CHAPTER 4 Homes to Invest In
So now that you’ve got a better understanding of ways to finance your investment deals, or even a plan of how you are going to acquire your financing, how do you know which homes or properties to buy/invest in? There are plenty of factors you need to consider to ensure the purchase makes sense. There is also a lot of due diligence you need to complete as a buyer during a contract period to make sure you have a clearer picture of the current and actual condition of the property. As the saying goes, you make money when you buy , not when you sell . This is why it’s key to buy the right property, which entails being clear on where you’re trying to sell/rent and who your buyers/prospective tenants are. Also, keep in mind this saying: “You don’t have to like the house, just the numbers.” Read on for more details on how to make the best choice, particularly when it comes to buying homes that need renovations in this chapter.
WHERE TO START
The first thing you have to do is decide if you are buying a house to renovate and rent out, or renovate and resale! Then next, its time to choose your market. If you’re flipping, consider looking for the location closest to you that has a population of at least 70,000+ people. (Bigger market = more opportunity.) This is what we will consider as your local market . Another option is remote investing , which could theoretically be, well, anywhere. If you are going to rent, the market can be smaller and analyzed in a different way. We will cover this more in later chapters. 27
Powered by FlippingBook