Real Estate Coach: The Risks & Rewards of Investing Today
Flipping houses can be thrilling, but it isn’t always profitable. There are more investors out there today, and even more real estate investing gurus. So what risks and rewards can be expected in the current market?
What’s your Return On Investment after investing in a real estate mentor or coach?
The Olympics in Rio inspired us all to push ourselves a little harder to be the best we can be, many new and aspiring real estate investors are putting the gloves on, and are preparing to jump into the property ring. Some are going at it for the first time. Others are looking for bigger challenges.
Today buying fixer-uppers is a popular real estate investment strategy. While reality TV has made house flipping into a craze. Recent data shows that there are around 200,000 home flippers across the United States. That’s about 10% of the number of real estate agents out there. Statistics show that some are making great money, but others are losing money. The millenials and baby boomers have a lot of interest.
So how much can you expect to make in the current market?
What pitfalls must you avoid?
How can you increase the upside potential, while minimizing risks?
Look at the house flipping digits from last year. The Realtytrac reports how many home were sold on an annual basis. The average gross profit can be attractive in a appreciating marketplace. However this number of home sales will show and increase or decline depending on the area.
Market fluctuations in the real estate market can create scarcity for deeply discounted properties, and high prices on homes, while investors face more competition. Others would say this is simply the outcome of too many newbies rushing into fix up homes without really knowing what they are doing.
They are diving in with a reality TV education. They don’t know how to run the numbers right, or avoid the various pitfalls which can land them in bankruptcy on their first deal. They can quickly wind up in the red, and find themselves stuck with a property they can’t resell, rent, afford to keep, or finish rehabbing. The profit potential is big, but so are the risks.
CNBC says real estate investors may need to begin moving further into higher risk markets and properties with less solid economic fundamentals to chase better yields and spreads in the long-term.
Elevated risk and reward ratios are going to quickly hasten the separation of the successful and victims in this industry. Those that are making money are going to keep making more. Those that lose money on deals are going to find it hard to stay in the game. Yet, at the same time many investors still struggle with the math on investing in their education, coaching or mentoring. Despite the obvious time, profit margin, and scale advantages of having a mentor to walk them through their first few deals many wrestle with putting a penny into this type of learning, how to close deals.
It’s actually really simple to break down the choice of whether to take the D.I.Y. or mentor route:
1. How many athletes have competed in the Olympics without professional coaching and training?
2. Would you rather make $55,000 or lose money on your next real estate deal?
3. Do you want to go in with the confidence this will work, or just take a gamble?
The choice is yours I just hope you make the right one!
I”ll See you at the closing table,
Marcel Umphery the “R.E.I. Successmaker”