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Top 5 Rules for Investing in Real Estate with Jim Toners Wealth Builders

The past few years have been completely topsy turvy when it comes to investing in real estate. However, this doesn't mean it is a bad time to invest. Actually, it's the reverse. With housing and property prices nearing rock bottom, good deals are there for the taking if you approach it the right way. Below are five easy tips for investing in real estate today:

1. The Seller is the Key.
You can chase deals until the sun goes down, but if the seller doesn't want to sell, they won't. If, on the other hand, you find a motivated seller, the deal becomes infinitely easier. Basically, you have to assume that sellers are motivated to sell their real estate for three reasons - a change in personal situation, emotional reasons and personal reasons. When a situation in the seller's life changes and they can no longer afford the house, or there is job loss, divorce, illness, death, relocation, or a whole host of other reasons. One of these reasons are the best possible situations for an investor to walk into.

2. Is the Deal Worth It?
You absolutely must evaluate the deal. You've found the motivated seller, now it is time to figure out if that deal is going to work. Real estate investing always always always comes down to the numbers. There are five factors that can help you decide whether or not investing in a property is a good decision: Location, Condition, Price, Financing and Seller's Motivation. Assign a value system to each of these five things to evaluate whether the deal is worth it or not.

3. Write an Offer
Once you've looked at the numbers and decided the deal is worthy of your time and money, it is time to write the offer. Before you do, plan out two exit strategies so that you are not stuck holding onto a property that you cannot rent or sell. This is part of the recent problem in real estate investing. People jumped in on pre-construction properties in the hopes of getting rich quickly. A good strategy for writing an offer with exit strategies it to submit three contracts on the same property with different prices and terms and let the seller decide what works best for their situation. Jim Toners Wealth Builders.

4. Line up your Financing
Now that your seller has agreed to one of your three offers, it is time to close the deal. Line up the financing - whether you are using conventional financing or wholesaling the property - whatever method you are using to finance it, it is time to line it up and confirm it. It is also a good time to start looking for a tenant or tenant-buyer. Remember to line your financing up in alignment with your exit strategy.

5. Follow Through
Whatever your plan is, follow through on it. Remember, you set it and made it for a reason. What was that reason? The problem can come in when investors buy real estate with the plan "buy-fix-sell." An offer is written based on a certain sale price and a budget and plan to renovate. Once the house is closed on, too many people fall into the trap of over-improving it and selling it for more than it's worth. Stick to your plan, all of the calculations you made in the analysis stage were for a reason.

By following these tips you can make money investing in real estate, even in this market. Jim Toners Wealth Builders.