Go Back To Article List

How To Buy and Sell Real Estate

Posted Thursday, August 1, 2019

According to a recent survey, only 15% of Americans are actively investing in real estate. However, that same survey revealed most people think investing in real estate is a smart way to build wealth. But to do so effectively, it takes time, patience, and a commitment to the smallest of details. As today's real estate market has expanded in many ways, investors now have a variety of choices when it comes to buying and selling properties. If you are an investor who is hoping to turn referral leads into profits, here are some tips to keep in mind.

Buy Low, Sell High
Within the current real estate market, there are many people anxious to sell their homes for numerous reasons. However, rather that listing their properties with a traditional real estate agent and waiting months for the property to sell, they prefer selling to investors who have immediate cash in hand. By choosing to purchase these properties, many of which can be found through referral leads, you can buy at a lower price and thus increase your profits when you flip the property.

Stay Local
While some real estate investors have properties across the United States, most experts in the industry recommend maintaining a local flavor when buying and selling real estate. In doing so, you'll have a good knowledge of the market, which will help you when negotiating a purchase price. In addition, having local knowledge will also help with selling properties, since you will probably know people who are looking for the exact type of property you happen to have on the market.

Start Small, Think Big
If you are new to real estate investing, it is best to start small while still thinking big. For example, you can begin by purchasing a smaller home at a modest price, thereby reducing your financial risks. Also, try to find a home initially that requires little if any renovation, since this could also cut into your profits should you find a few unexpected and unpleasant repair jobs along the way.

Diversify Your Portfolio
When investing in real estate, try to make your portfolio as diverse as possible. For example, try to include not only single-family homes in the mix, but also multi-unit properties and even some commercial properties. By taking this approach, should one aspect of the real estate market slow down, chances are you will still have plenty of properties that are still doing very well.

If you keep these tips in mind, you will not only find the best available properties for your investment plans, but also position yourself to make the profits you envisioned. By carefully balancing the various risks and rewards, you'll come out on top.