3 Steps to Purchasing an Investment Home
Buying a real estate investment property is akin to manufacturing a product in that there is a specific process that should be followed and repeated. Executing these 3 steps can help ensure your next real estate investment deal is a quality one.
Identifying a potential real estate investment property is the first step to purchasing a quality real estate investment property. Most REI properties have the following two things in common:
Distressed Condition and Motivated Seller
Keep your eyes open, as your next deal could be closer than you think.
Calculating how much to pay is arguably the most important part of purchasing a real estate investment property. Use the following formula to quickly derive a purchase price:
Purchase Price = After Repair Value – (Repair Budget + Closing Cost + Selling Cost + Holding Cost + Desired Profit)
Don’t hesitate to make an offer! Having your ducks in a row and presenting an organized contract package will increase the chance of getting your offer being accepted.
The more you learn, the more you earn. Happy investing!