Warning from a Realtor

[Ryan Urban]

I spoke with an experienced realtor today, and he told me something I thought I would pass on.

He told me that here in Colorado, part of the recent foreclosure increase has been homes owned by inexperienced real estate flippers.

He said that many people are rushing into the REI business, spurred on by the various infomercials and TV shows that feature flipping homes. They're not doing their homework and they're not prepared financially if the home does not rent within 45 days. One or two months of having to make the house payment sinks them.

Incredibly, he says there's a NEW REI business - swooping in behind these failed investors and buying their homes on the cheap. Amazing.

I'm new to REI, but I'm not new to business. No matter what business you choose to pursue, you absolutely must plan ahead. Do your homework. Do your research. Don't jump until you're ready.

I've written many business & marketing plans, and sometimes at the end of the plan it's clear you should not do it. That's one of the great benefits of planning ahead - avoiding disaster!

And by the way, from what I've seen, this message board is an awesome resource for REI newbies like me, so read all you can and ask questions.

Just a friendly warning, best of luck to us all!