Over the last two weeks, events have unfolded that have reminded me of an important truism in real estate investing.

“Always have a back-up!”

This was played out in dramatic form with a deal I’m closing tomorrow.  A wholesaler friend of mine brought me this great little three bedroom one bath home tucked away on a dead end street where pride in ownership is alive and well.  The electric and plumbing is already upgraded and this rehab is cosmetic with the exception of adding a bath.

I’m buying it for $52,500 and the as-repaired appraisal came in at $86,000.  Not a bad spread.  This is the kind of deal I like!

When I called my hard money broker, she was delighted and we moved quickly toward closing.  I was only waiting on the closing time… (more…)

What is the primary reason for success most people have that seems to elude unsuccessful people? Goal setting is the primary reason for success. Lack of proper planning is the number one reason for failure. Proper goal setting involves setting a business plan in place for your life. Too many people this doesn’t sound fun or sounds tedious. In practice though, goal setters have more time freedom, more money, and more success in all areas of their lives than those who don’t. Well it’s no different with real estate investing.

Real Estate Investing must be treated as a business and it requires planning that anyone can do. Much like an airplane pilot who goes through a pre-flight checklist, the real estate investor must go through many steps for every real estate deal. You must market to find the deal, do your research on the property to establish a value, have your contracts ready, make your offer, schedule a closing, have title work done, prepare your financing, get property insurance, etc. The reason the doers make money is because so many people aren’t ready to make money. Real estate investing seems like pie in the sky until you put your plan down on paper and it starts to crystallize. The planning process itself should give you renewed energy. (more…)