What’s the best advice you will ever get for the secret to real estate investing? Find 1st time investors ask what they should consider when planning their first real estate investment: should I buy a single family house, a duplex or a multi-unit? Should I buy in low income or middle income neighborhoods? Should I only buy concrete block houses and avoid frame/wood houses?
There are answers for each of those questions, and the answer may change depending on the investor’s goal, but one thing never changes: the most important factor, no matter what you buy, is that you buy it cheap and valuable!
When people are getting involved in real estate investing, they frequently get their heart set on one particular type of house. Maybe the house reminds them of a house they grew up in? Maybe the house is outdated, but still has charm and they want to shine it up? It’s important to remember that the secret to Real Estate Investing is it’s about the numbers, not a feeling you get about a house, and the numbers start the day you submit your first offer!
Knowing this, the best thing you can do is make offers on multiple properties. Instead of getting your heart set on a particular house, get your heart set on wholesale prices. Look at a LOT of houses to get an idea of what the market value is, then start putting your offers in writing. As they say “the person who negotiates best is the one who cares least”. If you are making offers on lots of houses, you will only be interested in the ones where the seller’s counteroffer is within range of where you want to buy it.
It’s also important to understand that “cheap” doesn’t mean “free”. Don’t waste your time by making ridiculously lowball offers on houses. You will aggravate both the realtors and the banks/sellers, as well as waste your own time. Instead, do your research, figure out where the wholesale properties are in your market, then make a lot of wholesale offers!
Realnet has the buying and selling of cheap houses down to a science! Our team of licensed realtors has 40 plus years of experience and negotiates with banks every day to help you buy the cheap house you’ve been looking for.
One of the secrets to Real Estate Investing is when you buy a house cheap, you can have a lot of confidence that your investment will be successful. You still need to pinch pennies rehabbing the house, making it a strong structure, but not over improved. When it comes time to rent out or sell the house, you will see big profits, all because you negotiated best, by caring the least, and you bought a cheap house!!