Finding 'Diamonds in the Rough', How will you know the difference?
There is no doubt about it: We’re in a Buyer’s Market like none of us has seen before. For the next 12 or 18 months there is an investment opportunity for investors to buy perfectly viable rental properties for pennies on the dollar. These are diamonds in the rough. But this opportunity won’t last forever.
No, this is not for everyone. Most lenders have raised credit standards; it now takes a FICO score in the upper 600s to qualify. And there’s little chance for the no-money-down deal unless one is particularly skilled (or lucky). But for those with the skills, credit, and the cash, it’s time to move.
No question, extraordinary profits are out there to be earned. Yet all the familiar pitfalls remain: Sloppy or simply incompetent project cost estimating, overlooked yet pricey Soft Costs, lack of contingency allowances–– All serve to erode or even cancel profits.
In the end, it is the investor alone that is responsible for “running his or her own numbers”.
Know this: No one else shares the entrepreneur’s interest in profit. Not the brokers, not the banks, and certainly least of all the contractors. But it’s not hard. Not if you have the Right Tools.
In the Urban Rehabber coaching program we concentrate on the Fundamentals: Project Management, Budgeting, Investing Strategies, Marketing, and much more. Haven\'t found a book that covers these vital topics. So we\'re writing it.
© Philip Elmes. For more about Phil Elmes and the Urban Rehabber coaching program go to: http://www.UrbanRehabber.com