Pennies to Profits
How to Jump-Start Your Career in Real Estate
You may think you need a big pile of cash to jump start your career as a real estate investor. You know that not having a large amount of capital means you’ll likely need to borrow money to get started. Maybe that’s why you haven’t started, the entire traditional lending process can certainly be intimidating. However, let’s explore some ways you can turn your pennies, into properties and begin profiting in a short amount of time.
As mentioned, lending from a bank can mean some pretty ridged restrictions. For example, you may be required to put a certain amount of money down, your credit and income will be scrutinized and the overall process is time consuming. So, what do you do when you’re good for the money, but not in the eyes of a bank? Consider a private lender.
Securing money from a private lender is one of the fastest options available. We all know, time is money. The more time you save, the sooner you can buy, flip, rent or sell the property for a profit. One reason why lending from a private investor is faster, is because it’s not as complex. Private lenders put heavier consideration on the property to be invested upon rather than the investors income and credit history.
This can benefit you especially if you’re a first-time investor. Imagine having an entity with strong financial analysis and business analytical chops look at your investment and approve it. It’s validation that you’re likely to succeed in your new business venture. Of course, your success still relies on your ability to flip, rent, sell, etc. while meeting market demands, but a little reassurance never hurt anyone.
But how do you find a private lender and apply for a private loan? Start right here, at lendsomemoney.com. The application is quick and painless. You could be approved in as little as 24-hours. Our system is set up so that if we can’t approve your loan, someone in our network most likely can. Don’t wait, get the funding you need for your future, today!
Common Mistakes while Flipping Houses
Flipping houses is an exciting venture that can make you a bundle. However, if you aren’t careful, it can also cost you. Here are some hot tips to keep your expenses low and profit high.
- Trust your Realtor- After repair value can only be assessed by local realtor, not by online tools. Trying to determine the After Repair Value of a home without consulting a realtor is impossible to do accurately. Although online tools such a Zillow may be a convenient place to begin your research, be sure to consult with a professional local realtor in order to accurately predict how much value can realistically be added.
Working with a local realtor also has the advantage of saving you time, which is key in a competitive real estate market. The longer you hold onto a property the greater the chance that the property’s value fluctuates from the original ARV, which increases the riskiness of your project.
2. Going it alone-While it may be possible to flip a house yourself, working with a team will allow you to leverage the experience of others, shortening your learning curve and allowing you to avoid major problems. Your team should include a real estate attorney, an accountant, an insurance agent, real estate agents and contractors.
Although hiring professionals may cost more up front, it can save you a bundle down the line by helping you avoid common pitfalls. For instance, working with a CPA can allow you to keep your taxes as low as possible while staying on the right side of the IRS.
3. Hold on to property for too long-The longer you hold on to a property, the higher your soft costs will be. Soft costs are the costs associated with holding onto the property such as interest on loans and real estate tax. Holding on to a property for too long can cause your soft costs to rise by thousands of dollars. A $100,000 loan financed at 10% will cost you $5000 in interest after six months, $7,500 after 9 months and $10,000 after a year. Electric bills, gas bills, property maintenance, all these expenses accumulate and can add thousands on to your expenses.