Market Research and Strategy. This is where you break down the work you have done assessing the industry; why you know there is an opportunity and how you will take advantage of that opportunity. You can talk about a few of the technicalities but remember not too much detail that is what the appendix is for!
Know when to buy, know when to sell. While having a lot of land seems like a good idea, there are times that you can make a good profit when you sell some of your assets to buy a better piece of real estate. Often, it’s better to sell some of your real properties when you found land for sale at a superior location.
It was a time when REO’s [REO stands for real Estate Owned] were everywhere. It was the first time I understood short sale. When times are like they are now, it’s a good time to get out and make money. The real estate is there, and the prices are good.
With every real estate investment there comes a contract. The contract, details both you, and the seller rights and agreed terms and conditions. If any part of this buyer seller relationship defaults on the contract, you can usually recover the money or deposit paid by law. The laws of the land differ from country to country, so this is also another reason for tip number one above.
You need to be a good observer of the market too. You should know exactly when you need to spend money and when the time to tighten your strings has come. You should be able to slow down your spending when the market is slow. Also, it is not advisable to focus on investment purchases and renovations when the market is looking at a slump.
It is not a hard and fast rule to pay the down payments in cash. If services can be traded, so can be valuable items, such as musical instruments, furniture, paintings, and even pets! Rare species of animals prove to be a perfect down payment. Some investors have even traded their precious emeralds, rubies, and other gems!
Before the housing meltdown, we purchased a nice rehab property that we decided to keep for our personal home (and it’s still a great deal even after housing prices have tanked). However, the words “trashed and destroyed” doesn’t quite cut it with describing this house. The previous owners even took the ceiling fan that was in the entry way. Which has a 16′ ceiling. The ladder needed to reach that high costs more than the ceiling fan is worth!
Flipping houses is work. It takes hard work to find an exceptionally good deal. It takes knowledge of your market. It takes knowledge of rehabbing. It takes knowledge of the house selling process. It requires holding money and it usually takes longer than you thought it would. That 3-month time frame you had in mind will probably be more like 6 months unless you’ve done a lot of fix and flips before.