4 Types of Houses You Need to Look for to Exponentially Increase Your ProfitsPosted on February 28, 2014 by
Last month I mentioned I had discovered that every property I drove past was one of four different types of houses every investor needs to be able to quickly recognize if they want to increase their bottom line every year. This month I will explain two types of houses that can really increase your income every year.
I struggled for years to find properties that would allow me to make enough money to feed my family and pay my bills. I had no idea what I was doing or what I was looking for. All I knew was I was trying to buy any house I could find just to make money. I struggled to figure out what I should look for so I started buying houses that I could fix and sell retail. This was a good idea but I could only do a few of these houses each year because I did my own rehabs at that time. It was taking long periods of time to fix and get every property sold and I kept running out of money. It was always a struggle to pay the bills each month. I wasn’t getting checks from my closings very often. All I could do was try to buy houses I thought would make me the most money.
Several years later I had to step back to see what I could do that made more sense and would allow me to make more money. Finally, after 20 plus years in the business I figured out that every house I drove past had a potential profit in it. All I had to do to make a profit was get the sellers of every house to sell me their property. Once I discovered the four types of single family properties is when the money started to come in faster and easier. I built a buyers list of investors who buy the properties I found
The first type of property is “Houses that are in some stage of the foreclosure process and REO’s (real estate owned) property owned by Banks”? There are many of these properties everywhere you look that are upside down with mortgage balances greater than what the properties are worth today. The problem with these properties can only be solved by doing a short sale or buy the REO’s from the banks paying cash for those properties. Cash is in most cases the only way you can buy these properties. I was one who didn’t have cash and was finding it nearly impossible to do Short Sales. They took too long and are not easy to complete. If you don’t have access to money this type of property will be hard to profit from but that doesn’t mean you won’t be able to make a few dollars passing one of these deals on to someone who has cash and does this type of deal.
The second type of property is “Houses YOU Don’t Want”. Let me ask you, have you ever seen a house that you wouldn’t want for yourself? Just because you wouldn’t want to own any house yourself, why wouldn’t you want to make a profit from that property anyway? Why wouldn’t you want to profit from every property you see, especially if you already have a buyers list of investors who buy those types of houses. Investors who are comfortable buying less than perfect houses located where most people who can qualify for a loan might not choose to live. Properties better suited for landlords.
These landlords might want this type of property assigned to them if you pass on a good deal where they can make money and are willing to pay a fee for the deal? To buy these properties doesn’t take money or credit to get control. This is the type of property where you can make money you would never have made if you didn’t have your eyes open to the opportunity. Don’t exclude this type of property from your business. These are the type of houses many investors who wholesale are looking for. This can give you an opportunity to make money even if you have no money or good credit. The key to success with this type of property is to have several buyers for this type of house on your buyer’s list. A smaller check is better han no check!
Next month I will show you the other types of property you need to look for.
Good Luck, Happy Investing