The Fundamental Four F’s of Real Estate
- - First F: Find
Once a real estate investor has a desire and the financial capabilities to invest in real estate the first step is obviously finding a high-quality investment project. There will always be situations where a seller is motivated to sell a property at a great discount. Sometimes a property in serious disrepair is inherited by an individual who doesn't have the money, experience or desire to rehabilitate the home, and they would be ecstatic to find a real estate investor that would help them with their problem so they can get on with their life.
- - Second F: Fund
Once you have identified a good investment property that is in line with your investment goals and you're lucky enough to win the purchase contract, now you will need money to close. There are only three reliable methods to purchase distressed investment properties; cash, hard money/private financing, or a line of credit.
- - Third F: Fix
Most new investors think their job as a real estate investor is completed once they close on a property. The reality is that it has just begun. The remodeling phase of the investment process is where new investors are going to pick up the majority of the experience they will use in their future investments. The positive attitude that it's okay to make some mistakes is really what is going to set the scene for a real learning experience.
- - Fourth F: Finish
After the home has been completely remodeled and professionally cleaned, it's time to launch into the final marketing stage. Unless you are a licensed real estate agent or have a knack for grass roots marketing it's a good idea to find someone who is licensed to list the property on the MLS for sale or rent.
Real Estate Investing for beginners can easily be covered in four fundamental tenets: The Find, Funding, The Fix and The Big Finish - Getting it Sold!
Topics: Real Estate Investing, Realtor
Work cited: Kurt Carlton
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