BUILDING WEALTH FROM THE FOUNDATION OF REAL ESTATE INVESTING
by Michael Jordan
ow long does it take to get rich in real estate? This question is always on the mind of investors,
#2 FIXAND FLIP You don’t have to be an avid real estate investor to know what fix and flip is. Anyone who has cable and passed by HGTV has a basic idea of what it is. You buy a house below the average market value, renovate it, and sell for a profit! This is one of the most widely used real estate investment strategies used around the country. Keys to fix and flip investing success: • Prepare yourself by understanding how to locate under- market valued properties in the right locations. • Understand values — make sure you are comparing apples to apples and going with the highest comp when doing our due diligence as a conservative approach. • Align yourself with multiple capable and competitively priced renovation contractors to not only give you a bid prior to purchasing the home, but also to deliver as agreed upon.
both seasoned and newbies alike. This topic is always up for debate no matter how you look at it, as wealth is measured differently by every individual. To help you get a clear idea of what to expect, here are a few factors you need to know when building wealth in the real estate industry. #1 WHOLESALING This is the easiest point of entry for the majority of the investors, as it requires the least amount of capital. You find a property owner who wants to sell and find a buyer for that property on “as is” condition without the fixing part to try and get the market value higher. After the property has been sold, you’ll get a cut on the sale. Basically, you are the intermediary that builds a buyers list to locate undervalued properties using a multi- pronged approach. This relies heavily on how good and how broad your real estate network is.
32 | think realty magazine :: april 2020
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