Today I want to talk to you about how to get a great investment deal. If you’re looking to flip a property where you buy a property for low, fix it up, and sell it for a profit—or, if you like a cash flow property where you buy a property and you make money on a monthly basis (where the rent payment covers more than the payment). I’ve got a simple formula for you. This is going to save you probably tens-of-thousands of dollars of going to a guru to find out how you do it. It is really quite simple. I’ve done a ton of these myself. As a matter of fact, I have been very successful with flipped properties and rentals.
So, the first thing that you need to do is that you need to know your numbers. Your numbers are going to tell you everything. You need to know how much money you are going to make. For example, “I want to make $20,000 on a flip,” or, “I want to make 25% above my payment a month on my rental property.” Sometimes, cash flow doesn’t really matter when you get into taxes and all of that stuff. So you are going to have to do some math.
The next thing you need to do is you need to pick your areas and know where you want to buy. So, you know your numbers, you pick your areas, and the next thing is quite simple. You start making offers.
So, these two things right here (numbers and area), then making offers is simple. I’ve had investors where as long as the property hit the numbers we might make an offer prior to even seeing the property just in case we can get if we are having the low ball. But sometimes, if it is listed right there is just no question.
Okay, so, once you do that, you make your offers, you get one accepted. Then you got a deal, and you go on to the next one. It can be simple as, “I want a 3 bedroom, 2 baths, in Fort Collins, under $140,000 and it has to be North of Horsetooth.” So, if that comes up on our radar, I can literally say, “Hey, here’s one we need to make an offer on.” If we have time to look at it, great. If we don’t, why don’t we just throw one in, and just pick it up in the next couple of days where we can go through on the inspection and just find it (find out if we want it or not).
Hopefully, that helps if you are looking for an investment property. Thanks a lot and have a great day.