People often marvel at the profits that can be made in “flipping” real estate. They wonder how someone made such a good deal – how did they buy a property for $50,000 and fix it up to make $70,000? There’s a simple trick that can help you improve your success if you’re looking to invest in real estate: volume bidding.
Most people will only look at one or two houses when they’re planning their investments. They don’t want to take the time, or they feel like once they’ve already spent the time investigating a house they need to go ahead and invest in it. Often, this forces them to up the price above what they would really be willing to pay – they feel committed, and they don’t want to lose all the work they’ve done. The trick to making a good profit is not to make this mistake. You can’t let yourself get dragged into this process – if you psychologically commit to buying a house, you’re not going to get a good deal. You need to set a price that will give you a good profit, make the offer, and walk off to the next house to do the same thing. This won’t get you all the houses you want – in fact, many will reject your offer as too low. But if you do it multiple times, eventually someone’s going to take it. If you make sure that every bid you make is one you’d be glad to accept, you’ll end up getting the good investment deals even if you only get a couple of owners to sell to you.