How do you know if an investment property is a truly GOOD deal?
I get this question often and the answer is…there are several simple, yet effective, ways to figure out if an investment property you’ve found makes sense as a deal for you.
Let me be very clear, it’s not about whether I LIKE the property. That has absolutely nothing to do with it!
Pro Tip: Take emotion out of the equation when evaluating an investment property.
You see…to me, these houses are simply inventory. In fact, some of the deals I do these days are on investment properties
The world of real estate investing is full of “do this” or “don’t do that”, but do you ever wonder whether you should be doing deals with institutional versus private motivated sellers?
After all, it’s always good to have options!
People ask me all the time if I focus on deals that are primarily with private sellers or institutional sellers. And then, the inevitable next question—which is BETTER?
My answer: well…I actually do a mix.
I do a lot of HUD and bank foreclosure deals and of course they are institutional seller. Made an offer on one just this morning
I hear this question often, “Cam, I’m looking at a property but it’s a two bedroom home, should I avoid the deal or do it?” The reality is, there are scads of guidelines in the real estate investing world and a few hard and fast rules to follow, but one of your biggest guides will be what the real estate comps tell you.
When you come across a potential deal that goes against the known guidelines, and trust me you WILL, then it may be time to slow down, take a second look and perhaps reassess your options.
I’d like to address a dilemma that you may have run into a time or two as a real estate investor…LOW INVENTORY REAL ESTATE MARKETS.
This is a situation where competition is high and inventory is tight. If you’re an investor, you KNOW this can be a real problem because you might only have limited inventory to work with.
You see…as investors, we’re in the business of buying and selling houses, and in order to do that we need to buy and sell houses. (I hope you get my subtle sarcastic humor here.)
If there are a limited number of