Getting deals done quickly is something that the gurus push and the newbie real estate investors eat up. Unfortunately, too many people rush into investing and start their investing unprepared.
With that in mind, I wanted to share some great feedback from some of our forum members on a topic discussing quick deals.
1) Do the deals with the best return on investment. You’ll grow fastest by getting the best return on your investment and that comes from the best deals.
2) time is money. A quick deal with a modest profit may be a better return on your time/investment that a deal that makes more money but takes a year to do.
3) time is money part 2, don’t be afraid to spend money to hire others so you can spend you time doing what you do best.
4) This is a team sport. Get people to help you, Don’t try to do this by yourself. Work with the best contractors, attorneys, RE agents etc that you can find.
To increase speed and efficiency, treat investing like a business. Talk to people and teach them how to bring you deals that meet your needs. Understand the value of using other peoples skills to support your business. Learn to lead. Read business and leadership books, not just REI books. Meet lots and lots of people. The more people you know that know that you are interested in x type of property, the more deals will fall in your lap. I know someone who had a mailman bring him a deal.
If you are interested in the mechanics of doing a deal like paperwork and such, talk to an attorney familiar with the contract and RE law in your area. Guru courses may have forms and such, but be careful using them without having your local attorney review them.
There is no canned formula for you to make 10,000/mo in cash flow in 3 months, you have to create the formula for yourself. What works for one person can’t work for another due to your motivation, your knowledge, your goals, your focus. You need to create your own path to success. Others can support your journey, but until you realize that there is no magic formula, you will be discouraged. Success in any goal is achieved by knowledge, luck and hard work, the less you have of one the more you need of the other 2, so you might as well focus on the 2 that you have control of.
There are multiple pieces to the real estate puzzle so, work it from all angles.
1. Locate & Negotiate. (As you listed.)
2. Purchase Contract.
5. Exit Strategy: Sale/Rent/Lease Option
There are sub-categories in each step.
The order of the process can be altered to each deal. Mix and match. Repeat.
Start a buyer’s list so that you have potential to sell the property quickly once you have closed on a good deal.
Another option is to partner with another investor to have funds available quickly for good deals.
Research online auctions for deals that are pennies on the dollar.
And, read and learn.
– Becky Burt
For more great advice on getting your real estate investing career going, read some of our starting out investing articles.