Plan Your Projects then Work Your Plan

        There are those who will tell you that your money is made in the purchasing of the properties. I disagree; your money can be obtained and lost in every phase of your properties rehab. Those who claim that their money is made during the purchasing process are saying they have crunched their numbers and in order for them to make their goal they need to purchase the property at or below a certain value. These people have practiced and rehearsed their lines to persuade the sellers to agree with their terms and price. This is not necessarily the fair market value. How many times have you seen someone sell a property and someone purchase it and use it in a different manor and the property become much more valuable. If you have a property in mind that satisfies your vision you can pay the fair market value and still make your profit. You simply need to have a plan, a budget, and a team of experts in place or the ability to preform the task yourself. If you have the qualifications to preform the task needed for the rehab you can make your profit off your skills also.

If a go a store and I purchase some wood for $250 dollars I am not going to sell the cabinet I build for $350. The total of the material plus an hourly wage. If I sell the cabinet to a wholesaler, I will ask less than what I want if I set it in a property.

When preparing to become a real estate investor again take the time and trouble to find your property, preparing your plan with the projects potential task masters, then follow your plan. You will be given the opportunity to destroy your opportunity for profit throughout the project. What does it matter if you squeeze an extra $15,000 out of the seller if you then turn around and overpay your team members $35,000 You’ve still lost a potential of $20,000. When you are searching for your projects, you need to have a type of property and planed rehab in place.  It doesn’t matter if you are great at getting sellers to accept your low-ball prices if you can’t get the qualified craftsmen to preform their task within your budget.  A smart investor knows the market conditions and has an eye on the changes which tomorrows are likely to bring. Take the time and trouble to research and create a workable plan with your key players. Stay with in your plan and hold the craftsmen to the agreed upon task and budgets. Don’t be swayed by if you did this it could bring you an extra $10,000 in value for only $1,500 cost. The numbers don’t lie and they don’t play the “if” game. If can be a dangerous word to investors, if worms carried 45’s birds wouldn’t peck on them. The majority of your profit may be made purchasing the property. You may see a potential in the property no one else thought of. When Gas was first discovered it was basically the by product of the coal oil or carnosine industry. That is not how it is seen today because a few people saw potential others failed to see.  Be that type of investor. In vest in properties where you see potential other can’t see and work your plan to earn your profit throughout the project. We do not get ahead by pushing others back.

Note: Images on this blog site are from a free source or taken by the author. No image or group of photos is intended to represent the people the author serves. The author does not care about Race (that is a politically correct term that he does not like because we are all of the same Race, the Human Race. He prefers the term ethnicity, color, religion, sex, gender, marital status, disability, genetic information, national origin, source of income, Veteran or military status, ancestry, citizenship, primary language or immigration status.) He is a service provider for all people. We will all rise together when we band together and help one another. Joseph Erwin is a Real Estate Broker, DRE # O2131799, and a CA general contractor # B 696662. He’s a member of the CRMLS and The East Valley Association of Realtors located in the Inland Empire region of Southern California.