Offering what the property owner wants is one of the main mistakes an investor can make. Never forget that all sellers want to make as much money as possible. In real estate investing, it’s your job to pull their prices down so you can profit more from the investment. You have seen many other people who have been successful with real estate investing. A quick search on the internet reveals tons of inspirational stories about real estate investing. However, only a few of them actually offer you lessons on how to profit from real estate investing.
In this article, we want to buck that trend.
We’ll share the story of a couple investors who put in the work and uncovered some great opportunities. We’ll also share some lessons you can take away from their success.
Janet and Nick wanted an investment that would earn them a Six-Figure Return.
They had spent a while looking for properties in Singapore. They had gone through the property listings and nothing had piqued their interest. So they contacted some good real estate agents and managed to get some good viewings. It’s a good thing they did, because in the end, a great property presented itself to them.
The property was an estate with a list price of $1,580,000. There were three beneficiaries, two of whom were still living in the house.
This presented an opportunity for the couple. Estate prices are usually negotiable when the money received is divided several ways. Janet and Nick took advantage of this fact to make an offer for less than the sale price.
However, they went about it a little differently than most.
The property would have been auctioned in May 2016, just before June Holidays. Most investors would rather wait for the auction, hoping to get a bargain. But Janet and Nick knew they had a chance and bid $1,525,000 before the auction.
Importantly, that offer was subject to building and pest appraisals.
These reports showed that the property was severely damaged. As a result, the couple lowered their bid to $1,510,000 to account for the necessary structural work.
This story has probably given you some insight into how to become a successful real estate investor. You can see that Janet and Nick did everything they could to secure their purchase for less than market value.
They also made their offer contingent on several inspections. This allowed them to lower the purchase price even further.
Both are great lessons for anyone looking to successfully invest in real estate.
But there’s more to the story that we haven’t shared with you yet. Here are three real estate investing tips you can learn from Janet and Nick
Tip #1 – Find a good real estate agent.
By sharing the couple’s story, Nick revealed how important their realtors have been:
“There are some really mediocre realtors out there. But we’ve found two different realtors who are top notch and go out of their way for us. They know what we want.”
There are two things you need to know when it comes to real estate agents.
First, you want the best ones you can find in your corner. These are the people who will understand what you want and can help you get it at the right price.
Second, you want the mediocre agents to be in the seller’s corner. This gives you the ability to control the negotiations. And it also means you’re dealing with a seller’s agent who is more concerned about making the sale than doing what’s best for their client.
Tip #2 – Build a Strong Network of contacts.
What we didn’t tell you in the story above is that Janet and Nick didn’t buy their property on their own. In fact, they were not in a position to buy anything on their own.
Instead, they worked with money partners to make their investment happen. And as Janet explains:
“I wasn’t able to find one who had all the money. But I was able to find six who had some of the money, and that was great.”
It just goes to show how important it is to have a strong network around you as a real estate investor.
When you need a money partner, it’s your network that usually reveals the right person for the job. And if you have a great network, you can secure multiple partners when you need them.
Simply put, your network gives you more options. Not to mention the opportunities that people in your network can give you.
Tip #3 – What doesn’t work for some may work for you.
We’ve already mentioned how Janet and Nick bypassed an auction – something many investors wouldn’t do. However, it’s also worth noting the time period in which they bought.