So how do you do that? Well, let’s talk about what a lot of people end up doing. They go to their mentors, get all excited about this passion, end up borrowing a ton of money, only to find out that they need to refinance and get lots of help. They may buy lots of bad properties because they think they can renovate it. don’t be like this. Here are three ways to stay successful in the realm of san jose ca real estate investment.
First, find an area that’s affordable, ideally B or C class, even though they can be rougher in terms of property management. You should invest the least amount possible because the less you invest, the lower the risk, and the more money you put in, the more risk. you’re better off doing this because you’re very likely to lose a lot on the first investment, and it’s a high-risk many times. Sometimes you’re lucky, but usually not on the first deal. Even if you end up breaking even, that’s still pretty great. You may lose the first five deals, so if you do better than 0 for 5, you’re doing great.
Second thing, don’t take on something that’s too much work. don’t give up when mistakes are made, because they do end up making you better. You want to start off slow, and start off small. Find an area with low rent, get a property for the least that you can, and make sure it doesn’t need upkeep. You don’t want your first property to be all structural issues, building foundations, walls, electrical and plumbing work. You want something that ideally just needs some cosmetic rehab. That will make it easier, to begin with.
Finally, negotiate long and hard at the beginning. You want to, especially if you’re in a buyer’s market especially do this since there are a lot of sellers that want to sell because there isn’t competition. So, anyone who comes along with an offer that’s quick and firm will take it. Instead of getting properties that need a lot of work, you get dirt cheap, renovate them, and remember that if you do take on something with a ton of risk with it, since there are outside factors, including contractors screwing you over and the city stopping this. You want to sell these to investors that want to buy. While you may make a bigger profit with a distressed property, the biggest thing to realize is that time is money, so you should buy properties that don’t need much work, turning them around, and making slightly less profit. it’s much less risky. Later on, you most certainly can take on something with a bit more work, but for now, it’s best to just work fast.
You should follow this if you want deals, and remember to start slow, small, cheap, and negotiate rightly. You don’t make money when you sell, but instead when you buy, so make sure you get below the market value.