Good Morning!
Before I begin, I’d like to mention that I’m looking for an Acquisition Manager to work the Philadelphia region based out of our office in Folcroft, PA. The Acquisition Manager is the leader on every deal we do at here Diamond Equity. We provide leads, training, & capital. Go to Careers.DiamondEquity.com for details on how to apply.
Here are today’s highlights:
- 37 Unit Portfolio For Sale
- Your Property Insurance may NOT Pay Out for Catastrophic Claims
- Getting Buyers Excited to take Your Call
- How to Successfully Invest in Real Estate – Source the DEALS!
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3 Ingredients Needed to Successfully Invest in Real Estate
- Deal – A property you can buy & operate for a profit
- Capital – The money to close & operate the deal
- Operations – Includes renovation, management, and/or sale
First off, operations-actually running the deal through to completion-is a LOT of work in some cases. A great operator might be a great rehabber with solid subcontractor resources and attention to detail. Or they might be a great leasing specialist – like Saul Z, who was on the REI Diamonds Show recently-keep an eye out for that episode being released later this week.
Most people getting started in the business think the Capital is the hardest part. I used to think I had to save up enough cash for a down payment before I could get into the business. Turned out, once I found my first deal, I found a way to get the capital to close it out.
More experienced investors know that the Deal is the most challenging to come by. You have to hunt, make offers, follow up – WORK HARD to keep moving deals into your pipeline. It turns out, once you get some momentum, there is always a way to get the capital if you have a solid deal.
Successfully investing in real estate requires all 3 of these ingredients to come together. You can be good at all 3, or, in my case, partner for the pieces I was missing. Since I didn’t have capital at the beginning or much experience in operating the deal, I decided that I would become the source of the deals. No one in the world would find more deals than Dan Breslin. I still believe this.
If you haven’t yet found the success in real estate investing that you desire, evaluate which of these 3 ingredients you bring to the table and which you might be missing. Either partner with someone who can bring those missing pieces or resolve to learn the missing skill. Or, if you’re starting from the beginning the way I did and you don’t have any of those 3 ingredients, resolve to become the source of deals.
The Real Estate Broker Every Investor LOVES
I’m going to be honest here. I love people and I love real estate agents, but, as a buyer & investor, if you call and have NO deal to discuss, it’s hard to keep the conversation going. As I noted above, every successful investor is on the hunt for deals. The real estate broker everyone loves is the one who can bring a continuous source of deals for consideration. Resolve to be the source of deals.
When you call a buyer and you have a deal they might have interest, that buyer is happy to take your call. When you call without a deal, the buyer is wondering why you bothered to call? Having an actual deal to discuss becomes this valuable piece of information that changes everything. Then then you, the caller becomes a welcomed guest instead of an unwelcomed pest.
I can help you with this, as many of our deals throughout the U.S. are fix & flip deals. The kind of deals most investors are looking for. Whether you’re a investor looking to flip a house, or an agent looking for real deals to present to clients, I suggest you check out our available deals at www.DealsWithROI.com You can discuss these deals on the calls you make to your buyers this week.
Your Insurance Company may NOT Payout for Catastophic Claims
The most shocking fact I’ve discovered in 2024 is that insurance companies often deny claims for catastrophic property loss-such as fire. Let’s face it, one of the best reasons to invest in real estate is because the large value of the asset is insured-or so I thought.
Many policies are written (and signed off on by the insured – YOU) so that they may actually be in a default state from day 1.
One example is a rehabber who gets a landlord policy for their fix & flip deal. Well, this policy can legally deny your claim because the property policy would be a vacant house OR builder’s risk policy. Many flippers don’t know that this policy exists and often insurance agents don’t ask or don’t know themselves-but are motivated to simply sell you the landlord policy and collect their commission. Fire occurs, insurance company discovers half-completed renovation and denies the claim. Not good.
For a deeper dive into properly purchasing insurance, I suggest listening to these two REI Diamonds Show episodes by Andy Gurzak, claims adjuster, & Galen Hair, insurance claim attorney.