The Real Estate Investing Lifecycle The Real Estate Investing Lifecycle

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The Real Estate Investing Lifecycle

The real estate investing lifecycle is a time consuming but rewarding process. A full-time real estate investing professional will spend countless hours working on seemingly meaningless non-revenue producing activities. This is normal because all of these activities will help you generate more revenue in the future.

 1. Generate Seller Leads

Create and implement marketing tactics that will drive motivated sellers to you.

 2. Prequalify Seller Leads

Gather information and analyze the perspective property. Then analyze any comparables sold in the area in the last 6 months to get a better idea of what the property value is.

 3. Inspect Property

Inspect the property and see what repairs it needs. Estimating these repairs carefully will allow you to make the best offer that you can

 4. Estimate Profit

Based on your estimated after repair value, factor in the price of the house, and all of your costs to see your estimated profit. Make sure to leave a contingency for anything unexpected.

 5. Negotiate Offer

Make your offer to the seller. Make sure to know your max offer before you start this process and do not go over your max offer. If it doesn’t work out move on to the next deal.

 6. Arrange Funding

If the seller accepts your offer you need to line up the necessary funding and open escrow.

 7. Purchase Property

Close the escrow with the title company/attorney and take full ownership of the property.

 8. Rehab Property

Manage the rehab and implement all of the repairs that you estimated so your house can be worth what you anticipated it to be.

 9. Generate Buyer Leads

You need to create backend marketing strategies that attract motivated buyers.

 10. Negotiate Sale or Lease

Negotiate offers with buyers/renters and start signing contracts.

 11. Close or Manage

Open and close escrow with the title company/attorney and complete the deal.

Once you have completed all of these steps you are ready to restart the real estate investing lifecycle. Good luck investing!

 

 

The real estate investing lifecycle is a time consuming but rewarding process. A full-time real estate investing professional will spend countless hours working on seemingly meaningless non-revenue producing activities. This is normal because all of these activities will help you generate more revenue in the future.

 1. Generate Seller Leads

Create and implement marketing tactics that will drive motivated sellers to you.

 2. Prequalify Seller Leads

Gather information and analyze the perspective property. Then analyze any comparables sold in the area in the last 6 months to get a better idea of what the property value is.

 3. Inspect Property

Inspect the property and see what repairs it needs. Estimating these repairs carefully will allow you to make the best offer that you can

 4. Estimate Profit

Based on your estimated after repair value, factor in the price of the house, and all of your costs to see your estimated profit. Make sure to leave a contingency for anything unexpected.

 5. Negotiate Offer

Make your offer to the seller. Make sure to know your max offer before you start this process and do not go over your max offer. If it doesn’t work out move on to the next deal.

 6. Arrange Funding

If the seller accepts your offer you need to line up the necessary funding and open escrow.

 7. Purchase Property

Close the escrow with the title company/attorney and take full ownership of the property.

 8. Rehab Property

Manage the rehab and implement all of the repairs that you estimated so your house can be worth what you anticipated it to be.

 9. Generate Buyer Leads

You need to create backend marketing strategies that attract motivated buyers.

 10. Negotiate Sale or Lease

Negotiate offers with buyers/renters and start signing contracts.

 11. Close or Manage

Open and close escrow with the title company/attorney and complete the deal.

Once you have completed all of these steps you are ready to restart the real estate investing lifecycle. Good luck investing!

 

 

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