Buying Is Now 33.1% Cheaper Than Renting in the USThe results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a
7 Steps For Good Deals And Quick Decisions
As a Realtor, I have clients asking me to find them good deals. As an investor, it's just a habit to keep my eyes open for good deals. The term "good deal" is relative, but speaking from a rehab-flipper perspective, we're generally seeking a minimum Cash on Cash return of 12%. Considering the banks are paying less than 1%, that's pretty darn awesome!
My technique for finding deals varies and is continuously evolving, but I find deals both on-market (listed on the MLS) and off-market (not listed). For one of my recent clients, I've been crunching numbers on historic Tudors, spacious ranch styles, and even condemned burn-out properties. And while there are still good deals out there (and always will be), one thing I've learned is that good deals rarely sit on the shelf for very long.
For example, in this last week alone, my client missed out on two good deals because someone scooped the deal less than 30 minutes before my client pulled the trigger!
This is why QUICK DECISIONS MUST BE MADE to WIN BIDS ON GOOD DEALS!
How does one make a quick decision?
Follow these simple 7 steps to make quick decisions:
1. Get Pre-Qualified if you need a loan.
It doesn't take a great credit score, it just takes a phone call, and a little bit of time.
2. Know how much cash you have to work with (if any).
Cash-on-hand is great, but not always required. Investors can flip properties using zero cash out of their own pocket.
3. Predefine the geographic area you're searching for properties.
The Phoenix-Metro area is pretty big; define a 10 to 20 mile radius.
4. Crunch the numbers before you see the property.
Use an online calculator or spreadsheet to quickly evaluate potential deals. It shouldn't take more than 15 minutes.
5. Let the agent/contact/seller know you're interested ASAP.
Let them know you're excited and want to see it. And ask questions about the property over the phone!
6. Drop what you're doing, and go see it!
If possible, have the contractor inspect the property with you. If not, face-time, take pics, and/or secure an inspection period.
7. Make the offer ASAP!!!
Call it in! Write it up! Get them the earnest money deposit! (Yeah, it's helpful to have some cash for the EMD!)
I'm the first to admit I'd rather be slow than to be wrong, but when everything tells you it's a deal you have to act fast!
Yes, I'm gonna say it....IF YOU SNOOZE, YOU LOSE!
Have questions about investing, rehabbing, or how to take the next step? Just ask!!! My name is Michael, and I'm here to help.