In the world of real estate investing, homework and due diligence is key. Something a lot of people do not understand or know because today’s TV shows about REI really do not show the boring, countless hours REInvestor have to sit and run numbers and demographics prior to a good REI.
While some of these TV show do show a little of what real life is all about, most only show the good parts of a REI transaction. Most dont even touch the issues with pulling permits, liens, and many other steps involved during every REI transaction.
Make sure that prior to your next REI, you:
- Scan for great deals. Make sure your viewing potential properties daily. Doing the numbers, making sure they make sense and are solid.
- Research the property and its current conditions. Is it under stress, does it have any loans or liens.
- Makes sure your exit strategies meet the current REI.
- Make sure you will be able to complete the rehab or remodeling project.
- How much cash flow does the property produce, should you need to hold for long term.
Just like the board game Monopoly, REI takes time to play it… you have to walk the board a few times before you can know which properties are the right ones for you. But the key to the game is homework. The more you do, the better REI you will make.