I talked to an investor today. Not just any investor, one that I actually like. I think we'll work beautifully together.
You see, with home prices as low as they've become, it seems that just about Everyone "wants" to be an "investor." They just have no idea what that means.
I'll tell you what you need to do BEFORE you're actually an "investor."
- Sit down with a real estate agent. We do this for a living. You're most likely doing this as a hobby. We'll guide you through it, explaining the process along the way.
- Determine price ranges. Don't tell me to send you every listing in Metro Detroit between $10,000 and $250,000. It's not gonna work.
- Talk to a lender. Depending on your finances, you might even need to talk to a Hard Money Lender. This means that you're going to have to put something up for collateral. Something Real, like your current house, boat, cars and/or 401k.
- Determine how much work you actually want to do. Some "investors" buy a house, put in new carpet and paint and viola! They want a 40% gain. Again, it's not gonna work.
- Make sure you can handle it. I see and hear stories all the time about people going way into debt to become an "investor" and having their whole plan fall apart. It's a risk. It can be expensive if you make a mistake. Stress is a major reality is this "investor" game.
Trust me, I see it all the time.