Making Money in Real Estate: Can it be done?

cheesy sales guy

(photo credit: this is what comes up when you type in cheesy sales guy into google images)

What Guys like Trump know that we don’t

Let me paint a picture for you. This guy and his late 30s comes into the store Buys a flashlight and some batteries. He’s standing in the checkout line for quite a while all the while I’m just wondering why he isn’t in the “ten items or less” line.  When he gets up to the cashier there is the typical small talk that happens with almost any transaction. But he said something kind of interesting that is worth mentioning here. He said that he was buying the flashlight so he could see inside of an attic of a house that he just bought. Apparently he’s a professional flipper.  Do you know what that is? He buys these houses and then renovates them and turns them into profit. The way he acted indicated that he really loves what he does.

The question in my head?

Can you really make a profit in real estate these days?

I’ve began to research on my Mac computer when I got home. I think I watch hundred and 40 YouTube videos and read through about 15 or 20 different blogs from gurus saying you can make a ton of money in real estate.

I actually came across pretty cool site that talks a lot bout the gurus. You can check it out here. But overall my consensus is the following:

It seems to me that a lot of the banks and other people involved in the real estate sales process understand the potential profits of a home. At least that was what happened the last time that I went with my mom and looked at “bank owned” homes, Mom felt like the banks were crazy.  They seemed to want to demand top dollar for a property that need quite a bit of work.

So she eventually found the best work around… hire the right real estate agent. Make sure that the real estate agent has information about the market and understands what investors will be looking for.

That’s where it got interesting the guy in line told me… if you go with the classically trained real estate agent they may not be able to serve you well in this case.

He said, “Tell your mom my recommendation is that you look at properties that are at least 30% undervalued in the neighborhood because of some advice or issue that needs to be resolved with the property.  Usually it has to be something bigger than simple cosmetics. The cosmetics go to a lot of people that are interested in flipping homes. You must look at things like a toilet filled with concrete. Those are probably going to be deals that are a little bit more closer to home as far as being able to flip them for profit.

You want to deal with the problems nobody else wants to deal with.

One of the key components of having a successful flip practice, is simply to have construction workers that you know well and will work well with you.

To me it even seem like a construction workers understood how much value they were adding to the property and so they wanted to charge a premium make sure that you get several quotes in order to drive the price down for the work that you’re getting done.

One final note is that a lot of times you can hire construction workers that do you write on two or three jobs and then on the fourth job or simply distracted by something else. This is where they are quality work ends. Remind full of this. It seems to be a natural occurrence in the construction community.”

It was all a little over head, but I listened to everything he said and told my mom.