Not a day goes by that I do not receive a call from a would be real estate investor who would like to begin buying, fixing and selling houses. And I want to say, again, that I am not against this kind of real estate investing and in fact know it to be a very profitable activity.
But you have to make the numbers work in your favor and your numbers have to have the ability to be accomplished. For instance, there are those that will not want to touch a property unless and until they can get a 20%-25% profit from the project. And if you can find those projects, snap them up! But in today’s market with many, many people all looking for the same deals you will find more and more investor/speculators attempting to turn properties for as little as 5%-8%. (And those are dangerous numbers!)
Somewhere in the middle is where you will probably have to be. Unless you refine and get really serious about how you find out about properties. Again, I have friends and acquaintances who have their own networks and advertising and can find those 15%-25% properties. But they work hard to find them, to keep their contractors happy and to keep a steady source of leads and buyers to move the properties quickly.
Should you do 5 houses a year at $20,000 profit per house you will make a $100,000. That’s pretty good money. It’ s going to take more than just a call to your REALTOR, some paint and a quick sale to make that happen.
Just my thoughts. Not trying to discourage. Far from it. I want you to know and plan for a way to make it happen!