With any investment there is risk. Many people gamble on the stock market without good information. Savvy real estate investors research and use information to make good informed business decisions. By doing this, you can mitigate risk and control the outcome. Here are 10 ways to have control and find success.
- Get multiple opinions – Have other investors evaluate your deals.
- Talk to multiple agents – Agents are experts in areas and can provide tremendous information that can be useful in making decisions.
- Find and use the top agents – Call title for agent sales numbers and use the top listing and buyers agents in your zip codes.
- Get multiple rehab bids – Multiple rehab bids can save you money and improve quality of the rehab.
- Market aggressively – Use creative techniques to increase exposure such as price reductions, give free stuff like TVs, round robin auctions, etc.
- Talk to property managers – Property managers can give you the low down on rental demand and other useful information to make decisions.
- Have buyers approved by your lender – It is tough for some buyers to qualify these days. Anyone can get preapproved so confirm your buyer can close by having your lender approve them.
- Get backup offers – Escrows fall through so get backup offers just in case.
- Put your lease option buyers in a credit repair program – Putting your lease option buyers into credit repair programs can double the chance they execute the purchase contract from around 37% to 75%.
- Test first – Winging it is never a good idea. There are many ways to test first and often free. For example, when in escrow on a deal market the cross streets on craigslist to check on renter or buyer demand or to test a specific sales price or rent amount.
Hopefully some of these are helpful. Please share, any ways you mitigate risk and control your success?