The main job of a real estate investor is to find potential deals and convert them. Instead of concentrating on building management and other operations, you can concentrate on deals where the big money is made. It would be really useful if you spent a lot of time on making deals.
The time required to make deals will be the same; Let it be a small deal or a big deal which earns you a huge sum of money. There are 6 things which need to be consider before entering in to a deal.
1. Profit is Low Anyone would like to make more money in real estate business. So, if you find that the profit you are going to get is very low and the seller won't drop the price then you need to move to another property.
2. Missing Information If the seller can't provide you with information about the profit and loss of the property, then you need to look for another deal.
3. Assumed Numbers It's not necessary to reveal the profit which you have assumed because lenders won't give weightage to these numbers.
4. Trouble in property A property might look good on paper but until you visit it you should not get in to that deal because the site visit might show a different picture. Some sellers won't reveal the repair costs to be incurred and they hope to pass these charges to the buyer instead.
5. Wrong Locality If you found that the neighborhood has decline in its value then the property might also have this issue. So, you should also consider the value of the nearby properties.
6. Duration on the Market Good properties sell faster while bad properties stay on the market for a long time. If you find that a property is on the market for a long time, you should try finding the problems on the property.
If you find any of these warning signs, then you should consider about getting in to it and you should move on the next property.
The time required to make deals will be the same; Let it be a small deal or a big deal which earns you a huge sum of money. There are 6 things which need to be consider before entering in to a deal.
1. Profit is Low Anyone would like to make more money in real estate business. So, if you find that the profit you are going to get is very low and the seller won't drop the price then you need to move to another property.
2. Missing Information If the seller can't provide you with information about the profit and loss of the property, then you need to look for another deal.
3. Assumed Numbers It's not necessary to reveal the profit which you have assumed because lenders won't give weightage to these numbers.
4. Trouble in property A property might look good on paper but until you visit it you should not get in to that deal because the site visit might show a different picture. Some sellers won't reveal the repair costs to be incurred and they hope to pass these charges to the buyer instead.
5. Wrong Locality If you found that the neighborhood has decline in its value then the property might also have this issue. So, you should also consider the value of the nearby properties.
6. Duration on the Market Good properties sell faster while bad properties stay on the market for a long time. If you find that a property is on the market for a long time, you should try finding the problems on the property.
If you find any of these warning signs, then you should consider about getting in to it and you should move on the next property.
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