Find Undervalued Property and Profit: Ten Tips to Help Investors

Real Estate Advice that Worked for Us

I've ridden out the highs and lows of the real estate market, in good years and bad, especially since I grew up in the real estate business (one parent was a builder and investor). Before moving on to commercial real estate properties, our family actually bought undervalued homes, fixed them up and sold them. Eventually, I was able to use information learned through the years to find my current home, still worth far more than I paid for it (yes, even though the value has slipped a bit during a possible recession). I won't kid you about how tough things are in the real estate market right now. But I'm still convinced that undervalued property can be found and sold for a profit. It isn't something I'd recommend the average person do without having some courage - also known as a high comfort level with risk . Also, this advice is best for people who live or want to invest in midwestern properties, specifically in Indiana or nearby states. Those are the areas I know best and my advice is geared to that part of the country. If you've always dreamed about finding undervalued property and eventually flipping it or selling the buildings or homes for a profit, there is some basic information that can help you up your chances of turning a profit. Here are the top 10 tips I've used to make financially sound decisions:

Tip one: understand that finding undervalued property is not necessarily an instant road to riches for the average investor.

Yes, you could luck out. Perhaps you've seen those home flipping shows, ones like Flip That House and been stunned by the before and after photos as well as the home sales prices. I'm addicted to those shows, too. But I also understand the harsh reality that faces many real estate investors now. Based on my experience, it takes knowledge, an ability to crunch the numbers realistically and sell homes or commercial buildings for less than one might have gotten 3 years ago. Still profitable? Possibly - but not necessarily super profitable.

Bottom line: have realistic expectations.