HOW DO I GET A GOOD DEAL?

This question is asked just about every day. The problem is that both “good” and “deal” are undefined terms. Like beauty, a “good deal” is in the eye of the beholder. If you are a first time investor, risk adverse and are looking for a single family home that will cash flow, then there are currently very few deals that you would be able to consider “good”. Change or delete any one of those parameters and the deal might be considered “good”. What we see on a regular basis is either a buyer who wants to invest almost no money and buy a property that delivers cash every month, or a buyer who wants to buy a property and sell it for a profit before the initial contract has closed escrow. We have seen these things happen, but they are isolated events and not something that an investor can plan to find as a steady diet. So how do you find a “good deal”? First, you should spend as much time as possible understanding the investment that you intend to make and define your personal goals. Second, add a management plan, investment plan, an exit strategy, and redefine it as your business plan. Third, contact a real estate professional in the community where you wish to own real property. Ask for a free consultation to discus the viability of your plan. It is not likely that your first business plan will work, so be prepared to modify your plan based upon the actual market in your selected community. Investing in real estate has been an enjoyable and profitable endeavor for me for over forty years. I lease properties, flip properties, owner finance properties and, in general, do what seems to be the most sensible thing to do in any given market. Keep in mind that I have also lost money on a few of my deals as well. There probably are no risk free deals, but almost all transactions can have fewer risks with knowledge and due diligence. Good luck! Contact me at ask@capitolarearealty.com to discuss this opinion.