Real estate investment is the number one way to financial success. In fact, 90% of millionaires worldwide accumulated their wealth through buying investment property.
Ready for your slice of the pie?
The majority of entrepreneurs begin their real estate journey with a process known as ‘fix and flip’. Several shows have even recently popularized this method as it has repeatedly created wealth for millions of people. Programs like Rehab Addict, Fixer Upper, and Property Brothers through homeowners and investors, inspire viewers to begin their own rehab projects.
‘Fix and Flip’ involves first locating an appropriate property for sale, purchasing the property, improving conditions through repair, and reselling the property for a profit.
Just like in any other venture, real estate requires confidence which comes from a thorough understanding of the inner workings and what steps you should follow. Here is a list of what you should do to make your real estate dream a reality.
Locate The ‘Right’ Property
Do your research, drive around, network and employ others to scout neighborhoods for that diamond-in-the-rough property. This is the home that has potential value that the average person may not see. This is referred to as the ‘handyman special‘, a discounted and undervalued property ripe for rehab. Find these and narrow down your options based on location and profitability.
Pay The Lowest Down Payment Possible
Cash is king when it comes to real estate, even more so if you want to take advantage of what looks to be a great buy. Sellers will often accept a lower down payment if you can front the cash. This motivates and helps them take your offers seriously.
Get To Work
Move in and make the necessary repairs. Do these yourself if at all possible. If not, it is highly recommended that you consult a highly capable contractor to perform renovations. Be sure to perform your due diligence by collecting references and reading reviews.
Bring in the Money
Now that the home is refurbished, both inside and out, its the time to recoup. You can sell outright through a realtor, rent the home out to tenants, or you refinance the home based on a later appraisal.
Once you’ve successfully performed your first ‘fix and flip,’ you can use the money to repeat the process on even larger and better properties all while building wealth and experience.