Sunday, January 3, 2010

Real Estate Investing Success 101

What type of investment are you looking for?

1. Identify your strategy

Rehab or Flipper
Rental Income (Cash-flow Property)
Long Term Price Appreciation

2. Now that you know your strategy its time to formulate a plan of action

Develop an exit strategy before you do anything else (ex. How will I rent out or sell this home?)
Establish a Budget for what you want to achieve
Set aside reserves for unforeseen circumstances
Know your market (ex. How much are properties in the retail market selling for or renting for)

3. Investing Models

Cash-Flow Model- Building a portfolio of cash flow houses can provide great returns maximize equity through appreciation

Cost = Acquisition Cost + Repair Cost
Income = (Monthly Rent - Expense) x 12
ROI = Income/Cost

Equity- Restoring distressed property is the fastest way to increase equity

Cost = Acquisition Cost + Repair Cost
Equity ($) = ARV - Cost
Equity (%) = ARV/Equity ($)


3. Your Key to success

Combining cash-flow and appreciation is the foundation to building wealth in Real Estate

At Investment Homes Direct we help you by supplying our client with and inventory of ready to close, quality real estate investing opportunities and by providing continuous reliable support throughout the investing experience




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