WeSellHomes2Fix.com Blog - First thing First
This blog is started to educate people in real estate investing. Much of it will be targeted to our local market in Philadelphia. It will come from experience and will have no B.S.
Topic 1
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The main rule of real estate investing is to buy right.
- All the fancy dancy ways of acquiring a property do not matter unless you are buying at a deep discount. I dont care how creative you are trying to get with your buying, but it doesnt matter if it is not at the right price. The right price in the Philadelphia market is no more than 70% ARV. Learn how to comp out properties and dont force a deal. We get 100 leads/ week to find 10-12 deals per month. You do the math. If we purchased like the local failed investor at 80-90% ARV, we would be able to buy every property on the table and end up broke in 2 months. If you dont believe me, find out what your local big buyers buy at. They arent big buyers by buying at top prices, trust me.
Feel free to also folllow my other blog at http://phillyrei.blogspot.com/
Comments (1)
Hi Ian, great post, so true, hard to make a living flipping properties if you dont buy them right. I have never made money rehabbing or selling property. In fact out of the deals we have done, the only ones that made money were the ones we bought for max. of 70% of VAR (ARV?). My rule was only to buy stuff no one knew about or no one wanted, other wise the price was bid up to retail and there is too much market risk and rehab risk along with carry and marketing costs to make a profit. I would sure enjoy learning about how you have created 400 leads per week to get your deal flow? thanks jeffrey gordong
Jeffrey Gordon, about 16 years ago