From the Podcast

Ep. #6 - Evaluate, Market, Negotiate & Fund - What It Takes To Succeed As A Real Estate Investor In 2019

Ep. #6 | Evaluate, Market, Negotiate & Fund – What It Takes To Succeed As A Real Estate Investor In 2019

In this Episode (#6) of the [... and Landlord] Podcast titled "Evaluate, Market, Negotiate & Fund - What It Takes To Succeed As A Real Estate Investor In 2019." - I speak briefly on each of these four skills that are especially critical in today's "Hot" market. 2019 has been a difficult year for "deals" on Rental Properties for people like myself who are looking to buy cash-flow positive properties, but it seems to be a great year for sellers. From the buyer's prospective, everything appears to be highly overpriced if there is to be any chance of having positive monthly cash-flow. If you're looking to be one of the successful Real Estate Investors, then it's going to take some extra hard-work and manoeuvring on your end to ensure that possibility!

Prior to this year, most (but not all) of my properties came from the good old MLS, and many were short-sales or foreclosures. Having started my Real Estate Investing career in 2015, there were no shortage of these back then, so I could take my pick - and through 2018 I never had a shortage of properties under consideration at prices that easily met the 1% Rule.

In this episode I explain what the 1% Rule is, and how properties meeting this rule are almost certain to yield positive monthly cash-flow. The problem is - they are so much harder to find in 2019 than they were from 2010 to 2018. Occasionally one may hit the MLS, but you'd better act fast, or it will quickly enter a multiple-bid situation where the price gets bid up well beyond anything that will yield 1% in the rent to all-in cost comparison that is the 1% Rule.

Thus, in this episode, I explain how strict adherence to the 1% Rule may not work as well in 2019... Instead, you'll need to be able to [Evaluate Properties] for other possible methods of profit and return; and understand the circumstances that others may be working within that could allow them to justifiably pay what may seem to be ridiculous prices for a so-called "Investment" Property.

In addition to understanding the full profit and return picture and the motivational factors of others willing to pay more, this episode of the [... and Landlord] Podcast goes into aspects of [Marketing for Deals] so that you'll be in a position of working directly with sellers to obtain a potentially better deal than may be possible once a property hits the MLS. And to this end, I explain that you'll need to be skilled at [Negotiating with Sellers] en-route to obtaining your best possible deal, which may even include some aspect of Seller-Financing or a Lease-Option.

And since you'll not be able to close on even the best negotiated deal if your funding is not in place, in this episode I speak on the subject of OPM (Other Peoples Money) for needed [Funds to Close] - which can be from: Conventional Lenders / Banks; Private Lenders; Hard Money Lenders (aka Professional Private Lenders or Rehab Lenders); the seller (in the case of Seller Financing or a Lease-Option); a HELOC; a loan from an IRA/401K; etc... Being a Real Estate Investor certainly takes money, but it does not have to be YOUR money. So here I speak a little on making yourself credit worthy and otherwise appealing to potential lenders and sellers, such that they may be willing to help fund your deals.

Now these skills are always needed and always have been / will be; however, in a seller's market as appears to exist in many locations around the USA in 2019 - you especially need to have the skills to: [Evaluate Properties]; [Marketing for Deals]; [Negotiating with Sellers]; and have ready [Funds to Close]. This 6th episode of the [... and Landlord] Podcast touches upon each of these points in offering my thoughts on "What It Takes To Succeed As A Real Estate Investor In 2019."

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