When investing in real estate the entire concept of making money goes up in smoke if you are forced to sit on a property too long. This applies to both rental types of real estate investments and to those purchased for resale. Sitting on an empty rental or a lingering sale property eats away at your bottom line. You need to make a sale in order to keep your investments performing as assets.
In today’s market quick turnarounds seem harder than before, but homes still sell and properties still rent out. People need a place to live and that’s the bottom line. The key to keeping things moving now, more than ever, is paying close attention to the top line.
In the past, real estate was such a lucrative investment that many investors got careless with how they spent at the onset and what they were spending on. Anything sold – eventually, and with the prices that were possible if it took a little longer, well, okay, as long as it sold. And if a longer sale ate away a small percent of the profit, it was still a good deal. That’s different now. There is no room for cavalier attitudes in any business and real estate is no different.
Smart investors doing it right can still make cents—in fact can still make dollars quickly in real estate. Looking for homes that are undervalued to start with and selling even cheaper because of need makes more sense now than it did in the past. Marketing and advertising that was always a necessary evil, as it is in any sales endeavor, is now more important. Learning how to take the best advantage of the cost effective Internet advertising is more important still.
Real estate investors looking to make quick dollars are smart to scavenge the foreclosure markets, learn all there is to know about short sales and how to facilitate such a purchase.