Real Estate Success with The 4 F's

Interested in investing in real estate? Let us break down the essentials of the four F's in real estate investing.

1. Finding Property

•  Bird Dogs: Train a college student or retiree to scout properties that meet your criteria.

•  Drive-By: Keep an eye out for vacant or neglected properties while running errands.

•  Bank REOs: Local real estate agents often sell foreclosed properties.

2.  Deal or Dud

To evaluate a deal:

• Repair Costs: Estimate the cost of repairs.

•  After Repair Value (ARV): Know how much the property will be worth after fixing it up.

•  Selling Price: Compare this with ARV to see if it is worth your investment.

3. Funding Deals

•  Hedge Funds: These are pools of wealthy investors looking for unique opportunities.

• Partnerships: Bring in a partner with money and credit while you provide a solid deal.

•  Owner Financing: Negotiate directly with the current owner to finance the property.

4. Flipping Deals

• Wholesale: Sell the property quickly to another investor.

• Assignments: Secure a property under contract and sell the contract to another investor for a profit, typically $1,000-$5,000.

•  New Construction: Get in early with pre-construction deals at a 30-40% discount.

By following these carefully outlined steps, you will be equipped with the knowledge and skills necessary to navigate the complexities of the real estate market confidently. Whether you are a first-time buyer, seller, or investor, these steps will guide you to make informed decisions and achieve your real estate goals.