Step-By-Step How to do a Real Estate Investment

Step-By-Step How to do a Real Estate Investment

1. Find a Property owned by a Motivated Seller;

2. Contact Owner (SkipTrace if necessary); Find out reason for wanting to sell, and asking price;

3. Gather Information to be able to evaluate the property & run the numbers; (Property Type, Beds, Baths, Square Footage, Year Built, Lot Size, Condition, Photos or Video)

4. Run The Numbers based on Comps (recently sold comparable properties in same neighborhood) to figure ARV (after repair value);

5. Estimate Repair Needs or have Contractor Bid;

6. Take ARV x preferred discount percentage for your market (what investors typically look to pay 60%-90%) and subtract Est Repairs to get MAO (Max Allowed Offer), deduct your mark-up if planning to wholesale;

7. Make Offer (negotiate if necessary);

8. Contract to Purchase Property;

9. Open Escrow (at Title Co or Attorney) & pay EMD (Earnest Money Deposit);

10. Do Due Diligence, (renegotiate if necessary);

11. (If Assigning/Wholesaling), market your contract to other investors;

12. Close on the property, (typically 7-30 days after Escrow opened);

13. (If Other Exit Strategy), Get to work!

Conclusion…

Almost every real estate deal you do will flow just like this list...Keep it simple! #DealFlow

That’s my 2 cents, which isn’t worth a penny!

Good Selling!! Keep Grinding!! Follow me on social media for daily motivation.

————————————————————————

Disclaimer: Author is not an Accountant, Attorney, Financial Advisor, Tax Advisor, Broker, or Agent. This is for general information, and not tax or investment advice. Readers should do their own due diligence and seek professional counsel prior to making any kind of tax changes or investments.