I just finished watching an episode of “Leverage” on TNT. I don’t want much TV at all, but I enjoy the show when it’s on. It’s about a team of grifters who use their ‘skills’ for good and helping others in need by leveraging their unique talents against their opponent.
While real estate investing is not necessarily on the same spectrum of moral right and wrong (unless you’ve been a victim of the recent foreclosure and bank mess), getting leverage is a key to achieving your investment objectives. How so? Here are a few examples:
Flipping Houses
What kind of leverage could you get to increase your ability to flip houses? How about having private investors ready to fund your acquisitions for a fast 7-day close? Or getting educated in advance on repair costs so that you can walk through a property one time and be able to provide a reliable offer on the spot instead of unnecessarily dragging out the negotiation process? Both of these will give you a leg up to sellers by providing immediate VALUE (which is the key to every transaction).
Cash Flow Investors
Are you more of the landlord type? Get some leverage in your rentals by building relationships with solid property managers who can effectively screen your potential tenants. You can also network with active wholesalers and have fast cash ready to go so that you get first crack at the next quality rental property that becomes available. Cash flowing in Hawaii is hard right now — you want to be at the top of investors’ cash buyer lists.
Buying a Primary Residence
No matter your Hawaii real estate investment objective, getting leverage means being ready to act and having the right pieces in place to bring value to your deal partner. Focus on this, and you can prosper even in a rough economy and housing market.