5 Strategies Used by Successful Investors
If you have been contemplating the purchase of Dallas foreclosures but aren't sure where to begin then there is good news and bad news.
The good news is that buying a bank or government owned Dallas home is easier than you might think once you know the ropes.
The bad news is there is a lot of misinformation, high priced programs and inexperienced agents trying to make a buck off your ignorance.
Don't spend all your time and money chasing dreams...
use these five proven strategies to chase profits instead.
1.
Get up-to-date information.
The Dallas foreclosure market is competitive especially for the best bargains; it is essential to have the most recent and up-to-date information available in order to avoid sifting through what the pros have left behind.
Work with an agent that knows the market and provides the most recent data.
A reputable agent will take time to understand the type of property you are searching for, the area, price range and other significant factors, then immediately notify you when one comes on the market.
2.
Do your homework.
Don't fall in love with a property.
Remain objective and do your homework on the neighborhood, schools, crime rate, taxes, insurance, prior work performed on the property and other variables likely to impact the deal.
Use an agent to negotiate price, terms and other factors in your favor.
3.
Go Low and Often.
Depending on whether the home is a VA, HUD/FHA, or bank owned property each will have different requirements and procedures required to submit a bid or offer.
As a general rule of thumb, bid low and often to find the best deals.
You may be rejected but those offers that are accepted will come with substantial equity from day one.
Remember, when apply for additional bank loans or financing you must "discount" 20 to 30 percent so having additional equity help maintain healthy margins that allow you to grow.
4.
Analyze the numbers.
Every investor knows their rate of return and pulls the plug on non-performing assets.
Investment real estate should be treated like a stock portfolio - do a 1031 exchange on non-performing Dallas real estate or properties that are fully depreciated.
Once a property no longer conforms to your return expectations it is time to let it go and find another that does.
5.
Be willing to walk.
If you aren't willing to walk away from a deal then you might have become emotionally involved.
While that is fine if you are purchasing the family home, it isn't wise when buying investment real estate.
Working with an agent is one way to keep an objective point of view during the entire transaction; find someone you can work with who isn't afraid to provide constructive criticism when needed.
You will thank them later!
The good news is that buying a bank or government owned Dallas home is easier than you might think once you know the ropes.
The bad news is there is a lot of misinformation, high priced programs and inexperienced agents trying to make a buck off your ignorance.
Don't spend all your time and money chasing dreams...
use these five proven strategies to chase profits instead.
1.
Get up-to-date information.
The Dallas foreclosure market is competitive especially for the best bargains; it is essential to have the most recent and up-to-date information available in order to avoid sifting through what the pros have left behind.
Work with an agent that knows the market and provides the most recent data.
A reputable agent will take time to understand the type of property you are searching for, the area, price range and other significant factors, then immediately notify you when one comes on the market.
2.
Do your homework.
Don't fall in love with a property.
Remain objective and do your homework on the neighborhood, schools, crime rate, taxes, insurance, prior work performed on the property and other variables likely to impact the deal.
Use an agent to negotiate price, terms and other factors in your favor.
3.
Go Low and Often.
Depending on whether the home is a VA, HUD/FHA, or bank owned property each will have different requirements and procedures required to submit a bid or offer.
As a general rule of thumb, bid low and often to find the best deals.
You may be rejected but those offers that are accepted will come with substantial equity from day one.
Remember, when apply for additional bank loans or financing you must "discount" 20 to 30 percent so having additional equity help maintain healthy margins that allow you to grow.
4.
Analyze the numbers.
Every investor knows their rate of return and pulls the plug on non-performing assets.
Investment real estate should be treated like a stock portfolio - do a 1031 exchange on non-performing Dallas real estate or properties that are fully depreciated.
Once a property no longer conforms to your return expectations it is time to let it go and find another that does.
5.
Be willing to walk.
If you aren't willing to walk away from a deal then you might have become emotionally involved.
While that is fine if you are purchasing the family home, it isn't wise when buying investment real estate.
Working with an agent is one way to keep an objective point of view during the entire transaction; find someone you can work with who isn't afraid to provide constructive criticism when needed.
You will thank them later!
