On this segment of HyperFast Wealth, host Dan Lesniak speaks with co-host Sunil Saxena about the most important part of investing, buying the deal. Listen to hear how to find an investment deal, how to determine if it’s a good deal or not, and why you should be considering your exit strategy before purchasing an investment property.
Episode Highlights:
- It’s been a busy year for Dan and Sunil, acquiring an average of one investment property per month.
- Sunil has been buying deals for over 10 years, and has learned about what, and what not, to do.
- It’s hard to make money off an investment property if you overpay when initially purchasing the property.
- Calculate the maximum you can pay for the property and still make money, and stick to that.
- Sunil has had occasions where he thought he lost a deal because he stuck to his budget, only to have the owner come back because another bidders financing fell through.
- Sunil always has at least two exit strategies when purchasing a property; typically developing and selling, or a long-term hold while renting the property out.
- You need to know your market to know if a deal is good or not.
- Dan gives examples of different housing market volatility to underscore how important it is to know the market.
- Understanding the history of the market also allows you to test your exit strategies to ensure you don’t lose money on a deal.
- You need to factor in how you are going to pay for the deal, or how you are going to finance.
- Financing terms affect your exit strategies and profitability.
- Working with real estate agents experienced in investment properties will assist you in finding deals.
- Spend time networking and attending meet-ups, which can allow you to meet real estate agents that you can partner with.
- Door-knocking on neighbors houses, and letting them know what the neighbors sold their property for, can open up new potential investment opportunities.
- Direct mail, paid digital marketing, organic digital marketing, signage, and the MLS are all successful forms of marketing to help find potential investment deals.
- Investing can entail active or passive involvement.
3 Key Points:
- If you overpay when initially purchasing an investment property, it’s highly unlikely you’re going to make money.
- Don’t rely on just one exit strategy when purchasing an investment property.
- You need to know your market to know if a deal is good or not.
Tweetable Quotes:
- “You really do make your money when you buy the deal.” - Sunil Saxena
- “Look for multiple exit strategies, don’t just rely on one.” - Dan Lesniak
- “If you don’t know the market, you don’t have a baseline to know if a deal is good or not.” - Dan Lesniak
- “Make sure your signs say ‘we buy homes’ “ - Sunil Saxena
- “Most of your better deals you’re going to find off-market.” Dan Lesniak
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