the same time never upsetting the seller.
Before attaching a few to the contract you ought to be ready to justify that initial amount.
That can be done by either the amount of work that is required or the comparable sales in that area.
Seasoned Real Estate Investors will inform you to not be afraid to make the offers that you would like.
You may lose a deal or 2 by offering too low but think of the alternative.
Real Estate Investors understand that many offers will not be accepted.
This is part of the process when getting a Real Estate Investor.
Most offers just accepted are the ones you make.
There happens to be a lot of new Real Estate Investors closing rehabs every single day.