High Profit Real Estate Investing--Make a Good Deal Every Ti
Sunday 17 February
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by Richard Odessey
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Knowing what a Good Deal is - Is the Key to Success in Real Estate.
Take this little survey: The most important key to Real Estate Success is:
1. Finding Motivated Sellers
2. Funding Your Deals
4. Knowing a Good Deal when you see one.
Yes all of them are important. And if you answered #4 - you're right on the money. Why, because if your deal is a not good one, all your other skills and marketing and power will not make you money, and may even lead to disaster.
On the other hand, if you can unfailingly target good deals, you will always be successful and all the other skills and your marketing methods will serve to increase your success.
What is a Good Deal?
It's a lot easier to state the question than give the answer. Why? Because it depends on many factors like:
FMarket value and purchase price
FExpenses, carrying costs, repairs
FCashflow and profit
FAnd more . . .
And most importantly, it depends on the type of deal you're doing. For example, if you have a loan on a property that you intend to rent or sell on a lease option, the terms of the mortgage, future tax increases, and current area rents are critical to consider in insuring a positive cashflow. However, if you are planning to do a short rehab job, and sell or just flip to another investor, rental income is irrelevant as are future tax increases.
It's What You Don't Think About that Can Get You
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