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How Small Business Owners Can Strike a Financially Viable Real Estate Deal

How Small Business Owners Can Strike a Financially Viable Real Estate Deal

If you want to improve your finances and have income diversity, real investment is one of the best choices. Many small and large businesses are looking at it seriously and you should too. If you are a small business owner, you will have to focus on what is important. And in most cases, it would be the cash flow and profit. If you have a nice sum of money, it is recommended that you invest it in real estate. You may even turn it into a small side business since the profits can be huge.

Real estate is one of the wisest investments you will ever make. It’s safe (most of the times) with high rewards as well. Real estate prices are rising almost everywhere, and the returns can be as high as 15%, given that you play well.

Many buyers still go the traditional route when it comes to buying a property. However, is it always the right thing to do? Not really. There is a lot you can do to find a killer real estate deal, one that costs you less and gives you a very high ROI.

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So how does one find such a deal? Here are some tips.

1. Look at a Lot of Options and Compare them All

It is all about numbers. Look everywhere for sales. Subscribe to online real estate agents, talk to your friends and family members about your intentions, so they can refer you to an agent or let you know of someone looking at selling a property

You will receive hundreds of leads, but only a few will be worth it. It’s basic, a lot of the deals will be too expensive and a lot will be with really low ROI. You should collect all the leads and then chop them gradually, first eliminating the properties you cannot afford. Next, eliminate the properties based on how much return they are going to provide you.

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You will also need to keep in mind the pros and cons of buying a new property versus the old one, I got a chance to speak with Tamir Davies of Sellhousefast, a property specialist with years of experience in the industry, according to him, “Though, in all the excitement, buying a property is still a difficult venture and an expensive one too; thus, families, couples and those purchasing alone are opting for new-build properties which are energy efficient, brand spanking new and come with a builders guarantee and a ten year warranty.” That goes to make a point that new builds are often the better choice.

Once you have a few left, compare them all. When you plan on selling in mind, consider how much renovations they need and if such renovations will help the property. Addition such as a pool, can push a property’s value by up to 20%. You should study the real estate market deeply. Also, it is important to compare two options. For example, if you are in Chicago you should see what’s happening in the Chicago real estate market and then compare it to other markets such as Los Angeles and Tampa, both offering high returns.

2. Bank-foreclosed property Is a Good Option

While foreclosure is sad, someone’s loss may end up being your gain. When a borrower fails to pay back a loan, the lender may put the mortgaged property on sale, allowing you to get it at usually a low price.

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Banks are good at giving loans, and not managing houses. They are interested in getting back their money, hence they will often sell a property at a cost much lower than its market price. It’s often a deal you do not want to miss. However, you will have to study about buying foreclosured houses. Having the right information will make help you get the right property. You may even ask for discounts based on the condition of the house.

3. Be Quick and Offer Wisely

Believe it or not, at times sellers will sell a property to the first bidder. This may be due to them being in a financial crunch or simply not being in a position to afford the property. Whatever it is, it can be your gain.

You do not have to seal the deal the day you check a property, but do not be late in making an offer. You can also avail discounts by promising to pay lump sum money.

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4. Approach Owners Privately

This may not look like a very good idea, but works in several cases. You can look beyond listings and find homeowners privately. However, only make an offer if you are sure of the home owner looking at selling a property.

The problem with listings is that there are often too many offers. The real estate market is hot and everyone is trying their luck. This is also partially why a lot of homeowners still prefer to just put a ‘for sale’ sign outside of their property instead of posting an add online. You should look for such a homeowner and speak to them about the property.

You may also find absent homeowners. So if you find a deserted house, look for a homeowner and approach them privately asking if they’d be interested in selling the property. But make sure to make this offer in a subtle manner, so that you do not end up offending them or sounding too desperate. Highlight the benefit of selling the property. Some pointers that may help you strike the deal include highlighting the maintenance cost, how the property is losing money and taxes.

We hope following these simple tips will help you get the property you want. If you are looking at starting this as a business, remember to not count on it as your primary business till everything is in place.

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Ahmed Raza

CEO of Samurais.co

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Published on November 20, 2018

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

Why Your Past Prevents You from Saving Money

Are you constantly thinking about your financial mistakes?

If so, these thoughts are holding you back from saving.

I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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How to Effortlessly Track Your Spending

Stop manually tracking your spending.

Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

The Truth on Why You Keep Failing

Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

  1. Save more than 50% of your available money (after expenses)
  2. Only buy nice things after saving
  3. Automate your savings with automatic bank transfers

These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

How to Foolproof Yourself out of Debt

Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

So how can you separate yourself from the 60%?

By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

A Proven Formula to Skyrocket Your Savings

Having proven systems in place to help you save more is important, but they’re not the best way to save money.

You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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Transform Yourself into a Saving Money Machine

Saving money isn’t complicated but it’s one of the hardest things you’ll do.

By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

What are you waiting for? Go and start saving money, the sky is your limit.

Featured photo credit: rawpixel via unsplash.com

Reference

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