I get asked all the time how to make money with investment real estate or people will dream their idea to me about taking some of their money and flipping houses someday. Its awesome and I have always positioned myself as honest and pretty close to the current market. The problem is most of us are missing the biggest ROI or flip in real estate and its right under our noses. It is so easy it’s sickening and almost silly that we are not taking advantage of these huge windfalls and opportunities. We have the very thing that flippers try to do over and over again as well as what every single investor wakes up every morning looking to do.
We own homes with historically high equity and a market of buyers willing to pay up for your investment property. Your home that you live in currently may be the greatest investment you will ever had made and as many people dream of someday making money in real estate, most of us have an asset that will take us to the next level and really set us up to make smart financial decisions for ourselves. But this does not come without strategy and cant be followed my bad moves or making weak decisions, so I am giving you a list of 3 things to do today to take your wise investment and turn it into a launch board for deals to come.
Move – Now most greedy realtors will tell you to sell your house and buy a house and the mortgage is this and homes are that and all that crap, but that is not my message. I am saying it is now time to sell your home and realize a return. Call your parents and offer to pay all their monthly expenses to move in with them or do the same with a single friend, but make an arrangement to live for substantially less then you are right now and be ready to commit. I did not say this was easy but as you are learning making money in real estate is hard so buckle up.
Sell your house – Time to cash out at the top. Any house under $300,000 in good condition is selling fast in the suburbs. If you bought the house for market price or less 3 or more years ago you most likely have a nice pile of cash in the way of equity that you can take out and invest. This house is just an asset or an investment property and unless you are willing to sell high, you are not going to be a good investor. Some investors wait too long and it hurts or costs them an extra cycle but those that have no connection or fear of selling at the right time have the best chance of continued success with real estate. Get that house sold and get the highest dollar you can in a reasonable amount of time. I will warn you that now that you are selling the asset, you have to account for carrying costs so time is of the essence. Pricing a home too high can cost you thousands of dollars and be a big waste of time.
Buy Smart – Once you have sold your house and moved into a less expensive property, you only get to use that money once to make a smart move. This is no time to become a high-risk flipper or be a part of the next hot area. But instead buy where everyone else wants to buy but buy right. Even if you have to wait for the next cycle or a hiccup it will be worth it. Start a mail campaign to buy homes that fit your budget that may be distressed or not want the headache of a regular sale. Have your realtor scour the mls for possible deals in a hot neighborhood. You just have to be patient and take your time to make a good decision. Under no circumstances is this the time to buy a new fancy car or go on an expensive trip. You have to buy only a house and buy it correctly or lets get crazy and buy a pair for the same price. Also, this is not the time to risk that cash on an expensive home. Be frugal and smart and stick to a system that attracts the greatest number of buyers with the smallest amount of risk.
So now that you have bought a house right, sat tight while the market brought you equity, sold in a high time and then bought another home at a sweet price. You have created a formula that is low risk and high reward. As long as you can bear this scenario you should keep doing it and never ever waiver from a strict money management system. Gain equity through appreciation and be willing to sell at the right time. This system is obviously not for everyone but instead of always looking for the next opportunity, why aren’t we looking at the one we have now? We worked really hard to be able to buy at the right time so why not realize the success by selling at the right time. Its one of the many ways to make money in real estate and a great way to create added value and increase property values while you live in them. If you want to talk more about this I am glad to discuss and would love to hear your success stories.
Curt has been in the Indianapolis Real Estate business for over 10 years and spent his first years learning all aspects of commercial management and brokerage. He has had great success in managing existing commercial projects and new retail and office developments. Curt specializes in building owner representation and purchases in the Westfield Indiana market as well throughout the Indianapolis Metro area. Curt is passionate about growing the local Westfield community and in his free time volunteers with Westfield Youth Assistance and raising 2 children with his wife Jennifer.