With the real estate market receding, the credit market in crisis, the stock market plummeting, record job losses, and an overall feeling of despair, it's no wonder people have lost confidence and don't know how they can get money flowing.
As an expert in the real estate market I can tell you the great news. Anyone can make money in this market if they know how and get the experienced help they need to succeed.
What has actually happened? Simple, people bought more home than they could afford and the lenders facilitated that illusion. Many are either in or facing financial ruin with no help in sight.
They could have avoided the drama and trauma by educating themselves and aligning themselves with trusted advisers.The process is really rather simple. Here it is:
- Find a distressed property or seller (easy these days)
- Determine the current value (tip: you must know how to do this for yourself)
- Determine the costs (acquisition, repair, holding, sales, debt service)
- Establish your offer (don't forget to deduct your profit)
- Make and negotiate your offer (make sure it's escapable and assignable, no big deposits)
- Establish multiple funding sources (create a professional presentation to a lender or private investor)
- Determine primary and backup exit strategies (buy/hold, buy/flip, buy/fix/hold or flip, options, etc.)
- Perform due diligence (verify everything)
- Remove contingencies and close the deal
- Execute action plan and exit strategies
