Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home1/haradeep/articleside.com/configdb.php on line 8

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home1/haradeep/articleside.com/article.php on line 88
How to Buy Houses at the Right Price for Real Estate Investing

Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

How to Buy Houses at the Right Price for Real Estate Investing

By Simon Macharia Subscribe to RSS | January 3rd 2012 | Views:
loading
 
  


In real estate investing, buy low sell high is a very common expression. As simple as it may sound, it is not always easy to buy houses at the right price.

Whether you plan to sell your houses immediately or keep them for cash flow, your buying price must be low enough to make you profits.

So how do you get the best buying price when buying your properties?

A few years ago, it was not un-usual to buy a house at 80 cents on the dollar and wholesale it for a tidy profit because the market supported it. In fact, you always expected the price of the house to go up within a few months.

Currently, when you buy a house, you should expect the price to go down. Almost every home owner has lost some equity in the home in the last one year.

This means that when you buy a house, you must consider this fact. Wholesale properties currently go for 60 to 65 cents on the dollar minus repairs.

Also, tenants have become more choosy since there are more houses to chose from, and are likely to go for a house with a pristine rehab job.

This has made rental prices more competitive.

Even though there are more houses for sale than any recent past, you must let the seller know these facts.

So whenever I am talking to a seller, I let them know that even though it seems to them like they are leaving a lot of money on the table, I have to spend my time and money fixing it up, then I have to sell at a deep discount.

And chances are that I might be unable to sell it at all in the current market.

I let them know that it might take months before I can sell it in which time most of my profits will be gone. When most sellers understand these facts, most of them relax.

I like to make this clear before I can make an offer. Even though motivated sellers really need to sell their houses, they do not like to feel like they are being taken advantage of.

My offer then easily gets accepted even though it is low.

Why is it necessary to explain all this?

Since you have to sell houses lower than we used to a few years ago, you must buy them lower to make money.

You must do this also if you buy properties on terms, such as lease options. You must remember that even though the price for properties that you buy on terms is usually higher, it must still be low enough to cater for the facts above.

This way, you can still sell it at a profit in a year or two even if the market remains poor.

Simon Macharia - About Author:
Find out how an automated real estate investing website can attract, pre-educate and deliver motivated sellers fully pre-screened and pre-negotiated so you close more deals using less time, money and effort.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/real-estate-articles/how-to-buy-houses-at-the-right-price-for-real-estate-investing.htm

Related Real Estate Articles Subscribe to RSS

Useful tips and guidelines on real estate investments
Published by Adrian on July 30th 2012 | Real Estate
People who are not experienced and inactive in the real estate business, the process of selling and ...
 
Real estate marketing is essential
Published by John Mathews on August 4th 2012 | Real Estate
In the real estate business, marketing is very essential. The more effort you put in with your marke...
 
Explore real estate companies for housing accommodations
Published by Abhay Singh on December 30th 2011 | Real Estate
We have to move to many places in our entire life span, sometimes in search of better education, som...
 
Playa Del Carmen real estate – the right buy for Retirees?
Published by Tom Budniak on December 27th 2011 | Real Estate
Whenever a retirement destinations of international quality are discussed, one name that features am...
 
Some tips to choose the best estate agents in Canary Wharf
Published by Glyn Jones on April 7th 2012 | Real Estate
One of the easiest ways to find a suitable agent is to search online. Firstly it will help you to sa...
 
Some important legal formalities in real estate Malaysia
Published by Rick Foster on January 28th 2012 | Real Estate
Once an agreement is reached, the papers and documents are prepared that are then signed by both the...
 
Bangalore patrons looking for higher returns in Real estate with no risk
Published by Prop Tiger on June 11th 2012 | Real Estate
The stock markets tanking and therefore the rupee depreciated against the dollar appear to be daily ...
 
Central London estate agents see strong international demand
Published by John M. Alcorn on February 18th 2012 | Real Estate
Despite a general slowdown in the UK property market, central London estate agents are still witness...
 
The real winners of Euro 2012: Poland and Ukraine
Published by Bettina Azaria on June 20th 2012 | Finance
There were expectations that England will come out as victorious were on an all time low, but whatev...
 
Benefits of hiring an experienced real estate agent
Published by Deepti on April 17th 2012 | Real Estate
Selling or buying a home is probably the most significant financial decision that an individual make...
 
Options for a real estate
Published by Loo821ql on February 26th 2012 | Real Estate
If you are learning how to be a registered realtor or simply would like to know more about real esta...
 
Real estate in India an ideal destination
Published by Deepti on April 17th 2012 | Real Estate
The real estate of the country significantly contributes to its economy. The Indian realty contribut...
 
Need of estate agent in real estate investment
Published by Glyn Jones on December 20th 2011 | Real Estate
When you are looking for some property dealings, there is need to consult some very good estate agen...
 
 
Lease/Tenancy options for better dealing in real estates
Published by Jane Cyrus on February 13th 2012 | Real Estate
One of the best options of doing property dealing is a Leasing. With help of this beneficial option,...
 
Mohali: a viable option for residential real estate investment
Published by Neha Gupta on May 11th 2012 | Real Estate
These days, numerous people are making investment in residential real estate sector. If you are seek...
 
Booming real estate industry in India
Published by Deepti on May 10th 2012 | Real Estate
The real estate industry has been flourishing in the last couple of years. If you wish to buy a home...
 
Beverly Hills real esBeverly Hills real estate agent is simply the finest picktate agent is simply the finest pick
Published by Jim Corbet on June 7th 2012 | Real Estate
Beverly Hills real estate agent is considered to be the best when it comes to offering the finest de...
 
Gain more insight on making investment in real estate
Published by Mike Nicholson on January 30th 2012 | Real Estate
In this article, I will explain the basics of real estate investment. Let’s start with the definit...
 
Economic real estate deals and estate agents
Published by Glyn Jones on December 3rd 2011 | Real Estate
The online estate agents turn out to be an economic alternative with reality dealings but they being...