Real Estate Investing In Sacramento County Is Easy!
I know a lot of Real Estate Investors in Sacramento. Not all of them are always making money. Many get hammered in the construction and several others simply overbuy. Many Beginning Investors make the huge mistake of holding out for the perfect offer. So why are some of my Investor friends more successful than others?
I know many Beginning Investors have initial problems acquiring funding for projects. Often times it?s this very struggle that prevents many would be investors from being involved. However once the funding is solved up comes the next issue. There is a fine line that needs to be walked. It?s important to turn the inventory and not actually hold properties. This is of course assuming you?re flipping.
We are a successful team of Real Estate Investors. We have been investing in Sacramento for the last 3 years with great success. Our track record is impressive and our purchasing investors are loyal. We have found that our products sell quickly. Here are a few tips that have helped carve our success.
1. Don?t fight construction.
2. Don?t be greedy.
3. Don?t under estimate how much work this is.
DON?T FIGHT CONSTRUCTION
Most Real Estate Investors are not contractors. Most of the people I know who invest are certainly knowledgeable but far from experts in construction. This means that at the onset we are going to be relying on someones expertise. For most starting out this is where the dangerous stuff happens.
Construction costs are always on the rise. It seems no matter what the budget is initially, it changes. So how is a new investor to keep hold of this animal? Find people who are already running crews and hire them.
Yes believe it or not there are entire teams of people out there who do nothing but construction for property flippers. Eventually you will create your own team but in the beginning it?s important to get your costs in line. Working with an experienced team is a great way to quickly establish what your construction costs will be.
DON?T BE GREEDY. Sounds simple right? Simple isn?t always easy. Once the numbers start adding up it?s easy to get greedy?DON?T DO IT.
If everyone in the deal makes a fair profit then everyone returns for another. However if you screw your construction crews they will screw you back. If you start giving slimmer deals so you can make more up front then the investors will stop purchasing. If you don?t pay your people properly then someone else will.
Last year we did well north of 120 houses. It is impossible to do that type of volume and screw people. It?s vital that your system is built on honesty and is done so brick by brick. Please make sure all your partners are also honest and understand the value of opportunity cost.
This is a particularly sensitive one for me since I have seen other investors break this rule. I know a ton of greedy investors. However it?s important I know them since they are the ones who want my deals! An investor who isn?t somewhat greedy is an animal I have yet to find.
If you are a greedy investor that?s ok! Just don?t let that spill into the operations side of things IE.. not paying construction etc.. Whenever I bring this up everyone always goes ?yeah ,yeah, not me?. Yet I have seen it time and time again. I hear about it in the grapevine constantly. So and so didn?t pay on time, didn?t pay right, didn?t pay at all.
Last but not least. THIS IS A LOT OF WORK. The due diligence is where a lot of time is spent. Since this is early in the process it is the most frustrating part. It is always funner to work closer to the money!
However spending a lot of time making sure the investment is sound is the cornerstone of success. If you spend your time focused on making sure your investments are solid you will be successful. Remember it?s important we do everything we can to reduce risk. The time spent reducing risk will be rewarded with profit when the deals sell.
As usual there will be the naysayers and the critics. Make it a SmartFlip from the start.
Source: http://sacramentoflips.com/flipping-rants/real-estate-investing-in-sacramento-county-is-easy.htm
gardasil gardasil usnews new york special election windows 8 2pac kabul
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.