| There is so much written about the huge benefits | | | | opportunities can be extremely tempting. Some |
| of real estate investing. If you are considering it | | | | people in fact find rehab deals an excellent |
| for the first time, you may well ask if it is as | | | | method of cash generation. But these projects do |
| profitable as it is made out to be. You may also | | | | tie up your capital for several months and take a |
| ask if it is as easy as is often claimed, especially | | | | huge amount of your time and energy before the |
| for the first-timer. | | | | profit comes. So some people feel rehab is not |
| Well, the answer to the first question is yes - | | | | for them. But if you want to try it, do make sure |
| potentially, at least. The answer to the second is | | | | (a) that you don't over-pay for the property in |
| probably no, in the sense that first-timers don't | | | | the first place, and (b) that you factor in ALL the |
| generally walk straight in and make a killing. But | | | | costs. That means, not just the money cost of |
| you CAN make it easier for yourself if you | | | | the physical rehab but the costs in time, energy |
| remember these pieces of advice. | | | | etc. |
| 1. Don't be scared of making offers to sellers. It is | | | | 4. Never feel trapped into finalizing a deal. If you |
| easy when you are just starting out to be so | | | | find a transaction has hidden pitfalls you didn't |
| afraid of rejection that it stops you making the | | | | know about, don't feel you "have to" complete |
| offer at all. Especially if it is a "no money down" | | | | the deal to avoid losing money you have already |
| offer. If you ask and get a "no", you can move | | | | put in. Always retain control and decision power. |
| on to the next project - it hasn't cost you | | | | 5. Don't feel uncomfortable about making money |
| anything. You can be pleasantly surprised at how | | | | from other people. This is not "ill-gotten gains" or |
| often you DON'T get a "no". But if you DON'T | | | | dirty money, it is money you have earned |
| ask, you certainly can't get a "yes"! | | | | honestly and legally. If you have problems with |
| 2. Recognize the importance of seller motivation. | | | | this, it will prevent you from really profiting from |
| This can be your prime factor in getting a good | | | | real estate investment. |
| deal. So it could be worth making it your number | | | | 6. Don't feel held back from real estate |
| one factor in searching for properties, with the | | | | investment because you don't know it all. You |
| condition of the property being secondary. But | | | | never will "know it all", but you must get started |
| beware of seller ads that state "motivated seller" | | | | and recognize that there are many things you can |
| up front - this could be just a means of attracting | | | | only learn as you go. |
| interest. You need to do your own research in | | | | There is nothing magic about successful real |
| finding out the seller's situation - for instance if | | | | estate investing. There is no reason why YOU |
| they have already bought a property and urgently | | | | shouldn't succeed, any more or less than anyone |
| need a quick sale. | | | | else. If you remember these bits of advice, it will |
| 3. Be careful of "rehab". Apparent rehab | | | | make it just that much easier. |