If your dream is to become a millionaire, then real estate is one of the best vehicles to do it with. It does not matter where you live, what your education is, or what you do for a living. Step out and take advantage of the many opportunities that exist in real estate. Yes, it is possible to actually become a real estate millionaire when you familiarize yourself with the techniques and methods of real estate purchasing.
Things You'll Need
- Local newspaper
Study your local real estate market. Analyze the difficulties or the peaks of the local market, including the neighborhood factors, all the new construction being built and the supply and demand of local factions. Ask a real estate agent to give you some statistics on the local market there.
Evaluate the business cycles, interest rates, cataclysmic events, inflation and flow of funds in the cities that interest you. When you purchase real estate through a real estate agency, remember that the agent operates on a commission basis. You can easily search for property without paying an agent for a commission and save money that you can put in your own pocket.
Look through the classified ads in your local newspaper. Take a drive through the neighborhood and find "For Sale" signs sitting on the front lawns. Ask relatives, friends, business clients, and others if they know of any owner who is selling their property.
Analyze each property thoroughly. Learn about the condition of the house, past owners, location, and environmental factors, such as high traffic, amenities, nearby electricity lines, or a landfill in the vicinity. Consider the value of the house, its asking price, any improvements that need to be made, existing financing, liens or other liabilities attached to the home.
Consider the income potential of the home. Are there any repairs that need to be done, such as a leaky roof, wet basement, or hanging plaster from the walls? After investigating every aspect of the property, decide on a strategy that will put cash in your pocket, please the owner, and have minimum risk for you.
Choose to keep the property, rent it out to tenants, or flip the property to buy and then sell it immediately. Flipping property is the most profitable way to make enormous profits and start you on your way to becoming a real estate millionaire. Find a reliable contractor who can do the hard work for you or do it yourself if you have construction skills.
To create real estate wealth, know when to apply the right strategy to maximize cash profits. Utilize a specific strategy or use creative financing that fits the property's situation. You can purchase real estate with these financing options: No money down, take-out mortgage loans, seller financing, loan assumption, wraparound mortgages, lease options, a home equity line of credit, equity partners, credit cards, a promissory note, or your own creative financing options.
Buy foreclosures, pre-foreclosures, HUD and VA properties, short sales (buy lien at a reduced rate/costs without all the paperwork of a foreclosure) and REOs (real estate owned) to profit from real estate deals. Find a list of properties being sold at the local tax collector’s office, usually the county, and cash in on tax sales and tax liens. Bid online to buy these properties at the lowest bid.
Tips & Warnings
- Buy foreclosures, pre-foreclosures, HUD and VA properties, short sales (buy lien at a reduced rate/costs without all the paperwork of a foreclosure) and REOs (real estate owned) to profit from real estate deals.
- Find a list of properties being sold at the local tax collector’s office, usually the county, and cash in on tax sales and tax liens.
- Bid online to buy these properties at the lowest bid.
- Build a complete investment team of people (agents, contractors, electricians, accountants, mortgage brokers, etc.) before you buy so that you can be prepared beforehand.
- Visit your local courthouse to gain records on the properties.
- Pay close attention to the owner’s past record of property financing.
- Be creative in your strategies, traditional financing is not always best.
- Use every possible financing resource available and use leverage to buy a property.
- Change your financial situation for the better by paying bills on time, improving your credit and cut down on debt. This will improve your chances of financing for loans.
- Buy Dean Graziosi’s book “Be A Real Estate Millionaire.”
- Never buy a property without first seeing it and checking its history.
- Always run a title search on a property to see all debts related to it.
- It is important to keep track of repairs, improvements and the costs needed for the property.
- Do your homework or you could end up with a bad property that no one wants to buy and you cannot sell.
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