If you decide that you want to get into real estate investing full time and be successful in it, or even if you want to be really good at it part time, then you have to build systems, effective systems for everything.
All of us run into a situation sometimes when we believe to have good deal on hand but cannot get any money to make an offer on the home. This is after one called everybody one could think of – hard money lenders, banks, family.
Most of the time, the banks set a price on properties too high because they are in the business of lending money, not real estate, and as a result often they do not have a good understanding of the real estate market. Also, most banks are large, they have specific policies on dropping the price on a property based on how long it has been on the market.
To be successful in the rental house business I have a few tips for you. First you need to do some research on where rental homes are needed.
Have you ever heard of this idea?
Obviously the first question is how to get around the assignment clause that most banks have in their contract. What I do now, since I flip so many deals, I either double close or I have multiple hard money lenders that give me access to the money to wholesale my deals even if I have to close on them before I actually sell them.
Let’s look at the situation where you are looking at a REO listed at 25k and they have just come down from 29k. The bank most likely did not really look at it because it isn’t worth that much. The house is in bad condition and would have to be gutted to rehab; the only good part of the house is the structure. You don’t want to rehab it yourself but you would like to make a low ball offer on it to flip it.
There are times in your life when you have to make decisions that others may question you on in order to change your future.