I spend a lot of time talking to investors. Most people realize the value of investing in real estate, but they just don’t know where to begin. I’ve heard from so many people who are otherwise successful, but they’ve made a real estate investment that isn’t profitable! If you begin by calling up a realtor and investing in the city you live in, chances are you won’t receive a high return.
If you want to become a high return real estate investor, there’s a foolproof strategy you have to follow. It’s nothing fancy, just a very straightforward number of qualities you need to look for in an investment.
- Find wholesale properties. If you purchase a piece of real estate at market value, it will be increasingly hard to make a high return. When you stay below the market value, you’re going to receive high ROI. Buying rental real estate off market is key!
- Find the right location. Purchasing properties in states like California or New York is going to come at a high price tag. Remember, the cutoff point for the rental value keeping up with the purchase price is about $125k. But to get the most bang for your buck, you still want to be below that amount. Don’t overpay for a property.
- Collect consistent rent. Whether you use my ROI formula or the 1% Rule, you need to run the numbers and make sure that everything makes sense before you purchase a property.
It's as simple as that! As long as you take the time to find the right property in the right market, with high ROI, you'll bring in consistent passive income for years to come.