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

Online estate agents can help with real estate investing
Published by Glyn Jones on December 11th 2011 | Real Estate
When you are to find the property for sale or rent or want to sell your property you can simply refe...
 
Online estate agents to sell your property
Published by Matthew Watson on April 29th 2012 | Real Estate
Using an online estate agency will allow property owners to perform the majority of the sales proces...
 
Consult an expert only to ensure best real estate investments
Published by Jennytoedt on April 17th 2012 | Real Estate
Escalating estate prices have given good returns to its customers, provided the property has been ch...
 
Consult a reputed real estate dealer to know more about Temple TX real estate
Published by Sophiegeorgia on June 18th 2012 | Real Estate
Home buyers opted for panic selling which have of course opened up profitable avenues for buyers who...
 
Awesome place naples florida waterfront real estate
Published by Harry on June 19th 2012 | Real Estate
waterfront homes for sale in naples florida. This is a community that is highly sought after for go...
 
Rising demand of residential real estate in India
Published by Neha Gupta on May 9th 2012 | Real Estate
The demand of residential real estate in India has increased manifold in the last couple of years. T...
 
It’s time to go with real estate India again
Published by Mike Nicholson on May 4th 2012 | Real Estate
Those days are gone when real estate in India was not a lucrative sector. Today, it has developed in...
 
Real estate listing with Discount realtor
Published by Jim Shoun on May 3rd 2012 | Real Estate
How much do you understand the advantages of real estate listing as For Sale By Owner? Well, list of...
 
Growing demand of residential real estate in India
Published by Deepti on May 1st 2012 | Real Estate
The ever increasing population has made it quite essential for the real estate industry to take the ...
 
Rental property- its difficult to find without estate agents
Published by Matthew Watson on April 16th 2012 | Real Estate
A proper research of the property market, its trends and different rents in different localities nee...
 
 
Investment in residential real estate
Published by Deepti on May 7th 2012 | Real Estate
Making profitable investments in residential sector of the real estate needs much hard work and dili...
 
Port Washington real estate brokers are professional enough to handle your requirements
Published by Jack Smith on June 19th 2012 | Real Estate
People get confuse while dealing with home purchase, so contact Port Washington real estate brokers ...
 
Want to buy Miami luxury homes? Get to know luxury real estate miami business
Published by Angie Turner on May 25th 2012 | Real Estate
Envision a stifling location with tall palm trees; sun flounced white sandy shores and several class...
 
 
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,...
 
Why you ought to Buy a home in Bay Location Real estate Like Walnut Creek, Brentwood and Antioch?
Published by Yurem on January 3rd 2012 | Real Estate
As a result of continuing economic situation worldwide the values of bay area houses for sale may be...
 
California Real-estate
Published by Fawad Umair on June 30th 2012 | Real Estate

When you get that loan or dealer, you can first want to get the right residence in perfect neigh...
 
Tips on how to make money on real estate foreclosures
Published by Shaz Memon on December 26th 2011 | Finance
Making money on real estate foreclosures is indeed a good idea. Get cheaper ones and earn good money...
 
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...