Learning to See Real Estate Opportunities
No matter where you live or what your budget is, there is real estate strategy that will work for your scenario. There are endless ways to profit in real estate and learning how to spot great real estate opportunities can be a profitable skill to learn.
One of the most attractive things about real estate investing is, each deal can be customized. This means you can usually find a strategy that makes all parties involved happy.
One of the best ways to find real estate opportunities in your area is a technique called “bird dogging”. This consists of you driving or walking the area and gathering information on the homes for sale.
Once you have gathered this info, you are ready to start determining the market value of the area. There are a number of ways to this. First, you are going to look at the price of the properties you have gathered information on. Next, you are going to see how long each property has been on the market for.
This will help you to see which properties are overpriced. If a house has been on the market for a year, with repeated price drops, you know the market value is less than the property’s asking price.
Now that you know what is for sale in your area, you are ready to start researching what has already sold. You should look for homes comparable to the ones you are considering.
These comparables will give you another piece of the puzzle. By studying what properties are selling for at the current time vs. what they sold for previously, you can get a feel for the overall market trend in the area.
For example, you find a property that is selling for $100,000. By checking the comparables in the area, you can see if this property is a good value. If similar properties sold for $110,000 a year earlier, you must decide whether the property is listed below market value or the market value of homes in the area is declining.
You can do this by examining many comparables and seeing how they compare to the current price of properties. The last thing you want to do is to buy a home in a market that is about to bust. Once you have made a final determination on the market, you are ready to move forward with your investment.
The internet is full of stories of people making tens of thousands of dollars in days via real estate. This is possible, once you have trained your mind to recognize real estate opportunities. Many people are under the impression that you need good credit or large amounts of money to get involved in real estate investing.
Nothing could be further from the truth. Many real estate strategies require no money to start. Investing time in your real estate knowledge is going to pay off exponentially.
One of the keys to spotting profitable real estate opportunities is, knowing how to determine how motivated the seller is to get rid of the property. There are many scenarios when people are suffering because of an unwanted property.
People inherit properties that they do not want all the time. Another common example of this scenario is, someone is unable to pay for their home and they are worried about damaging their credit and making it harder for them to get a new home in the future.
In this type of situation, the seller is extremely motivated. This motivation will allow you to incorporate a number of different strategies.
It is important to remember that, to many people, their credit is more important than their current home. Owning a home means having a commitment.
Not everyone has or wants this added workload in their life. By learning how to tell who is a motivated seller, you will open the door to many profitable real estate opportunities.
If you have great credit and access to many funds, you are going to be able to follow a more traditional real estate investment strategy. By knowing your seller’s motivational level, you can determine how low your offer for a property can be.
A motivated seller is going to consider more options than one who is uncertain about selling their property. For example, you are looking at a property that is listed for $100,000. The owner inherited the property from his grandfather and he lives out of state.
If this seller is truly motivated, he is going to consider an offer of $80,000. If he agrees to your offer, you added $20,000 profit to your ROI (return on investment). By asking the right qualifying questions, you were able to determine that the seller did not want the burden of the property.
Learning to see real estate opportunities is a skill that will increase your quality of life dramatically. Real estate is one of the oldest businesses known to man. For centuries, man has made money off real estate and it is safe to assume that trend will continue.
The buildings may have changed, but many of the real estate strategies have been the same for hundreds of years. Start learning today Real Estate Development Coach!
