I have often said that flipping houses is a roller coaster ride. Its not a job for the faint of heart. Recently I came up with a new analogy. If you want to learn How to Invest in Real Estate, how to, “flip the house,” as I say – you must first understand that flipping is like a shaky, wobbly, 3-legged chair. Its fragile, baby – so be careful how you sit.
Even though it seems every one and there mother is now investing in real estate (let’s face it the barrier to entry is pretty low), there are three critical variables to real estate success. Miss any one of the three and your little wobbly chair will fall over faster than Snookie after a night of partying down at the Jersey Shore.
Real estate investing is a serious business played with serious money. You owe it to yourself to make sure that you stand on solid footing before you venture into a deal. Wanna know how to get it right? Watch this video below.
(Shameless alert: THIS MIGHT BE MY BEST VIDEO EVER!)
Well, here it is – the next installment of “home extreme makeover” by Craig Fuhr. And yes, a little ‘ode to AC/DC. Who do you love more, Bon Scott “Highway to Hell, or the other guy who sand on all the rest of AC/DC’s albums?
Truth be told, I’ve been laying low since selling my last two rehabs in December and January. Not gonna lie, sometimes just sitting back and listening as The Lord prepares you fo your next move is a good thing. You can often find great solace and clarity in those times. When you’re running at the speed of light sometimes the world can get you down in a hurry, sometimes you forget all the great and wondrous things about entrepreneurship.
But after the listening and waiting for your next move, after getting all-spiritually centered, you got’s to get back to “makin’ that money.” When my phone rang on this deal, I knew almost instantly that it was a deal I had to have. That was in February. We just closed today… on April 1st. Man – there was some HAIR on this one! The wholesaler got his fee on this deal!
HOUSE BEFORE AND AFTER.
Without further adieu, I give you my latest and soon to be greatest rehab: Rolling Thunder! Stay tuned, its gonna be fun.
You’re all wet behind the ears “and all what not,” and new to the real estate investment game, and you’re probably wondering what are the typical rookie real estate investor mistakes? What you should really be asking is, “How can I avoid making those mistakes?” In your defense, you need to recognize (you betta recognize) the mistakes first before you can avoid them, and you need a crash course on goal setting. So here we go….
Mistake #1: How to Be A Real Estate Investor. The Honeymoon Phase.
When you first start out, you’re all full of piss and vinegar and newbie dreams, ready to rock the real estate investment world, but as with all things that start out hot and heavy, the fire quickly burns out and passion fades into the sunset like Mel Gibson’s career. Heck, most quit before they even figure out how to be a real estate investor.
So, how can you avoid the burnout? Lay off the wacky tobacky (for starters), but more appropriately, set short-term goals for yourself over the long-term. That may sound like an oxymoron, but here’s the skinny; know your long-term goals, but then break them down into 90-day chunks that you easily measure, analyze, and extract valuable lessons from. Shorter term goals are more achievable and foreseeable, so you’ll stay on track and charged up to continue striving for success.
Mistake #2: Analysis Paralysis. Obsessive Compulsive Analysis.
We’ve all got a lil’ “OCD”, which is no “BFD”, but if you spend more time analyzing a deal than checking out properties, you’ve got issues. If you have to smack it up, flip it, and rub it down, it ain’t a good deal dude, so move on with your life, and spend your time looking at potential properties. You’re in the stage we seasoned pro’s call; Analysis Paralysis. My good buddy, Steve Cook once told me, “You can’t steal houses in slow motion.”
Here’s the key; create “good deal” guidelines, and stick to them. If your deal doesn’t meet those guidelines, then it’s hasta la bye bye baby. Simple stupid, but take it from me, your real estate coach, goal setting will help you avoid the endless cycle of unproductive obsessive analysis.
Mistake #3: Going It Alone. Get a Real Estate Coach.
A good deal isn’t gonna fall in your lap like your girl at the strip joint. You create your own destiny, but not without some sound guidance. This market does not reward mistakes. Ok, it’s not rocket science. You gotta bust your ass, focus like a laser on your market, hone your deal spotting skills, and surround yourself with solid, knowledgeable people. Seriously, if you don’t have a real estate coach in this market; like Craig Fuhr – you’re setting yourself up for a short ride on the dead-end bus. Set your team up right and eventually, The Good Karma Gods will give you the wink and pinch on the ass that you deserve.
Unless you wore a helmet on the bus to school, the first rule is – know your market – should be obvious, right? Study your marketplace and what other investors, homeowners, buyers, and sellers are doing. Invest in your own backyard. Its probably what you know best, right? Not every vacant house is a winner. Don’t waste your time on “stupid,” houses. Too small, too main-drag, too ugly, too fringe does not work in this market.
Create an effective marketing campaign that brands you as a stand-out to drive leads and a marketing plan to secure long-term success. Remember, the typical response rate is 25 to 1, so don’t piss and moan when you get less than a handful of prospects.
I realize some of you may not have a lot of money to spend on marketing so here’s what: Spend what you can but spend it consistently. Pick a marketing niche’ and ride that ‘muv till the wheels fall off. If it’s working. Don’t change it. If you’re not getting the response you’d like – start testing new messages. Tweak. Don’t overhaul. And most of all, BE DIFFERENT!
Here’s a critical error most real estate committed by newbies: making business cards, establishing an LLC, and designing logos is NOT results. Its just action. There’s a big difference between action and results. Action doesn’t fatten your bank account, results do!
Finally, you may be all wide-eyed and keyed up for the potential deal like Justin when he saw Janet’s boob at Super Bowl, but keep the seller’s vision in mind, and look at the home from their perspective. Always remember however, that you set the home price, not the seller.
Make offers, people. No offers = no deals.
Mel Brooks once said, “As Long as the World is Spinning, We’re Gonna Be Dizzy & We’re Gonna Make Mistakes.” True dat Mel, but why not avoid these mistakes altogether.
How do you read this? Maybe I’m just an eternal optimist, but damn this sounds like “blood in the water,” baiting the feeding frenzy. And guess who’s a hungry shark?
Lil ole’ me!
Check it out people. Think the banks don’t have a mess of inventory that they’re sitting on? Think again. If you’re not in the game, you better get in the game – because there may never be a better time to profit from real estate.
Foreclosure activity slowed in first half of 2011
By ALEX VEIGA, AP Real Estate Writer – Thu Jul 14, 12:07 am ET
LOS ANGELES – The number of homes taken back by lenders in the first half of this year fell 30 percent compared with the same 2010 period, the result of delays in foreclosure processing that threaten to stall a U.S. housing recovery.
Banks seized 421,212 homes in the first six months of the year, down from 529,633 between January and June last year, foreclosure listing firm RealtyTrac Inc. said Thursday.
The decline reflects lenders taking longer to move against homeowners who have fallen behind on their mortgage payments. The banks are working through foreclosure [read the rest of the story here]