Rental Demands Are High – Should You Fix and Hold?
By Tarek El Moussa
Christina and I laugh at each other a lot because we go back and forth on the money we spend. I tend to underestimate how much our flips will cost to rehab, but then she wants to go buy a claw-foot tub for a flip that’s already over budget. Fortunately, we balance each other out, and we’ve been doing it since the beginning. In fact, we didn’t have to spend a lot of money to make money in real estate. So let’s talk about how to start a real estate business without breaking the bank.
Get Organized
If you want to quit your job and start a real estate business, you’re going to need to be efficient with your tasks. You’ll start by working on your flipping business part time, but eventually you’ll have too much to do to continue working your full-time job.
To quit your job and start making money quickly without burning through your savings or spending a ton of money, you’ll need to get organized and create a regular schedule. With a weekly schedule with time dedicated to finding leads, following up with motivated sellers, and checking up on rehab progress, you’ll make more deals and sell houses more quickly.
Do Your Own Marketing
When you get started, you’re going to have more time than money. You can stretch your funds a long way by doing your own marketing and advertising. Fortunately, you can gain a pretty big following just by posting regularly on Facebook, Twitter, and/or Instagram. As long as you post interesting content and stay consistent, you can go a long way without hiring a marketing professional.
You can also do your own print marketing and advertising. Just have some mailers and flyers printed and then hand deliver them or send your design to a company that will do your direct mail marketing for you. You can also have small signs made at really affordable prices and place them in the neighborhoods where you want to flip houses. You might be surprised how well those “We Buy Houses” signs can work, and they’re really cheap to make, too.
Don’t Be Afraid to Call Motivated Sellers Back
Even if you’ve left a flyer at their door or have spoken to them once before, don’t be afraid to call your motivated sellers back after a few days to follow up with them. They may simply need a nudge in the right direction, and following up with them once won’t cost you anything at all. Don’t pester them, though. If you’ve called them back once, don’t keep calling to try to get a deal that they don’t want to make.
Talk to Everyone You Know About Your Business
Finally, don’t be shy when it comes to talking to everyone you know about your house flipping business. You never know who might want to invest in a great flip deal. Also, the more you talk about flipping houses and starting your business, the more comfortable you’ll get talking about it. That’ll make a big difference when you contact investors and private lenders when you’re ready to make a deal. You’ll look and sound calm, confident, and relaxed. Investors will be much more comfortable working with you if you sound like you know what you’re doing and you’re confident that you’ve found a great property at an excellent price.
There you go—the basics on how to start a real estate business without emptying your wallet. It’s actually pretty simple, which is one of the beautiful things about this business; you don’t have to spend a lot of money to make money in real estate.
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Tarek and Christina El Moussa have over a decade of professional real estate experience and have been featured in national print publications, online media outlets, and a popular real estate TV show. Tarek is known for his determination to get the job done and doing it right.
Latest posts by Tarek El Moussa (see all)
- Rental Demands Are High – Should You Fix and Hold? - June 9, 2016
- Exterior Paint – Is a Touch-Up Enough? - June 1, 2016
- 4 Questions to Ask When Talking to Motivated Sellers - May 30, 2016
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