Real Estate Deal Making:

Another way to get great real estate deals is by pre tax sales. I am not interested in buying a property at a tax sell , but before it make its way to a tax sell. In the Memphis area, our local newspaper has a published listing of these properties that will be heading toward a tax sale approximately 4-6 weeks before the date actually arrives. The surprising thing to me is that when you start contacting owners of properties with delinquent taxes, some of them actually don’t know that the property was going to tax sale. PLENTY of time for me to make a deal with a motivated seller. Contacting them and explaining how you can help out their situation that needs immediate attention will have you looking like the knight on the white horse. Our Local municipalities cares absolutely nothing about the equity involved, they only want the tax situation resolved. What a win win situation, you helped  a home owner sell fast and bought a home with a significant amount of equity for pennies on a dollar.

Lethal Investing Mistakes

 I wanted to share with you all several common mistakes new investors make when buying real estate.
(1) Having no exit strategy and planning as you go: Many new investors look at real estate as a transaction instead of an investment strategy. You create value when you buy well below market, and make money when you sell. You must have a solid plan in place to profit from it. (2) Paying too much: You can not use the bank sale price to determine what to offer on a foreclosed home. We have been buying and selling foreclose properties for a long time, I am here to tell you that the banks list price may or may not have anything to do with the value of the home. Know the market value, take into account the amount of repairs needed and cost, what is my exit strategy, your offer should reflect real numbers and your built in profit.
(3) No resources: You have got to be working with a company that is in the know. You will almost never do a real estate deal if the company or person you are using relay on one source of information. I call them part timers. You can be a part timer, but the company you work with needs to be active in the market. The best deals are the ones that the public has no knowledge about.You can create wealth and solve problems by becoming a distribution center for people who need to sell fast, and buyers who are loooking for a great deal. If you work with the right team, they can save you time, money and minimize rookie mistakes.