AVOIDING BAD DEALS If you are flipping, it is crucially important to find and asses properties in the right location, with either a high rental demand or sale ability. Experts can help you assess the property by using current and future projected market data, a proforma, and specific strategies. You will lose a lot of money if you buy in the wrong location and use incorrect comparables. Also, not having a reliable contractor to give you an accurate bid for the renovations prior to purchase can really hurt you if your budget is off. This is why wholesalers or fix-and- flippers should learn how to roughly budget renovation costs. Real estate investing can demand a lot of work —part time or full time — and this is particularly true when you have multiple properties already. Here are a few tips to do it effectively: FIND THE RIGHT NICHE Look into a strategy that has a more hands-free approach. It can get hard to choose from the vast array of real estate strategies out there. You only have a limited amount of time to dedicate, so look into one what works for you and
stick to it. The more you familiarize and master that particular niche, the more time you’ll have to produce results. And, you’ll be surprised how little time that will take. GENERATE LEADS Focusing on lead generation can score you with the best deals in the real estate industry. Dedicate at least a couple hours a day, or even 20 hours a week to marketing your business and generating leads. Just a reminder, that not all good leads convert into successful deals. Research and get suggestions for effective lead generation programs that can be a source of qualified leads and a lot of data that meets your business criteria. EXPAND YOUR NETWORK You need to have a network of professionals in real estate. Investing in this industry is a “people” business. You need to work with different types of people such as buyers, sellers, loan officers, mortgage brokers, appraisers, etc. Each person can provide a link for you to build a strong network.
FIND A REPUTABLE MENTOR Even the best investors were once under the tutelage of a mentor. Joining a real estate team or finding a partner who does investments full time can provide insight and many benefits. Knowing the right time to buy or sell, managing any risks that may come along, and increasing chances to close the deal are all part of their daily routine. A reputable mentor is key to a successful start, even if you’re only in the business part time. You CAN find success as a part-time real estate investor, and then you decide how much time you want to invest. •
Michael Jordan is the founder and President of Strategy Properties in Michigan. Michael started his first company at the age of 19, while still a student-athlete on a full scholarship to
play basketball at the University of Detroit Mercy. Following two years of NCAA tournament play, Michael transferred to the University of Michigan to pursue a degree in Business Management. He founded Strategy Properties, Inc. in 2003 (under the name Jordan Ventures, Inc.) with a primary focus on the construction of new homes throughout Wayne County, Michigan. Since then, Strategy Properties has become a key provider of rental homes in Detroit and Southeast Michigan.
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