We are no longer in the world of inflated prices, inflated appraisals, and banks lending money just because someone asked for it. However, many of our investors are making tens of thousands of dollars in profit on every house they sell.  

Don’t misunderstand me. If you are careless and do not do your homework, you can lose a lot of money. You need an attorney to guide you, a Real Estate agent/broker who can inform you about the area, and some knowledge of the area. However, if you put together a good team of people to help you, there is money to be made. Here are my suggestions for how to invest wisely in Real Estate in the new economy:

1.  Get a good crew and don’t be afraid to get in there and get dirty.

You need to have a contractor that is dependable and insured. You need to be able to count on them to work quickly and efficiently. Ask for references. You also need to get into the house and get dirty. Make sure you stay involved in the construction process so you can have the house “buyer ready” as soon as possible.

2.  Find a hard money lender.

A hard money lender will make this process go smoother. You are going to pay more interest than you would with a conventional loan; however, you will also receive the money quicker and once you have gone through their background process, you don’t have to do it again. Once they give you money, they almost always will give it to you again and again.

3.  Hire an attorney who handles these types of transactions.

You do not want to be represented in these types of deals by an attorney who does Real Estate “on the side”.  This needs to be their primary area of practice so that any and all issues that arise can be handled quickly and efficiently.  Remember, the idea is to move the property as quickly as possible.

Not every house is going to be a winner.  You are not always going to make thousands of dollars on every house. Even the most seasoned investor has properties that wont sell or don’t sell for as much as they want. The trick here is quality and quantity. Investors need to move more inventory and create beautiful homes.  

If you are going to give investing in Real Estate a try in this new economy, make sure you talk to a seasoned professional and ask as may questions as you can. There is no price on experience.

The risk is high but the reward is great.