I’ve already talked with him and verified everything in writing. He’ll borrow the money using his credit; we’ll buy the home together and rent it out as 50-50 partners. Plan D: I have included a contingency clause in the contract; therefore, if nothing works out, I’ll just back out. (more…)
It’s easier to get into real estate than to get out of it. A real estate investing business plan for most people goes like this: “I’m going to get some property, and something good is going to happen.” Thirty years later, they have 38 rental properties. (more…)
The risk you take lies in not receiving and working with the proper information. You have to verify that the property really is worth $450,000 or more to get a good deal. Take time to gather comparable sales data and verify it with a strong, trustworthy market player to learn the real value of the property. (more…)
Now I get a report from the management company I hired and review the numbers without fail every Friday. You see, if I only reviewed the numbers every month or two, I’d lose track of what’s going on. I know that if something got out of control during the week, it could be radically out of control for the month. (more…)
- No cash flow. Deals are about to close, but you can’t pay the rent this month.
- Bad accounting. In a lucrative year, you owe the IRS $30,000 but only have $18 left in your business bank account.
- Poor management. Your management plan, if you have one, is chaotic. (more…)
You’re running a business. Whatever business you’re in, you ought to continually spend some of your revenue on education. The best ways to educate yourself about real estate include joining your local real estate association, reading books on the subject, attending workshops, and meeting with other investors. (more…)