Real estate deals require a healthy amount of work and education to transpire. However, how much effort should be put into real estate deals before they are considered a waste of time?
There seems to be a huge disparity among real estate investors. On one end, there are those that seem to hold onto every lead for dear life. On the other end, there are those that shoot down properties in rapid succession, demanding only the widest spreads possible. So which real estate deals should you be considering?
How much work should you be willing to put into a subject property before it is no longer a consideration? familiarize yourself with the following tips to prolong your real estate career:
Knowing When To Move On
It isn’t actually that difficult to generate a lot of real estate leads. From direct mail to cold calling, email, internet marketing, outdoor advertising, crawling bank records, and even just the MLS, it can be quite easy to attract huge numbers of inquiries. Of course, that doesn’t necessarily mean that every one of them is a winner.
Even properties with extremely motivated sellers, homes with lots of equity, houses providing seller financing or no money down, and cheap foreclosures can turn out to be poor investments.
Sometimes the risk potential is just too great.
So when is it time to move on to more promising real estate deals?
Real estate investment opportunities are plentiful in today’s market. They are reliant on your chosen investment strategy, resources and investment criteria.
Browsing online real estate forums will reveal dozens of threads with investors desperate to figure out ways to make transactions work. Others are fast to dismiss their scenarios, suggesting a deal is not likely. Sometimes they are right, sometimes not.
Spend too much time on a deal and you’ll miss many others that could be even more profitable. Try too hard and become too emotional and you could be tempted to make terrible investment choices. Worse, some will push creativity to the point of committing real estate or mortgage fraud.
However, be too picky and you might do very few deals, or even perhaps never get off the ground. There has to be a balance.
Why Put in the Work?
If you are just looking for turnkey rentals to park your cash, then it’s pretty straightforward. Either the numbers work or they don’t. Or perhaps you are a wholesaler with an established buyers list with very precise and demanding criteria. However, smaller investment firms and individuals trying to grow their business must find real estate deals that fall within the Goldilocks category; not too much work and not too little work. Finding the balance is critical to success.
Those that will grow the fastest will be those who are willing to put in that extra work, take an extra hour to brainstorm or research solutions.
If you can find deals and solutions where others can’t, you’ll not only find easy to work with prospects and bigger profits, but also be providing an extremely valuable service to sellers, buyers and the economy.
In many cases, this approach means getting more deals done too. Sometimes it may mean taking a little less profit than others, but the total returns are made up for in volume and referrals.
Do the math, check the ROI on your time, total annual and lifetime returns and impact on your reputation.
