Wright Thurston, Sr. on the Basics of Real Estate Investing

If you’ve ever considered investing in real estate, the current market presents a number of excellent opportunities. With foreclosures still occurring at high rates and banks eager to make loans, investors have more options than usual. That said, you must still understand the basics of investing to avoid losing money and becoming discouraged. You should look for motivated sellers eager to make a deal.

Eager to clear their inventories, many banks now offer a number of foreclosed properties for especially low rates. Individual sellers may become motivated under a variety of circumstances. No matter the reason behind their desire to sell, you can benefit from the situation. Several sellers who do not wish to go into foreclosure will sell their property for less than its market value.

You must become diligent about following the market and never purchase a piece of real estate for more than 60 to 70 percent of the price at which you plan to sell it. Always remember that you will need to cover closing and holding costs, as well as any repairs needed to make it more appealing to sellers. You should still turn a significant profit after all of these expenses. As you negotiate prices, avoiding making the first offer. The ability to counter gives you leverage in the process and allows you to take into account the expenses expected for repairs or the costs of rehabilitation already completed.

Avoid completing your own renovations since it limits the number of properties you can flip at a given time. Try to develop working relationships with reliable, skilled professionals in your area. When purchasing a piece of real estate, limit your cash flow by not using your own money, if possible. Especially today, lenders are ready to make loans and many demand only a small percentage as a down payment. If necessary, consider hard money loans for the costs of purchasing and restoring the property.

About the Author

Throughout his career, Wright Thurston, Sr. has successfully navigated five different business fields, consistently developing financially strong companies. As an employee at IBM, he began investing in real estate, making $9,000 monthly after a little over a year. Wright Thurston, Sr. has owned commercial property in the United States, Central America, and Canada. Actively involved in the community, he donates to Rotary International, Junior Achievement USA, and various school boards, in addition to other charities.

Wright Thurston, Sr.’s Guide for New Real Estate Investors

Becoming a real estate investor requires time, patience, and knowledge. Jumping headfirst into the investment world may seem like the best method for learning, but this mistake could have serious consequences. You should take the time to read opinions and theories about investing—not just mine, but those from a number of sources. The more understanding you have when you start out, the better your chances of success. That said, you must not fear and delay making the first purchase. In addition, you should hold onto your actual job for as long as possible, as it offers an ideal safety net during the steep learning curve.

Maintaining a day job also facilitates working with banks and creditors, making it easy to secure financing for your purchases. When beginning to invest, you should identify clear goals and commit them to writing, which will provide the motivation necessary during times of frustration. These goals must include some type of plan for achieving them, which will help you verify their feasibility. If you cannot identify the steps that will get you to your goals, you need to improve your understanding of the process. Speak with experienced investors to create a solid plan, and encourage them to give honest opinions and open feedback.

Investors in your local area will give you better perspective on typical profit margins and the time necessary to close a deal. Your goals should be monetary rather than quantitative; in other words, strive for quality over quantity. Juggling a number of small deals becomes tedious and confusing. Instead, zero in on the deals with the greatest earnings potential. If you decide to enlist the help of a partner, make sure you actually need the individual’s help. They should have time, capital, experience, or knowledge to bring to the table. When both partners benefit from each other, a fruitful collaboration is born. If the partners do not complement each other, serious conflicts often arise.

About the Author

Known for establishing five separate businesses with million-dollar net worths, Wright Thurston, Sr. forged his career in real estate investing while working full time for IBM. At present, he frequently travels around the country, offering financial and investing advice to novices and veterans alike. Wright Thurston, Sr. also serves as an Executive Director at Melaleuca, Inc., which offers a variety of environmentally friendly, natural cleaning and beauty products.

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