DoorFly.com: Home Buying Advice for Real Estate Investors

I went to a real estate investor’s seminar the other night at CIREIA (Central Indiana Real Estate Investors Association). The guest speaker was a long time real estate investor who had a lot of interesting and effective home buying and selling advice. At first, some of the things he mentioned seemed like no-brainers. But, when I thought more about them, I realized there are probably a bunch of investors who overlook these.

Just because the numbers look good on paper doesn’t necessarily mean the home is a good investment. I thought this was a very interesting comment. As many investors would agree, the thought process that goes through our heads is: Are we getting a good deal on this home? What’s the ROI? How can I maximize my profits going into the deal? Even if the numbers to these questions are extremely positive, there are other factors that can affect your return on investment.

If you’re a man, have your wife, female friend or colleague check out the home before you make a deal. Most women have a great sense about the value of a home. They recognize aspects of a home that men quite often overlook. Many investors can get too caught up in the numbers and not step back and look at the other side of the investment which is…can I effectively lease or flip the property? This is important because a woman or Stay-At-Home-Mom is most often a key decision maker in renting or buying a home.

If the home doesn’t meet a woman’s expectations, than you could have trouble trying to lease or flip your property. For instance, a woman pays careful attention to details like the home entrance. From entering the garage to entering the kitchen, a woman can be very judgmental if the main arteries of the house are not convenient to access or are poorly designed.

According to a study by the Pew Research Center, “1,260 couples found that most women, regardless of the money they earn, either make major decisions in the home or share equal responsibility for such decisions.”

Source: It’s Official: Women Make Household Decisions – By Soni Sangha, About.com Guide to Stay-at-Home Moms

Once the numbers are good and you have the woman’s approval, than it’s time to negotiate real estate agent fees with a qualified real estate agent. By obtaining a portion of the real estate agent commission, you can add even more value to each investment deal.