"A little less conversation, a little more action, please ..." ~Bret Calltharp
Real estate is not rocket science once you understand the mechanics of the markets you operate in and how to make money on a deal, but it is still NOT easy. To reach the top of your game it will take dedication, a sharp learning curve and the ability to let the hard knocks roll off your back. Because every real estate mogul from Donald Trump to the top agents in the country today know that not every deal is a money maker – some are just learning experiences that you use to do better the next time.
While you may already have your foot in the door with a real estate flip or two, the real estate investors who are really bringing in the bacon are turning over multiple houses each month – bringing in considerable cash flow but also holding considerable overhead on their large project load. But let’s start small. How do you get to your first, second and then third flip without going belly up? Here’s the insider’s guide to fix and flipping homes the smart way.
Step 1. Prioritize your spending.
If you want to buy real estate assets in order to make money on them, the perception is you need a chunk of your own change to get started. Many of our entry level investors come into their first deal with the idea that they need to put up their own credit, personal collateral and assets in order to get funding. This is simply not true here at Center Street Lending. We evaluate the strength of each investor’s business plan, the market conditions, the team they bring to the table and a variety of other factors to quickly and efficiently assess the risk for us to lend to them. We often do this entire process in less than 1 week to ensure investors don’t miss out on a great first opportunity they’ve been eyeing.
This non-asset based lending model is a unique hard money loan product that we pride ourselves on being able to provide to investors who need capital to get going. It’s easy to secure funding if you’ve been successfully flipping homes for several years and can prove a portfolio of projects that have made money – it’s not as easy to secure the capital to buy a property and the extra money required to renovate it without that track record. That’s what we specialize in here at Center Street. We know the business and a good bet when we see one. Call 949-244-1090 to discuss your loan options with an expert loan officer at Center Street Lending today to get started.
Step 2. Plan your day ahead each night.
This is just a solid business building strategy used by top entrepreneurs around the world. Planning ahead and creating a flow for your day is the best way to ensure you’ll get the most important items checked off your list. Starting your day with a cup of coffee and an ‘idea’ of what needs to happen is a recipe for an unproductive day.
Step 3. Get your real estate license.
This will count as an expense at first, but will help you in a numerous ways as you get going. Yes, you may just want to invest and flip properties and hire a realtor each time to market and close the sale. That’s fine. But what you’ll gain from becoming a realtor is access to your local MLS to scour for listings, a deep understanding of your state’s real estate laws and best practices to keep you out of hot water, the ability to network with other real estate professionals and tap into their investor networks, Etc. The BENEFITS of being licensed and truly knowing your business are endless. So go out there and get that license!
Step 4. Refocus your day’s priorities at noon.
Planning your day the night before is great, but it’s just that — a plan. Things happen throughout the day that will throw you off so it’s important to do a mid-day check in and reprioritize so you can continue to stay productive the rest of the day. The key is to get back on track. Know your goals for the day, and make sure you have them prioritized. You want to do the most important things first and leave the ‘extras’ for later in the day when you find the time.
Constantly ask yourself these two main questions:
1. Can this be done tomorrow? If so, then stop doing it.
2. Is this what I planned to do today? If not, then ask yourself if it helps you buy more real estate. If the answer is still no, then stop doing it.
There is no magic bullet or formula you can use to instantly become a top real estate investor. Building your business, finding the right opportunities and putting together the right team to make it all happen will take time, luck and ingenuity. However, there are many “best practices” you can implement that will greatly improve your chances of success. We hope these top 4 tips will help you get started building your real estate empire today!