Real Estate Investing Blog

When it comes to real estate investing, it’s hard to come up with any point that’s more relevant than this one: evaluating deals before you make them is essential.

In other words, before you make a commitment to buying any given property, it’s important to look at the ways in which the purchase would benefit you. You need to look at the current state of the real estate market in your area: remember, there’s no such thing as the real estate market, there’s only the local real estate market when you’re evaluating deals.

Think about it for a minute. In some areas, back in the 90s home prices skyrocketed, and now those areas seem to have prices that are falling lower almost every day. Other areas in which prices were rising at a much more reasonable pace may still be seeing corrections, but not such drastic ones.

Even when you consider short sales and pre-foreclosure deals, your ability to get the most out of your real estate investment is going to depend on how closely you looked at the market when you made the purchase. Though you could be purchasing a home for half of its market value, by the time you factor in market conditions and changes that you would like to make, you’re likely to discover that there are some deals that just aren’t as good as they first appeared to be.

When you’re in the habit of evaluating deals before going into them, you’ll find that you can have greater confidence that you’ll get the results that you’re looking for.

Evaluating deals is an essential skill that you’ll need to learn if you want to build wealth with your real estate investments. So, what does it take to evaluate your prospective deals so that you can be sure that you’re making the right investments?

One option is to take advantage of mentoring opportunities when they present themselves; what better way to learn which investments you should jump on and which you should shy away from than to talk over your options with someone who has had success?

Another option is to take the time to really research your options. Evaluating deals isn’t just about determining whether or not you’re going to be able to get the right price for a property that you want to buy; it’s also about knowing what the real estate market in that area is like, whether or not you’ll be able to turn around and sell the home at a profit.

Similarly, when it comes to entering into partnerships it’s important to be able to evaluate the deal. If you go into an investment with another party, you need to be sure that you’re making the right choice - it really is as simple as that.

However, whether you’re looking at an individual property or you are focusing on making the choice to go into a partnership, evaluating deals is an essential skill. Until it’s well-developed for you, keep in mind that if something feels too good to be true it probably is and, if there’s something that’s holding you back, it’s a good idea to do more research.

Wouldn’t it be great if you had a supercharged buying and selling ‘machine’ that brought you in profits every single month.  Can’t you just visualize that JOB fading in to the sunset?

I did and I want to share with you a system for making that a reality.

As most of you know, I am a technology buff – meaning I love employing technology to do as much ‘work’ for me as possible, and then delegating or outsourcing the management of that to a reliable team.

So, I find the best software (or develop it!) and then choose team members that all have their valued positions and play them well – and sometimes I even have 1st string and 2nd string team members. 

It is really the only way to (1) get it all done, but more importantly (2) it is the only way to grow your business.

When I found out that my guest, Larry Goins, for this teleseminar was regularly selling 10-15 houses every single month and never looking at any of them – not even driving to see any of them, I had to get him to tell us how.

Listen to the replay of this teleseminar now – if you want you can even download it to listen in your car.

Best of Success,
Michelle Odessey
michelle@investorwealth.com
770-338-2797 10a-5p M-F

 

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REO Question:

Dear Michelle,Thank you for this email. Here is a question I have for you.

Staying in touch with [the] REO [department] at a mortgage company after the [auction at the] court house steps could work to secure a property before it goes to a local realtor[, Right?].

In NC, the price jumps 5% with each bid after the courthouse steps. From your experience, can one contact a mortgage company immediately after the bid reinstatement period with a lower bid–one closer to the amount for which the bank took back the property, thereby cutting off the 5% jump in price.

(This assumes there have been no bids save for the bank’s on the property.)

Michelle’s Response:

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