We’ve all seen the “we buy ugly houses ” signs. Question is how do you actually buy ugly houses? And if you’re totally new at investing, how do you get your start-especially if the money’s tight?
1. Keep a look-out for ugly houses.
They’re not hard to spot. That’s because they actually are ugly. Have you driven past a neglected [tag-ice]house[/tag-ice] lately? Overgrown weeds, shutters and gutters falling down? Believe me, you’ll know one when you see one.
2. Contact investors who do have the money.
You will find them at your local real estate club. That’s where many of them hang out. They will also be the people behind the “we buy houses” bandit signs. Grab some phone numbers and make a few new contacts here and there.
3. Do due diligence.
What that means is be a [tag-cat]house[/tag-cat] sleuth. Some people, like [tag-tec]Larry Goins[/tag-tec], think this is the most fun part of investing because they love the thrill of the hunt.
For example, you know you’ve got a gem in disguise when you come across a vacant house which is a re-sold [tag-cat]foreclosure[/tag-cat]. An unfinished rehab job tells you something went wrong. The investor either died or ran out of money. Look at the stats. Know what he paid for it and the current market value. Then get a very good estimate on the repairs and any extra rehabbing that it will take to bring the property to market.
4. Set realistic goals you can reach.
This is the most important tip. Give yourself the latitude to learn and grow.
What exactly is a realistic goal if you’re just starting out? To get a sold sign in the yard of a formally ugly house.
So what if it takes you twelve months? You probably already have a regular job, don’t you? That first deal will make you an investor. But you need some time for your initiation trial period. After your first deal is completed you will have proven to yourself that it can be done. You can increase the speed of your deals as you become more confident with yourself and your contacts.
Good luck and good hunting.