6 Ways to Make a SMART Real Estate Investment

6 Ways to Make a SMART Real Estate Investment


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Real estate developing, or as the media has popularized it, “house flipping”, is a trendy subject these days. We see couples doing it on TV, moguls selling “get rich quick” courses on the internet, and there is an entire section at Barnes and Noble dedicated to this subject.

There can be substantial returns for relatively short-term investment periods, which is what makes the industry so appealing. However, if you’re not particularly well versed there may be extensive risks associated with unexpected costs. We’ve seen people get into trouble from lack of education and experience. At Central Development Group, LLC we take the guesswork and headaches out of investing while still providing you with predictable returns in the market. Here are 6 ways our team makes smart real estate investments for our Investor Partners.

1. Use Experienced Redevelopers:

This is the most important rule to follow in this industry. Finding someone with experience and a proven track record is the best way to ensure success with your investment. With 35 years’ experience and a background in construction, we specialize in time efficiency, systems management, and time-tested knowledge. We provide our Investor Partners full disclosure of our process & procedures, the specific transaction as well as their expectation of returns.  While there is no secure investment, we limit the risk by open communication and a very strict protocol with all facets of purchase, renovation, and reintroduction to the market.

2. Location, Location, Location:

Look for trending areas and well-established neighborhoods; find the distressed home amongst beautiful estates. It can be difficult to find the right location at the right price, but at Central Development Group, LLC, our team has strong connections in the community. It’s imperative to maintain great relationships to have access to amazing properties before they even hit the market. We must work fast when a desirable location is active, as such, we’ve made immediate all-cash offers while standing in the living room upon a first walkthrough. If the location is right, an updated home will always be desirable and will move quickly.

3. Buying at the Right Price:

Buying a home at the wrong price often means eliminating all potential profits on the investment. When working with our team, you have access to an expert negotiator. Having successfully completed dozens of transactions, possessing sophisticated estimating and deal analyzer software, we can accurately predict what the property is worth (limiting the exposure to risk), determining the anticipated costs of redevelopment and the retail value upon completion of the renovation.  This process ensures immediate equity which furthers reduces risk and ultimately leads to higher profits.

4. The Redevelopment Process: 

Our estimating, budgeting and vetting process as well the relationships with proven subcontractors, vendors, and material suppliers assure a smooth process.  You need someone who can walk through tiny overcrowded rooms and see potential for wide open floor plans. The harder part is estimating what those tasks will cost. While there is no way to predict what may lie behind a wall, the budget (and the fact that we purchased the property with immediate equity) provides a measure of competence and confidence the investment is secure.  From start to finish, we will have a complete on-site presence with all who execute the work to assure the details are administered before “stuff” happens.

 5. Sell Quick!

The goal of a property rehab is to resell for a profit. Every day the property sits is margin slipping away.  We set the budget, estimate the timeline and predict when the property will be ready to list on the MLS. This is accomplished by following a proven Property Launch Formula that details the many facets to market the property.  From staging, online posts, printed materials, open houses, personal contacts, giveaways, etc, we drive traffic to the property. The market determines a home’s value, not the investment in the property, therefore working with Central Development Group, LLC, will ensure the appraised value will equal or exceed the market value at closing.

6. Commit to the Relationship:

Redeveloping starts with a vision. This is where inexperienced and part-time investors get into trouble. Unlike TV, we have never made $70,000 in 45 minutes. However, we have a knack for eyeing the potential and knowing the numbers. It’s extremely important to be confident when we buy, focus on the renovation team through the details, assure realtors maintain complete disclosure, procure accurate timelines and allowing for unexpected expenses when we sell.  

 

When working with Central Development Group, LLC, you have the peace of mind knowing we transform the worst in the neighborhood to a family home while at the same time preserving capital, and limiting risk without the volatility of the stock market. With no commissions and no fee’s, we address all the details from purchase to close and look forward to the next project.  It’s where we develop relationships through projects and properties.

 

To see past success stories and hear our client testimonials follow the links below.

Case Studies Here. Testimonials Here.

 

Call me at, 573-442-2727 or email:  joe.greaves@centraldevelopmentgroup.com

Comments

  1. pulsedaily says:

    Joe Greaves, thank you for this post. Its very inspiring.

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