How to Get Started as a Real Estate Investor
A Smart Investor is a Savvy Investor!
– Speak to realtors that are familiar with the area you are interested investing in and start forging lasting relationships.
– Decide whether you want to rent or resale. Some neighborhoods are better for rent than resale and vise-versa.
– Good deals can be gone within hours of hitting the market so you need to identify the deals from the duds fast. The more properties you view the more you will learn.
– Membership clubs for investors are a good source of networking and an excellent way to get first-hand education.
– Ask questions and take notes!
– Start building a team – Lender, Real Estate Agent, Contractor, Insurance Agent, etc.
– Crunch numbers and make offers, but don’t force the numbers. If they don’t work then move on. Remember, you make your money on the purchase.
– Don’t get caught up in bidding wars or fast talkers… stand your ground. It’s all about the numbers so don’t get emotionally attached or intimidated into making a purchase.
What to do When Your Offer has Been Accepted
Contact Finishing Touches!
– Call Finishing Touches as soon as your offer is accepted to request an estimate.
– Contact your inspector and get a copy of the inspection report to us for review.
– Call your lender to confirm your budget, ARV (After Repaired Value), and possible closing date.
– Make sure utilities are turned on during inspections or as soon as closing happens.
– Review your written estimate and make revisions if needed.
– Schedule a pre-construction walk with your project manager for any last minute revisions to the scope of work (SOW).
– Confirm final revisions with the office and sign off on the estimate.
Estimate Approved and Ready to Start Work
Understanding the Rehab Process
– Once your signed estimate has been processed by our office, we will set your project up on a cloud so whether you are at home in your pj’s or in a café on the other side of the world you can see the progress being made on your investment. Pictures, videos, message boards and your job calendar will keep you informed of the daily progress.
– During the rehab, you will want to keep your property management company or real estate agent abreast of the completion date and final stages of the rehab so they can start preparing for a renter or a buyer. We will coordinate directly with your property management agent on the final stages of the rehab and will help facilitate making sure the property move-in ready.
– Communicate to your lender about your exit strategy. What will they need for the Refi process or the move from Hard Money to a conventional mortgage?
Finishing Touches – because it’s not your house, it’s your investment.