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    imes even longer. You don’t want to end up making minimum wage as a handyman after the project is done. Quite frankly this is not uncommon for first time investors.

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    If you are investing in real estate you will face a variety of challenges. First you have to find the right property. Finding the right property is a combination of personal preferences and opportunities involved in a real estate deal. My most important real estate investment principle is; “You make money with real estate when you buy the property not when you sell it”. This means that I wouldn’t touch a rehab property where the purchase price is not below 65%-70% of the market value.

    Why do you need such a low price to make it work? This is quite simple. A common guideline among investors is that you must make at least $10,000 to make it worthwhile. Remember you’re an investor and not a handyman. Rehab projects last typically 4-6 months, sometimes even longer. You don’t want to end up making minimum wage as a handyman after the project is done. Quite frankly this is not uncommon for first time investors.

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    opportunities involved in a real estate deal. My most important real estate investment principle is; “You make money with real estate when you buy the property not when you sell it”. This means that I wouldn’t touch a rehab property where the purchase price is not below 65%-70% of the market value.

    Why do you need such a low price to make it work? This is quite simple. A common guideline among investors is that you must make at least $10,000 to make it worthwhile. Remember you’re an investor and not a handyman. Rehab projects last typically 4-6 months, sometimes even longer. You don’t want to end up making minimum wage as a handyman after the project is done. Quite frankly this is not uncommon for first time investors.

    Real estate investm

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    ans that I wouldn’t touch a rehab property where the purchase price is not below 65%-70% of the market value.

    Why do you need such a low price to make it work? This is quite simple. A common guideline among investors is that you must make at least $10,000 to make it worthwhile. Remember you’re an investor and not a handyman. Rehab projects last typically 4-6 months, sometimes even longer. You don’t want to end up making minimum wage as a handyman after the project is done. Quite frankly this is not uncommon for first time investors.

    Real estate investm

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    common guideline among investors is that you must make at least $10,000 to make it worthwhile. Remember you’re an investor and not a handyman. Rehab projects last typically 4-6 months, sometimes even longer. You don’t want to end up making minimum wage as a handyman after the project is done. Quite frankly this is not uncommon for first time investors.

    Real estate investm

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    imes even longer. You don’t want to end up making minimum wage as a handyman after the project is done. Quite frankly this is not uncommon for first time investors.

    Real estate investment is all about numbers. If the numbers are right you must make every mistake in the book to turn your project into a financial disaster. That’s why you must buy the property as cheap as possible. Selling the property is your least problem. First you have to put together a budget. Here’s a little example.

    Property A is located in a decent neighborhood with average home resale values of $150,000. That’s what our property will appraise after the repairs are done. We also take out a hard money loan with 4 points and 12% (interest only) for 100% of the purchase price. We calculate that the property will sell for $150,000 in 6 months. There are about $10,000 in repairs you have to take care of.

    Property A

    Purchase Price $100,000

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