Interested in cultivating real estate profits? Then maybe you need to consider creating your own Farmville. Not the Farmville you may see posting on your Facebook page but one that you create as a real estate investor. Farming can actually put long and short term profits in your pocket. Here’s a few tips .
Create your real estate farm. Most books on investing will suggest that you establish a geographical area where you concentrate on investing. They frequently refer to this as farming. These areas can range from a few square blocks to a specific community or neighborhood. It can be rural, urban, residential or commercial areas. If you are considering neighborhood revitalization, you may consider an area where your efforts can have a social impact a well as being a good investment.
Do your due diligence. A good farmer tests his soil before planting. Make the effort to become familiar with the area. Schools are important to both buyers and good tenants. You will want to visit the schools and ask questions. Check on property taxes and the cost of public utilities. What does the area offer a buyer or tenant? Visit area parks and recreation areas. How convenient is shopping and services? Is the area on the upswing with new people moving into the area or is it stagnant or declining in population? Do you observe numerous for sale and for rent signs or does the area appear stable with homeowners and responsible tenants? What are the comps in the area and are houses selling in the area? Are their jobs in the area to support the population?
Get up and get moving. Just like the farmer who has to plow and fertilize his fields, so do you. Get to know the people living in the area. Ask questions and learn what they see happening in their neighborhood or area. Inquire about vacant, abandoned or distressed properties. People living in your farm area can be very helpful in locating deals for you. Consult with your local Real Estate Investor's Association to locate a seasoned investor familiar with the markets in the area.
Become an expert. A farmer knows what seeds will grow in his soil. This can be simple when you are able to focus on investing in one area rather than skipping from area to area or even from city to city. These area can offer a wide variety of opportunities . Wholesales, owner financing, lease options, short sales, rentals, rehabs and more.
Harvest your crop. People purchase houses if they feel confident about he seller. As you farm your area you are creating a reputation for your workmanship on rehab properties, the type tenants you place in your homes and the improvements you are providing to the area. People like to work with someone they know and trust.
The idea of creating a real estate farm is not a new concept. Investors have been using this approach in one form or another since an entrepreneur cave man first rented out a cave. As investors facing sluggish housing markets across the country , we are going back to the basics. Real Estate 101. If you have not already started …consider creating your own Farmville and cultivate some real estate profits for your bank account.