Investing in real estate is a great way to create a lucrative, flexible business model. Whether you’re looking to change careers or already have some experience in the real estate industry, explore how research, an exit strategy and reliable private money lending for real estate can make the difference between a flop and a success.
Research the Market
What do you know about real estate in your area? Property values vary dramatically across the country, so it’s essential to get to know your local community. What may sell in a matter of minutes in California may struggle to sell in another state.
Market research goes even closer than the state level. Look at your county, your city and your neighborhood to determine the common property values. In many communities, the specific street is an important factor in the value of the property. You need to know if you’re getting a great deal or purchasing a home that’s already at the top of the price range.
Have an Exit Strategy
Most real estate investors purchase a property with the intent to quickly renovate and sell it. Unless you’re planning on leasing or renting your property, you’ll need a quick exit strategy. Real estate bridge loans are a great starting point for short-term real estate investing, so check your loan term and make sure your chosen property can be ready to sell before the loan is due.
There are many exit strategies available, so weigh your options carefully. Instead of simply selling your updated property, you can refinance it and use a business loan or commercial mortgage to pay off your hard money loan. Some investors choose to hold onto their property as a lucrative rental.
Work With Professionals
It takes a team to successfully invest in real estate. While you may have the eye for properties that get the ball rolling, you’ll need to work with a local realtor, professional contracting team and a lender to pull it all together. Receive an estimate from your professional contractor before starting the project to be sure you have the available financing to accomplish the renovations promptly. Some of the best properties need updates, new appliances or other improvements, so an affordable, reliable contractor can be the difference between a major success and a costly failure.
Choose your team carefully. Work with industry leaders with a track record of successful investments in your chosen community. You may want to look for motivated home seller leads These leads are great for investment as sometimes they are cheap. A local lender, contractor and realtor all have an inside look at how the real estate industry works in your area, which makes them all invaluable resources.
Use Hard Money Loans for Flexible Funding
A hard money loan is the final piece of the puzzle for many real estate investment projects. If you’re just getting started with investing, you may not have a stellar credit score or history of successful investments. Hard money loans for real estate investors don’t require any of those. Instead, you simply need to show proof of a plan and a quality piece of real estate. Learn more today to see how you can take flexible funding and quickly turn over real estate for a successful investment.