Seven Rules for Real Estate Investing

Rule ONE: Know Your Numbers

One of the craziest things that you see on the TV shows is they buy these properties, fix them all up and then they bring a realtor in and they say “what are we going to sell it for?” 

This is intended to be drama but actually is comedy to real investors. No one does it that way. You start by knowing what it is you're going to sell it for. Then you calculate what the rehab is going to be. Then you back into an offer price that includes a margin for error or surprises, plus your profit. That's how you come up with your offer price.

For a deeper dive, including rental numbers, click here.