Do you want to make money as a real estate investor?
Broadly speaking, you could take a long-term approach, where you buy a property, sit on it for several years and sell it off at a profit. Or you could take the short-term approach, where you buy properties and sell them soon after, typically after making repairs or upgrades.
In this article, our focus is on the short-term strategy. We’re telling you how you can buy and sell real estate properties fast, all while making a tidy profit.
Get Your Finances in Order
Real estate is a capital-intensive investment.
Sure, there are ways to invest in real estate without having a lot of money, such as investing in a REIT, but if you want to be involved in the business of buying and selling properties, you need a substantial amount of money.
Remember, your goal is to buy and sell real estate properties – fast. This means snapping up a property that suits your needs as soon as is it becomes available. You don’t have the time to processes a mortgage or explore other financing options.
As such, be sure to raise sufficient capital before you get started in this industry. Although you’ll be eyeing low-cost properties, such as fix uppers, they still don’t come cheap. An abandoned single-family home going for a throwaway price, for instance, can still cost six figures depending on location.
Focus on Specific Locations
As a real estate flipper, you want to get the best deal when buying properties. This means casting a wider net, so you don’t miss out on cheap properties as they become available.
However, be careful not to cast too wide a net, at least when starting out. You don’t want to travel thousands of miles away from your locality just to check out a property.
It’s advisable to focus on specific locations and develop your reputation there. With time, you’ll find that you won’t be actively looking for properties to buy. Sellers will be seeking you for quick deals.
Do your market research and find a location with a vibrant real estate market, and then set up your operations there.
Diversify Your Property Portfolio
As a newbie, you naturally want to focus on residential buildings. However, if you want to grow and make money, expand your horizons.
For example, you could look into container buildings both in residential and commercial settings. Check out this container bar to get an idea of how shipping containers are being used in real estate.
You can also look into land, especially smaller plots that are quickly affordable.
Build Connections With Industry Professionals
As a real estate investor, you need to have quick access to industry professionals, such as real estate agents, property valuers, and attorneys.
When you want to buy a property, for instance, there’s a lot that needs to happen before you can close the deal. When you have the professionals who can help you close the deal on speed dial, there won’t be unnecessary transactional delays.
Make Money Buying and Selling Real Estate Properties
The real estate market in the United States is a prime investment destination. However, you need a good strategy in order to succeed. With this guide on how to sell and buy real estate properties fast, we have given you one strategy that works.
Need more real estate investing tips? Keep reading our blog.