Top 3 Secrets That Every Investor Should Know When Purchasing Real Estate

Pssssst….are you listening? Are you ready to learn about the top 3 secrets that every investor should know when purchasing Real Estate to either buy and hold or flip in Southern Maryland? Well, guess what?! There are no “real” secrets, just best practices, so let’s get started.

Best Practice #1: Partner with a Real Estate Brokerage that specializes in REO, Foreclosure and/or Short Sales.

Partnering with a local Real Estate Brokerage that specializes in REO and Foreclosure listings is a great asset to have in your toolbox. Deals can be found all over the internet, but a partnership with a brokerage that specializes in these types of listings can save you tons of time and effort searching. DNS Realty Group specializes in these types of listings and have dedicated Agents that are well-versed in the process and the dos and don’ts of such unique transactions. Do not waste your time and energy searching for deals when they can be delivered to you by a dedicated REO Agent that understands the process and can get from contract-to-close. Your return on investment (ROI) should be your REO Agent’s primary focus and they should know and understand your needs as an Investor and provide the services you require to make the most of your time resources. 

In addition, your Agent should be able to provide you the details on the True Market Value of a potential deal without you having to hire an appraiser for each and every potential deal. The appraiser has their place in the process, but when you are in the beginning stages of seeking deals, spending resources on Appraisers to help you understand the value of a property means that your Agent does not possess the knowledge to truly assist you in the best way possible and it may not be in your best interest to keep that Agent on your Success Team!

Best Practice #2: Have access to Vendors that know the area Real Estate market.

Every Real Estate market has its own set of rules and differing trends; what may work in one market, may not necessarily translate into success in others. Seek out vendors/contractors that know and understand what will result in the most bang for your buck. Of course location. Location, location is your primary focus, but your secondary focus should be to understand what the surrounding properties possess that will result in the types of tenants you are seeking, if you are looking to rehab and become a landlord. Rehabbers in the area use quality finishes that provide their tenants with a home that they will enjoy for years to come and result in lower maintenance costs for the landlord. Some neighborhoods may require higher-end finishes based on the type of tenant in a particular neighborhood, so knowing your desired tenant and the neighborhood ROI is a key aspect in becoming a Landlord.

Local vendors are key stakeholders in the success of your Real Estate investment property. If the property is a rehabbed property, your asset will be much more attractive to a buyer or renter. If you seek out cheap vendors, with no record of success or vested interest in a long-term relationship with you as an investor, be very wary that the money you will spend today will cost you far more in the long-run with repairs, maintenance, time and your overall reputation. This best practice again has to do with partnering with the right team to help you get the job done the first time and making you a long-term investor.

Best Practice #3: Know your long-term and short-term Real Estate goals.

Real Estate investing is not a get rich quick scheme or an overnight success story waiting to happen. Real Estate investing requires focus, dedication, resources and the right team to maintain your priorities and goals. What are your short-term and long-term goals and what do you need to make those goals a reality? Do you have the resources to make that happen? Do you have the right team in place? Are you prepared to make adjustments along the way to make improvements on your goals? Do you know your numbers, both real and perceived-this is very important!

Plan for the future and know that Real Estate Investing can be a lucrative addition to your goals if done properly, with the right focus, knowledge and team.