7 Steps to Think About Before You Walk Into a Deal

Learning how to invest successfully in real estate requires you to understand a number of things.

For starters, you’ll have to know what your goals are and whether you have the finances to meet those goals.

In order to understand this, find out how much money you would like to invest in real estate while also making a list as to the people who can afford to finance this venture of yours.

If this list is about $0, then it’s time to forget about flipping and retailing. Instead, it’s a good idea to begin with foreclosures, where you can get a decent bargain or two.

Apart from that, here are 7 steps that should walk you into a deal:

#1: Location The location of any property should indicate what technique you should use. For ugly houses, try wholesale or retail and for nice ones, you can go with the Owner-financing, Lease-purchase and options methods.

#2: Real Estate Bargains Finding good bargains is key to being a successful real estate investor for the simple reason that the better the bargain the more profit you’ll make.

#3: Motivated Sellers Always remember to find motivated sellers for whom their property is the problem. They will, no doubt, make the real estate deals for you.

#4: Gathering Information Ensure that you gather information that will not only help you stay organized but also help you analyze a property in the best possible way. Forms such as a Property Inspection Sheet, Property Research Form, Repair Values sheet as well as an All Cash Offer worksheet.

#5: Contracts Make sure you hire an attorney to check contracts so that they are bulletproof. Avoid using generic forms found over the internet.

#6: Other People’s money There are a number of people who you can borrow money from such as friends, banks, Substitution of Collateral and Subordination Technique as well as other investors.

#7: Closing

Since you’re a buyer, you can pick a Title Company to close your real estate transaction which will check for any title defects. After this, they will close the deal and then send you title insurance.