1.) Don’t Forget to Do Your Homework
Not many people naturally know about investing in real estate. That is one of the reasons we exist; the help educate future investors on how to actually invest part-time. Don’t jump into something you know nothing about. Do your homework. Know what you are getting into. Flipping is not as easy as the TV shows make it look. Just because you saw it on TV, you read it in a blog post, doesn’t mean you are Barbara Corcoran from Shark Tank okay?

So take the time to learn your craft, do your homework, read the books, listen to the Podcasts, and check our our Flipping Houses University while you are at it.

2.) Do Research Your Farm Area

What is your poison? Do you like single family houses, multifamily, or commercial. What ‘s profitable in the area you plan on making your farm area? Is it better to flip, buy and hold, wholesale, or is land-lording the way to go in your market? These are all good questions you need to check into. Also make sure if you do not have your real estate license that you get a good Realtor on your investing team. She can help you find comps to potential investment properties and furthermore help you research pricing and rent levels.

3.) Don’t Invest in Something You Don’t Understand

This kind of goes back to the #1 rule when investing in real estate. If you try to invest in something you don’t know, how can you be successful? To quote the most successful investor we can think of, Warren Buffet, “Never invest in a business you can’t understand.”

We would be wise to adhere to Mr Buffet’s words of wisdom. If you don’t get it, then maybe flipping houses isn’t your retirement plan after all.

4.) Do Surround Yourself with Like Minded People

One of the best ways to learn about investing in real estate is to surround yourself with successful investors. Ask them questions, a lot of questions. Go to networking events. Join an online chat room about flipping houses. There are also plenty of cities out there that have REI groups that you can join and get the investor mindset.

Be sure to check back next week for Part 2 of The Do’s and Don’t of Investing.

To learn more about Part-Time REI visit us at http://part-timerei.com/

Or connect with us  

Where can I find money?

Learn from someone who knows what they are doing

Our team is also big promoters of mentoring. We believe it is the secret to success. Get connected with the right people. Let’s talk about mentoring. It’s how people who are great at what they do learned, and it’s how our team learned. It has been said that experience is the best teacher.  But what we suggest is why spend valuable time reinventing the wheel? Part of our Flipping Houses University series talks about learning from others mistakes and the value of time.  Instead, if you learn from those who have been successful before you, you become more successful much faster.

Have a system

We say this in about every blog: Have a system and stick to it. Jumping ahead in the flipping world with out laying out your strategy is not only dangerous it could ruin your flipping adventure. Having a system and using tools like your Property Repair Estimate Sheet will keep you organized and have an idea how the flip is going to turn out. Without a system, a flip could turn into a disaster.

Figure out Your Financing

Last year we did a blog on Where to Find Flipping Loans. Perhaps the most important item to get settled is where you will get your money from to be able to invest in real estate. Whether is private lending, buying from wholesalers, or you are getting the loans yourself, do your self a favor and get this figured out BEFORE your first opportunity presents itself. 

Learn from your Mistakes

Don’t make this mistake. Don’t rehab the home the way you want it. Don’t pick out designer tiles or trendy paint colors. Remember you are trying to appeal to potential home buyers, not your personal taste. Yes the marble counter tops will really look nice but an upgrade like that could price yourself right out of the neighborhood. Neutral options that are comparable to other homes in the area will best serve you to sell the house. For a list of most common mistakes to avoid check out our blog on Why Flippers Fail.

Be sure to check out Part-Time REI’s  Flipping University to help you get started.

To learn more about Part-Time REI visit us at http://part-timerei.com/

Or connect with us