How To Identify Profitable Deals For Real Estate Investing

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How To Identify Profitable Deals For Real Estate Investing
Words: 506 | Date: Fri, 30 Jul 2010

Successful real estate investing demands you acquire profitable deals regardless of your business model.
The following tips will help you weed out bad deals and focus only on money makers.
1) Market Value
You must have a property market value before you can buy it. When I buy houses, I prefer to work with conservative market value to be safe.

The county records market value of the property is a good indicator of market value. It is often lower than normal comps in the area. However in a depressed real estate market, house prices can be affected by foreclosures in local area. If you do not have access to your local MLS, it would be advisable to team up with a local realtor who can run comps for you from time to time.

2) Repair Estimates
Repair is an integral part of buying and selling houses. You must reliably estimate repairs quickly without getting too detailed. Once you get used to looking at houses, you can be in and out of a property in 5 to 10 minutes with an estimate of the repairs required.

I try to work with higher repair estimates to stay safe.

3) Mortgage Balance
You cannot make an offer on the property unless you know the mortgage balance. If your offer cannot pay off the mortgage and leave a profit for you, then you may be better off looking for another deal.

If a seller cannot provide mortgage information, they are not motivated enough to sell their house to an investor.

4) Asking Price
If a seller wants full market value for their house, they are not motivated enough for you. Unless they can allow a margin for profit, you may be better off looking for the next deal.

Sometimes, explaining your numbers to a motivated seller may result in them accepting a rejected offer once they understand how you work.

5) Is It Vacant?
This indicates how motivated the seller is. Sellers who make more than one payment will want to sell fast. It also means you can take ownership of the house as soon as you buy it.

How do you receive this information?
A good real estate investor website is the easiest way to receive this information. A good real estate investor website will definitely help you receive this information. The website should serve to convince them you are the best person to buy their property and collect the information you need right on the website.

The form should collect as little information as possible, but just enough to know whether it is a deal or not.

The less information you request the more people are likely to respond via your website. This will be a big time saver because you will only talk to motivated sellers whose houses you can buy.

You can then collect more information once you talk to them.
Simon Macharia is a real estate investor in Dallas, Texas. His business is run from a real estate investor website that pre-educates motivated sellers delivering pre-screened and pre-negotiated deals. Click here to see how to pre-screen motivated sellers hands-off.

Article Source: Article Directory | Author simon87 | Cheap WebHosting

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