So you’re looking for a good investment…
These days, many people are looking to get into the exciting world of Fix and Flip properties. We’ve all seen the T.V. shows that make it look so easy to purchase a property, fix it up quickly and cash out for a big pay day. While these programs make for a good watch, the truth is the process can be much more complicated and extensive than you might realize. Even the plethora of seminars you might have come across often miss the mark about the how things are really done and how things play out (be aware, many of these seminars are just introductory teasers attempting you to enroll in hastily compiled courses for rather ridiculous fees). Getting into real estate investment requires not only a good knowledge base, but the right agent and team to guide you.
What many would-be-investors don’t realize is that the world of property investment is actually quite cut throat. One of the most important aspects of being successful with real estate investment (whether it’s a fix and flip…or hold and rent) is pairing up with an agent who is familiar with those type of transactions…who is aggressive enough to handle them properly and to push your offer through…who knows how to calculate your repair costs, carrying costs and other fees as to ensure you turn a profit…and most importantly, and agent who can get up and go when that new great possibility comes onto the market!
Matt and his team are not only well versed in dealing with foreclosure, short sale and TLC properties for investment, but our parent brokerage of Progressive Realty Group USA happens to be one of the leading foreclosure brokers on Long Island and within the 5 boroughs (and even elsewhere in New York)! We have a passion for investment properties and maintain ongoing and longstanding relationships with our investor clients. We’re also happy to correctly teach and guide anyone looking to get involved in the world of real estate investment and will see you through the entire process from start to finish.
Consider these checklist items and preparation tasks if you’re going to be embarking on the journey of real estate investment; just a few of the many things you will need to know:
- Figure out your funding!
With most foreclosure properties…or even properties in need of some TLC…a mortgage is not something you will be able to purchase the property with. Often these type of properties are missing the necessary requirements to be mortgage-able (they may be lacking utilities, have open of unfiled permits, etc.). This results in the need for a cash or 203k loan (a 203k loan allows you to borrow money for repairs but often this will become a drawn out repair process) purchase of some sort. With the type of funding you will secure, you’ll also be able to narrow down what you can or cannot…should or shouldn’t purchase as an investment.
- Make yourself available!
One of the biggest mistakes for any would-be investor is not maintaining a level of flexibility in their schedule to view a property. The good ones come and go quickly…and if you don’t get there in time, they will be long gone. Always remember, you’re not the only one who may have interest in a specific property…and along with that, you’re not the only one with the same idea. It’s imperative to get their quickly and get your offer in; this also means you need to have your funding sources in order.
If your agent doesn’t move quickly…you’re going to lose out. This is one of the areas where Matt and the ML Property Sales Team excel – we run at that moment to get you into that property!
- Get in the know!
If you are unfamiliar with the repair costs on a property, or even the repair or building process, have your contractor come with you! While Matt and his team are experienced with the costs involving in rehabbing a property, and can offer general figures on what it might take, it’s always important to have a contractor involved. A contractor will be able to give you more exact costs to bring that property back to life and to an easily sellable state. Likewise, we can’t speak on behalf of your contractor and what he or she may charge.
One of the benefits of teaming up with us is that you get…our team! We have spent the time to develop solid and trusted relationships with recommended vendors including contractors, landscapers, lenders, attorneys and anyone else who can play a role in the sale of a home.
- Be realistic!
Forget the things you may have seen on television or heard about in one of these get-rich-quick real estate seminars! These people will lead you to think that every investment property results in hundreds or thousands of dollars in profit with little work involved; just replace a water tank or slap on some paint and you’re good to go…wrong! In reality, earning 20…30…or even $40,000 on a investment property should be considered a good day. Sure, there are times when your payout will be much, much higher…but don’t always expect that to happen.
It takes the skilled and experience eyes such as those of our talented team members to identify true investment potential!
If you’re considering your first investment property…or are looking to work with a new agent to move your real estate investment business forward, contact us immediately for a list of potential properties! We will be happy to meet with you to discuss a successful plan of action.