Sometimes as Real Estate Investors we fail to grasp the basics of our business. And by failing to grasp the basics, we cost ourselves untold time, money and aggravation. The "Buying Process" falls into this category.

What is the "Buying Process" you say. Simply put... it's the process we all must go through in order to profitably acquire property. Here it is in a nutshell: First of all, we need to learn our market. Without some knowledge of our market, how can we expect to recognize a good deal.

Next... we have to learn how to locate property. Call it prospecting, if you will. Without a system in place to bring us a constant flow of property, we're dead in the water. Without a method of locating property, we're out of business. Period.

Once we locate property, we have to set the appointment. Starting to sound a little like sales, isn't it? But hey... aren't we more efficient if we tightly qualify sellers over the phone? Sure... but maybe we should be striving to become more effective... not more efficient. If we set more appointments with sellers... we'll buy more property.

The next step is to inspect the property. We don't have to become a pro, but we do need to pay attention. Is something out of whack? Are there signs of problems? How has the property been maintained? With just a little practice... we can learn to inspect houses fast! If all else fails... call in the pros and continue to learn.

In order to buy right, we have to learn how to negotiate our deals. Learn how to talk to sellers. Learn what's firm and what's not. Ask the questions. Gather the information. Develop a workable offer. Do it in a timely manner.

Once we negotiate our deal, we have to learn how to put it in writing, don't we? Learn how to contract to buy. This is detail work... but... boy-oh-boy, does it pay off! This is an ability anyone can learn. Don't be intimidated. Once you learn this art... you'll discover the written word will do most of your negotiating for you. Especially when you make the written offer.

O.K... just two more and we're done. We have to learn how to finance our purchase. Whether this is creative financing or institutional financing, we have to be knowledgeable. The old Boy Scout motto is applicable here. Running around at the last minute does not exude the kind of confidence we want to impart. Know your options in advance.

And lastly, we need to learn how to close the transaction. We need to build a team of knowledgeable professionals to aid us in this process. Problems come up, don't they? And, more often than not, they surface at the closing. Having a good working relationship with a team of pros can be an invaluable asset.

We'll that's it. Are you missing a step in this process? Are you weak in one or more of these steps? We could all use some improvement, couldn't we? This business is an evolutionary business. You're already way ahead of the game... but... some of this you won't fully understand until you're ready to understand it. You have to go through the motions. Your deals will get better as you go. So... what are you waiting for? Make something happen!



Scott Britton is currently writing The University of Real Estate Letter, a monthly How To" newsletter for those who desire to make a six figure income from their Real Estate pursuits.

For Tapes and Courses on this and other Real Estate Investing Topics, please visit our Online Catalog

 

Do you own real estate articles or stories and want to share with other investors? 
You have chance to win $100 Amazon Gift Certificates. We will give away 3 prizes for top authors each month!

Email your articles or stories to:  articles@buyincomeproperties.com

 

© Copyright 2001 - 2010 by BuyIncomeProperties.com               

 

 

Visit Real Estate Forums for every real estate investing topics!  Enter Here

    

Top of Page