As a hard money lender, I have deep respect for the hard work and hundreds of hours our borrowers put into each of their rehabs. Some of that work is exhilarating – think about getting that contract signed, especially when the price is right! Some of it is tedious – pushing through the county bureaucracy and dealing with inspectors. Some of it is downright maddening like when your contractor is dragging his feet or slams you with a change order. When all this hard work is done and your property is about to go on a market, we know you feel like breathing a sigh of relief. But wait. You’re now facing your final challenge – pricing your property right.
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To be a successful investor you have to be a good marketer. Being a good marketer might mean different things to different people. For example, in real estate investing it might mean that you are cultivating a network of agents to dig for deals that fit your criteria. Alternatively, you might be a real estate auction pro investing time and effort bidding against other investors on the court house steps – hopefully wearing thermal underwear in winter. You might specialize in HUD properties and score good deals by watching your prospective deals like a hawk. Regardless of what you do, the outcome needs to be the same. You need to have enough marketing skills and real estate expertise to generate a consistent flow of quality leads.
As a hard money lender in DC area, I believe that there are two key areas that every investor should continuously work at. The first one is how to make money. It includes how to find good deals, how to manage your rehab process and how to build a good team that will propel you forward. The majority of your time as a real estate investor should be spent on tweaking, improving and learning from your success and mistakes in this area.
Recently we’ve been getting many phone calls from rehabbers looking for an alternative to their current hard money lender. Curiously, the reason for wanting to switch is almost always the same. These borrowers are tired of dealing with an out-of-state company and want to work with someone local.
What separates newbies from weathered rehabbers? What are the key differences between investors who can consistently turn solid profits by flipping homes and someone who is chasing a dream, even if it’s a pipe dream? As a hard money lender, I have some telltale signs of a real estate investor who is still has some maturing to do.
Lead generation is the backbone of real estate investing and of any other business in general. In our 10+ years of doing business as a hard money lender, we’ve had an opportunity to see many investors succeed using drastically different strategies. This is why today we are introducing a new blog series on finding deals in real estate. Each article will cover one potential strategy of uncovering investment opportunities and running with them. The goal is to give you actionable ideas on how you can take those strategies and adapt them to your own style of doing business.