Written by Rob the Watergod | 1/26/21
First off, 89% of people today became wealthy through Real Estate. In fact, Real Estate is one of the best ways to become wealthy. However, It can take about six months to start making money as a real estate agent. A major reason why most real estate agents fail is that they are not willing to put in the work. If you want to be successful, be prepared to work long hours. You don’t need to invest big to start making money with real estate. In fact, you can put in as little as 15% of the total sum of the investment. Now let’s get into how to start your Real estate career.
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Start With A Property Problem
Most importantly, you should start with people who have problems with their property and need a solution, don’t worry about what the big investors are doing. On the other hand, you should start with people who are behind their mortgage, having a divorce, or inherited a house they don’t want, and people that have issues with their property. They will be more willing to accept your help. The best way to help is to have investors that will solve the problem with their finances that will help all parties involved. For example, let’s say they want 100,000 dollars for you to have the house under contract, and then you would say “hey investors I have a $105,000 dollar house for you”.
Wholesaling
Firstly, wholesaling is where you find property that is below market value, you get the property under contract and sell it for a higher price. Here is how you calculate the price. There is a calculation Real Estate investors call MCO (Maximum Cash Offer). The calculation of Maximum cash offer is 70% of the ARV – repairs. Moreover, the ARV is your After Repair Value, the ARV is what you think the price of the house will be after it is all fixed up and ready to go. Here’s how to find the price of the house. Let’s say their house is four bedrooms and two baths if the price for four bedrooms and two baths in the neighborhood is 100,000 dollars then that’s your ARV. Therefore, 70% x $100,000 dollars is $70,000 dollars, so $70,000 is your ARV.
Furthermore, the repair cost is how much money it will take to fix the house. Let’s say the repair cost is $5,000 dollars, take away $5,000 from $70,000 and you’ll get $65,000 dollars so the MCO would be $65,000 dollars.
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Establish business credit
First, you need to be able to tell the people what you’re going to do with the money. Usually, before you get the money they ask what you are going to do with all the cash they’re giving you. Let them know you are investing in equipment or assets that make money. However, you also have to talk about how are you going to generate revenue from the purchase you will make. Finally, how to get the money. Grants.gov is an E-Government initiative operating under the governance of the Office of Management and Budget. This is a site where you can apply for grants and loans. You’ll be surprised at how very few people apply.
N.A.S.E.org (National Association of the Self-Employed) is also a site to get grants and loans. It is a nonprofit organization that provides resources to self-employed individuals and micro-businesses. N.A.S.E works with thousands of micro-businesses across the United States. Accion.org is a community development institution. They lend money to people with a credit score as low as 525. S.B.A.gov (Small Business Administration) is a United States government agency that provides support to entrepreneurs and small businesses. Is an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise, and to maintain and strengthen the overall economy of our nation.
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Start Marketing With Property Solutions
Once you have done all of the steps, it’s time to start marketing. For example, start putting out signs, letters, and advertising your business on social media. Marketing is one of the most important steps when it comes to Real Estate. Your business needs to reach people when they are having financial problems. The more people you reach the more you can help. In addition, having at least seven marketing revenues is the best strategy to reach the most people.
Conclusion
In conclusion, investing in real estate can generate tons of money but at the same time, it requires time and effort to be profitable. For any business to succeed you need to be around successful people. Quality Standards Property Management is who we work with and their the best in the industry here’s a link so you can get a free quote for Real Estate agents and investors.
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