Investing in Real Estate in Colorado Springs
Real estate investing is always good and sometimes it’s in demand. When it’s in demand, dozens of real estate seminars begin rolling across the country and thousands of people spend thousands of dollars for investing education. It’s startling to learn that of all those thousands of eager folks who attend these seminars only about 5% buy even one investment house. Why? The real estate gurus sell the “sizzle” and make profiting from real estate sound easy. The truth is that it’s simple, but not easy. Here’s are quick tips that will enable anyone to begin building financial independence through real estate investing.
Buy homes below full market value
Yes, people really do sell homes for less than the home’s full value. The key is to understand that most home owners will only consider a purchase offer that is all cash and within 5% to 10% of their asking price. The successful investor learns to recognize financially distressed home owners who have no choice but to sell for less than market value. Unfortunately, some of these home owners have lost their job or been suddenly transferred; they are divorcing; they been living beyond their income; the family has been overwhelmed with medical bills. Those are examples of motivated sellers. They have to get their house sold, and they will accept something other than a conventional, all cash offer.
Finding motivated sellers
It can be challenging but finding motivated sellers in Colorado Springs can be done. You have to be patient and you have to work at it! Like any business it is important to develop a little marketing plan. One that is simple, yet very effective, marketing plan was developed by the Fuller Brush company over 75 years ago. This door to door sales technique is still in use in today’s business market. You are selling your skill as a home buyer to people who must sell. You are there when they need you and you have the skill to help them solve at least part of their problem. With door to door prospecting you will learn more and buy more homes quicker than any other method.
Watch Public Notices
Another technique you can use to find motivated seller is by watching public notices for the announcement of foreclosure sales. Meeting with a home owner right after they’ve received a notice that they are about to lose their home allows you to deal with a very motivated seller. Other public notices that provide buying opportunities include probate, divorce and bankruptcy. You can follow the “Homes for Sale” listings in your local newspaper or Internet site. You can telephone the names found in these notices or, and this is the least time consuming, send a postcard expressing your interest in buying their property. It will produce buying opportunities, just not as many as personal contact.
After you’ve found a motivated seller you must understand how to structure offers that provide benefits for both you and for the home owner. A good real estate investor quickly learns that this is not a business of stealing property, but of solving problems in a way that benefits the seller. Chances are, the home owner is in a tight spot of some kind. You can save them from public embarrassment and, in most cases, give them at least a little cash to get a new start. However, no investor can afford to leave cash in every deal. However, you can use creative techniques like, leases, option and taking over mortgage payments. Little or no cash is needed for those deals. There are many resources available for learning these techniques. Books, seminars, and online articles could teach you how to be a market savvy real estate investor.
There is a lot to take in when it comes to investing in your first real estate property. However, you have to make your profit when you buy! Never make a purchase until you’ve carefully determined exactly how you will get to your profit. If you hold it as a long term investment, will the monthly rental income more than cover the monthly mortgage payment? Will you sell the deal to another investor for fast cash? Will you do some fix-up and sell the property for full value? Will you quickly trade it for a more desirable property? Have a plan before you buy because it will determine the success of your new business ventures.
These techniques are great resources when you start investing in Colorado Springs real estate. The real estate business is unpredictable and very competitive. The amount of your success depends greatly on your amount of determination and perseverance. Working with a qualified real estate agent and gaining more knowledge and tips will help you developing an effective marketing plan that best suits your personal strengths and resources. If you will unfailingly follow a well-researched marketing plan for a few months you will be well on your way to financial independence.
For assistance in locating foreclosed properties, or to gain help in locating your first investment home, contact Merit Co today. We are eager to help you find the right property to invest in.