Do You Know Your Market?
We would consider ourselves somewhat new to real estate, but don’t let that give you the impression that we don’t know what we are doing! While we may not have decades of experience, what we do have are systems and mentors that we can and do use every day so that we keep up with our markets. That experience and our systems are what keep us safe in real estate and allow us to continue what we do: helping people.
The inspiration behind this post is an article that I found this week that highlights the woes of real estate investing. The article is focused on key areas where the market is far more volatile than where we live, but it highlights the lack of experience and systems in the newer generation of investors and how quickly you can get into trouble with real estate.
It should come as no surprise that there are so many people jumping into real estate. HGTV and other networks that host home improvement shows really do a great job of showing how fun and rewarding real estate can be. What you don’t see is the behind the scenes, less fun stuff that is even more important that just tearing out a wall.
The less-than-sexy analytical side where deals are found and evaluated wouldn’t make good TV. This aspect seems to be lost on some new investors that buy too high and wind up unable to make costly mortgage payments. The numbers that we use keep us safe and greatly reduce the chances of that happening to us. We have walked away from plenty of deals because the price was too high. Not everyone does that though and a property that was purchased for too high of a price tag can easily turn into a business crippling loss.
In order to stay in business, we have to stick with our business plan and systems. We don’t stray away from them or try to fudge numbers and make them work. It is either a deal or it isn’t and we don’t go above a certain threshold when we buy. It keeps us safe and further ensures our investors will back us with our purchases.
If you would like to read the article, you can find it here:
Some of the wording makes is sound like some investors are gambling (which isn’t far from the truth sometimes). It is really quite simple and there are ways to make some deals work, but it all starts with the right purchase price. You really do make your money when you buy!
We can be reached at (850) 710-0710 or by email at firstname.lastname@example.org. Sonny Side Property Solutions is here to help everyone with their real estate needs, especially homeowners that need help now! We are here to serve the community and provide real estate solutions for any situation and we have a national network of investors and brokers that we work with and can call on at any time.
We can be reached by phone at (850) 710-0710 or by email at email@example.com.