Marketing Strategies For Real Estate Investors |
People are oping for investing in real estate over the uncertainties of the stock market. Many real estate investors are new to this market and often make mistakes leading to losses. They need to plan strategies for investing in real estate. People invest in real estate to sell at a later stage for a handsome profit. For this they need to have a marketing strategy in place.
Buy At Bargain Prices
Many real estate investors have entered the business because they saw someone else do the same, and make a lot of money. This is a big mistake, as it may not always work out for you. Since you will be selling your property later, you need to make bargain purchases, where you pay only around 80% of the current market value. This is not easy, but it is possible.
Buy foreclosure properties
Buy properties that are off the beaten path, properties that people avoid due to some adverse aspect they have.
Foreclosed properties are always bargain buys, and you may even get them cheaper than 80% of the current market value.
Upgrade The Properties
By upgrading the properties, you add market value to them. A property condemned by the board of health due to a massive roof leak, with a market value of $300,000 could be bought for, say, $200,000. You can upgrade the property by making roof repairs, which could cost about $40,000. You can make a good profit, just by making little repairs, and then selling for about $280,000, which would be below the current market value.
Upgrading does not mean cosmetic changes. Cosmetic changes will not fetch you a high price, though you may have spent a bundle on them.
Flipping
This is a very common strategy, but it is risky at times. Some real estate investors, as a form of marketing strategy, buy and hold real estate properties for a short period and then sell them at a profit. This is based on the assumption that the real estate prices will rise.
Flipping is not an easy way to make money, and you need to have enough cash flow, if you are not able to sell your property fast, or hold on to it because of adverse real estate prices. Real estate investors, who are real flippers, combine the strategies of bargain buying and upgrading the properties to make decent profits.
Real estate investors must develop a marketing strategy for their properties. Depending alone on the tenet that all property prices always go up and never come down, may not be safe, as there are times of slumps in the markets.
About the Author
David Gass is President of Business Credit Services, Inc. His company publishes a free weekly e-newsletter on Small Business Consulting at their web site
By : David Gass http://www.smallbusinessconsulting.com [ 23 May 2008 16:08:48]
|
|
|
|
|
RSS 
