How to Acquire 10 Rentals in One Year
By: Joe Luckino
Tighten the boot straps, let’s go on a ride. You are asking yourself is this possible? I already have a nine to five job? My answer is absolutely. I know, because I did it myself, and I’m telling you it is possible. It just takes a solid game plan and focus. I recommend buying a couple rentals and getting your feet wet before you take on this task.
With the foreclosure market coming into a great upswing due to interest rates rising and people’s fixed rates going to variable, there will be a lot of houses going up for sale to choose from. Eighty percent of the homes I buy are foreclosures. They are either HUD, Fannie Mae, Freddie Mac, or Bank REO’s. Look for homes that have been listed for a while, the longer they’re on the market the better chance the bank will come down in price.
Now this goal of 10 rentals can be accomplished by using one of the most powerful concepts in business and life for that matter. That is the power of leveraging, leveraging time and money. If you have a good relationship with your lenders, they will let you work on several deals at a time. That buying power is very important, because in my experience it seems like when one deal rises, one or two other good deals pop up at the same time. The old saying when it rains it pours and when it is dry there is a drought. This way you don’t have to pass up on a good deal when it comes by.
The other leveraging tactic you are going to take advantage of is the most precious commodity on earth, something you can never get any more of, the power of time. If you are like most people and have a day job, you can’t do this without additional manpower unless your superman. Most of the homes you are going to buy at a good price are going to need work before you can get them reappraised and refinanced. You are going to need dependable contractors and handymen to get this work done in a timely fashion. Remember, if you borrow money to buy these homes you want to get them rehabbed and rented as soon as possible so you can refinance them, pay your rehab lender off, and get out of that high-interest loan. Keep in mind that you want to be a real estate investor -- not a contractor. Let the contractors do what they are good at, which is construction, and you stick with what your good at -- finding, evaluating, and investing in real estate.
As you take on this big undertaking there are few things you must keep track of that are imperative to your success. You have to be the organizer and make sure you keep everything running smoothly.
1. Contracts
Make sure you have contracts with all your contractors so you know exactly what their doing for you and they know exactly what needs done.
2. Budgets
Stay on top of your budgets daily. It is easy to go over budget, and in this type of business bills can bury you quickly. So make sure you keep a close eye on your greenbacks.
3. Timelines
Talk to your workers on a daily basis to make sure they’re on schedule. You want them to have deadlines and consequences on getting your work done. You also want to make sure no one is holding anyone else up, which happens frequently in this type of work. The plumber will blame the electrician and say he’s holding him up and before you know it, it snowballs and your three weeks behind schedule.
As long as you stay on top of contracts, budgets, and timelines, you should be fine. And you’ll be on your way to buying ten houses in one year!
Copyright 2006 Joe Luckino
About the Author:
Joe Luckino is owner and cofounder of Money4Investors.com. Money4Investors.com is a real estate investing information site that helps investors find financing, other investors, appraisers, contractors, realtors and much more. Money4Investors.com also has over 1.2 million foreclosures, pre foreclosures, tax liens, bankruptcies and wholesale listings. For more information visit: http://www.Money4Investors.com