DS News

Obstacles of being a real estate investor

estate investor

estate investor

As many may assume, being a real estate investor is one of the most laid back, most accessible jobs globally. We decided to find if this was true by speaking with real estate investors and finding out what type of problems or difficulties they may face in everyday business. Each area in the United States is home to various cities with different style homes and markets. Some can be more competitive than others. I have taken a closer look into Philadelphia and Pittsburgh as a whole. To find out what obstacles they may face when it comes to acquiring homes, competition, and problems they face trying to turn a profit on distressed homes. They come across more than just one problem at a time, trying to juggle everything at once. Perfecting the art of closing deals and making money can take a lot of time. The more sales you do, the better you get at moving on to the next one. 

The Competition Can Be Hard

We buy houses Philadelphia companies exist extremely heavy in this large city. This city is home to one Millon fife hundred thousand people in counting. With such a large population and increasing house pricing, you can imagine the competition and investors may face in this city. Obtaining your next project is always something you need to focus on. You are filling your pipeline with your following potential projects. Some investors here to fix and flip twelve or more properties a year. It will allow a team to have a productive year in real estate. The same goes for Pittsburgh; they have a smaller population of around four hundred thousand. There are plenty of Pittsburgh cash home buyers out there looking to scoop up homes cheap. You may wonder what these companies do to get distressed real estate. A large handful of them focuses on getting a cold calling. They find a huge list of phone numbers in the desired area, and they call hundreds of homeowners a day to find one looking to sell. Others will use marketing methods through social media ads attempting to reach motivated sellers. Even some of the best have a well-designed inviting website bringing in organic traffic from Google for people searching to sell my house fast Philadelphia. Each investor may have their method of finding places. There is always competition; however, they decide to find homes. 

During Rehabbing a Home

If you ever watched HGTV, you may have seen an episode where a couple of guys go into a home and slap a coat of paint on a house and turn twenty to thirty thousand in profit. The reality is that is not ever the case, especially in cities like Philadelphia and Pittsburgh. Most of the homes in these areas were built in the early to mid-1900s. If you have ever stepped foot in a house this old, you understand the complications that can go wrong. For example, the plumbing is wholly outdated using terracotta or copper piping which is highly outdated and hard to work with or there using an ancient electrical system just waiting to trip out any day now. It is why a large portion of the rehabs on homes in these cities will need to be completely gutted, which requires tearing the entire house out front top to bottom. It is not an easy process to make happen. It requires around three months or more, depending on the extent of the rehab you decide to do. Building a home up from nothing can cost anywhere from $60,000 to $100,000 or more. Plenty of things can go wrong when doing rehab; you can face unreliable contractors. Brand new stuff you put into the home can break during the rehab costing you more money. 

Real estate investors 

Yes, we found it challenging to deal with the problems real estate investors handle on a day-to-day basis. When it comes to becoming one, you need to have many resources. You may need some capital to get started. If you decide to jump into real estate investing, you should find a mentor. Even if you are experienced in real estate investing, you can still learn more from having a mentor when you are fully invested in buying and selling homes for profit. You will find that it can be challenging at times. The most significant advantage you have is financial freedom. You will eventually build wealth and retire at a younger age. Owning property can be a blessing when it comes time to retire. When you are a real estate investor, you have the advantage of making your schedule and being your boss. Which for most people is very intriguing.

Exit mobile version