Dominican Republic Real Estate Blog
Exploring Real Estate Opportunities in the Dominican Republic: A Comprehensive Guide
The Dominican Republic is fast becoming a prime destination for international real estate investors. With its tropical climate, beautiful beaches, low cost of living, and growing economy, it’s no wonder people are flocking to this Caribbean paradise. In this guide, we’ll explore why real estate in the Dominican Republic is booming, what areas are hot, and how you can get started on your investment journey.
Table of Contents:
- Why Invest in Dominican Republic Real Estate?
– Strong Tourism Industry
– Affordable Cost of Living
– Favorable Real Estate Laws
– Growing Economy
- **Best Locations for Real Estate in the Dominican Republic**
– Punta Cana
– Santo Domingo
– Cabarete and Sosua
– La Romana
– Samana Peninsula
- **Types of Properties to Invest In**
– Vacation Homes
– Rental Properties
– Luxury Condominiums
– Land Investments
- **Navigating the Buying Process**
– Legal Considerations for Foreigners
– Financing Options
– Property Taxes and Fees
Tips for a Successful Real Estate Investment in the Dominican Republic
1. Why Invest in Dominican Republic Real Estate?
#### Strong Tourism Industry
The Dominican Republic is one of the most popular tourist destinations in the Caribbean, welcoming over 7 million visitors annually. This consistent influx of tourists creates a strong demand for short-term rental properties, vacation homes, and resorts. As tourism grows, so does the need for real estate, making this country a lucrative option for both experienced and first-time investors.
#### Affordable Cost of Living
Compared to other tropical destinations like the Bahamas or the Cayman Islands, the Dominican Republic offers a much lower cost of living. Whether you’re looking for a retirement home or a rental investment, you’ll find that your dollar stretches much further here. You can acquire a beachfront property or a luxurious condo at a fraction of the price you would pay in the United States or Europe.
#### Favorable Real Estate Laws
One of the most attractive aspects of buying property in the Dominican Republic is that foreigners have the same rights as locals. There are no restrictions on foreign ownership, and the legal process for acquiring property is straightforward. Additionally, there are no capital gains taxes on property sales, and property taxes are relatively low, making it easier to turn a profit.
#### Growing Economy
The Dominican Republic boasts the largest economy in the Caribbean, with continuous growth in sectors such as tourism, construction, and agriculture. This economic stability enhances the long-term value of real estate investments, as the country continues to develop its infrastructure, such as roads, airports, and commercial areas.
2. Best Locations for Real Estate in the Dominican Republic
#### Punta Cana
Punta Cana is the crown jewel of the Dominican Republic’s tourism industry. Known for its pristine beaches and luxury resorts, it’s a hotspot for tourists, retirees, and investors alike. Properties here, especially beachfront condos and villas, can generate high rental income due to the year-round demand from international travelers.
#### Santo Domingo
As the capital city, Santo Domingo offers a mix of historical charm and modern convenience. It’s the economic and cultural heart of the country, and the real estate market here ranges from high-rise condos to colonial homes in the historic Zona Colonial. For those looking for urban living with a vibrant culture, Santo Domingo is an excellent choice.
#### Cabarete and Sosua
These neighboring towns on the northern coast are ideal for those looking to invest in more laid-back beach towns. Cabarete is known for its water sports, especially kitesurfing, while Sosua is famous for its nightlife. Both towns are popular with expats and retirees, offering a growing market for vacation rentals and long-term leases.
#### La Romana
La Romana is home to Casa de Campo, one of the most luxurious resort communities in the Caribbean. Here, you’ll find golf courses, private beaches, and upscale villas. It’s a prime location for those looking to invest in high-end properties.
#### Samana Peninsula
This lush, mountainous region is a hidden gem, offering a quieter alternative to the more commercialized parts of the country. It’s perfect for eco-friendly developments, vacation homes, and boutique hotels, appealing to investors seeking to capitalize on the growing trend toward sustainable tourism.
### 3. Types of Properties to Invest In
#### Vacation Homes
If you’re looking for a personal getaway that can also generate income, vacation homes are a great option. Many investors choose to rent out their properties when they’re not using them, providing a steady revenue stream.
#### Rental Properties
Long-term rental properties are in high demand, especially in cities like Santo Domingo and tourist areas like Punta Cana. Investing in multi-family units or condos geared toward expats and tourists can offer consistent returns.
#### Luxury Condominiums
In resort areas like Punta Cana and Casa de Campo, luxury condos are popular among both local elites and international buyers. These properties are easy to manage and often come with amenities like security, pools, and gyms, making them appealing for short-term renters.
#### Land Investments
For those with a long-term outlook, purchasing land can be an excellent opportunity. As the Dominican Republic’s infrastructure develops, land values in prime areas like Punta Cana and Samana are likely to increase.
—
### 4. Navigating the Buying Process
#### Legal Considerations for Foreigners
The Dominican Republic has foreigner-friendly real estate laws, but it’s essential to hire a local attorney to ensure a smooth transaction. Your attorney will help you with title searches, contracts, and tax matters.
#### Financing Options
While some buyers pay cash, many take advantage of financing options available through local banks or international mortgage lenders. Interest rates are generally higher than in the U.S. or Europe, so it’s worth comparing terms.
#### Property Taxes and Fees
Property taxes in the Dominican Republic are relatively low compared to other countries. Buyers should budget for a 3% transfer tax, plus legal fees. Properties valued under a certain threshold may be exempt from annual property taxes, making it a cost-effective investment.
—
### 5. Tips for a Successful Real Estate Investment in the Dominican Republic
– **Work with a Local Realtor**: A real estate agent who understands the local market can help you find the best properties and negotiate favorable terms.
– **Visit Before You Buy**: While online research is essential, visiting the property in person will give you a better sense of its condition and surroundings.
– **Consider Rental Potential**: If you plan to rent out the property, choose a location popular with tourists or expats to ensure a steady income stream.
– **Check Infrastructure and Services**: Make sure the area has reliable access to electricity, water, and internet services, especially in more rural locations.
– **Understand the Market Trends**: Some areas are more speculative than others, so do your homework on market trends and future development plans in your chosen area.
Investing in real estate in the Dominican Republic offers an attractive combination of affordability, growth potential, and lifestyle perks. Whether you’re looking for a vacation home, rental property, or land for future development, this tropical paradise offers something for everyone. By understanding the local market and working with trusted professionals, you can make a smart investment that provides both financial returns and personal enjoyment.
– Real estate in the Dominican Republic
– Dominican Republic property investment
– Buying property in the Dominican Republic
– Best places to invest in Dominican Republic real estate
– Real estate market in the Dominican Republic
– Dominican Republic vacation homes
– Punta Cana real estate
### Luxury Real Estate in Cabarete and Sosua: A Premier Investment Opportunity in the Dominican Republic
The northern coast of the Dominican Republic is home to some of the most desirable luxury real estate in the Caribbean, particularly in the towns of **Cabarete** and **Sosua**. Known for their beautiful beaches, world-class water sports, and vibrant expat communities, these two towns offer a unique blend of laid-back Caribbean charm and upscale living.
In this article, we will explore why Cabarete and Sosua are top destinations for luxury real estate, what types of properties are available, and how you can invest in this growing market.
#### Table of Contents:
- **Why Choose Cabarete and Sosua for Luxury Real Estate?**
– Prime Location on the Northern Coast
– Thriving Expat and Investor Communities
– Year-Round Tropical Climate and Natural Beauty
– High Return on Investment for Vacation Rentals
- **Luxury Real Estate Market in Cabarete and Sosua**
– Beachfront Villas
– Ocean-View Condos
– Exclusive Gated Communities
- **Key Areas for Luxury Properties**
– Cabarete Beachfront
– Sea Horse Ranch in Sosua
– Encuentro Beach
- **The Buying Process: How to Invest in Luxury Real Estate**
– Legal Considerations for Foreign Buyers
– Working with Local Realtors
– Property Taxes and Fees
- **Tips for a Successful Luxury Real Estate Investment**
—
### 1. Why Choose Cabarete and Sosua for Luxury Real Estate?
#### Prime Location on the Northern Coast
Cabarete and Sosua are ideally situated along the stunning **north coast** of the Dominican Republic, offering easy access to both natural beauty and modern amenities. The area is a short drive from **Gregorio Luperón International Airport** in Puerto Plata, making it convenient for international buyers. With a mix of adventure, culture, and relaxation, this region appeals to both permanent residents and tourists looking for a luxurious retreat.
#### Thriving Expat and Investor Communities
Both towns are home to thriving expat communities, particularly from North America and Europe. This has led to the development of upscale services, gourmet restaurants, and international schools, making it a comfortable and attractive place for foreign buyers to settle or invest. Additionally, the growing number of high-end developments and gated communities ensures that buyers have access to premium properties.
#### Year-Round Tropical Climate and Natural Beauty
The region enjoys a **year-round tropical climate**, with temperatures ranging from 75°F to 85°F (24°C to 30°C). Cabarete is famous for its **kite surfing**, while Sosua offers beautiful coral reefs for **snorkeling** and **diving**. Whether you’re looking to unwind on pristine beaches or indulge in water sports, the natural beauty of these towns makes them a perfect fit for luxury living.
#### High Return on Investment for Vacation Rentals
Cabarete and Sosua are popular tourist destinations, especially among water sports enthusiasts and sun-seekers. This high demand for vacation rentals means that luxury properties can generate significant rental income. If you’re looking to invest, purchasing a beachfront villa or a condo with ocean views can be a profitable venture, particularly in high season from December to April.
—
### 2. Luxury Real Estate Market in Cabarete and Sosua
#### Beachfront Villas
**Beachfront villas** in Cabarete and Sosua are the epitome of luxury living in the Dominican Republic. These properties often feature direct access to private beaches, infinity pools, outdoor entertainment areas, and high-end finishes. Whether you’re looking for a modern architectural marvel or a more traditional Caribbean-style home, beachfront villas offer unparalleled views and privacy.
#### Ocean-View Condos
For those seeking a luxurious yet more manageable investment, **ocean-view condos** are a fantastic option. Many of these condos are located in gated communities or luxury resorts, offering amenities like 24-hour security, swimming pools, gyms, and direct beach access. They are also easier to rent out as vacation properties, making them a great choice for investors looking to capitalize on the area’s growing tourism industry.
#### Exclusive Gated Communities
Gated communities like **Sea Horse Ranch** in Sosua provide an added layer of exclusivity and security for luxury buyers. These communities are known for their beautifully landscaped grounds, world-class amenities such as tennis courts, equestrian centers, and private beach clubs, and high-end properties ranging from large family homes to ultra-modern villas. These are ideal for those who want privacy while still enjoying a social, active lifestyle.
3. Key Areas for Luxury Properties
#### Cabarete Beachfront
Cabarete is internationally renowned for its **windsurfing and kiteboarding** scene, attracting an affluent, adventurous crowd. The beachfront area offers a range of luxurious villas and condos, often within walking distance to trendy restaurants, upscale bars, and boutique shops. Cabarete Beach is an ideal location for investors looking to purchase vacation rentals or a second home with access to both the beach and the vibrant local culture.
#### Sea Horse Ranch in Sosua
**Sea Horse Ranch** is one of the most prestigious gated communities in the Dominican Republic. Located just minutes from downtown Sosua, this upscale development offers luxury villas surrounded by lush tropical gardens, private pools, and access to world-class amenities. It’s a top choice for those seeking privacy, exclusivity, and a well-established community.
#### Encuentro Beach
Situated between Sosua and Cabarete, **Encuentro Beach** is known for its excellent surfing conditions and secluded vibe. This area offers a blend of luxury villas and boutique-style homes with sweeping ocean views. It’s perfect for buyers who want the serenity of a quieter beach but still be close to the amenities and excitement of the larger towns.
4. The Buying Process: How to Invest in Luxury Real Estate
#### Legal Considerations for Foreign Buyers
The Dominican Republic is very open to foreign property ownership, and non-citizens enjoy the same property rights as locals. However, it’s crucial to work with a qualified attorney who can ensure the property’s title is clear and help you navigate the legal aspects of the purchase.
#### Working with Local Realtors
Partnering with a reputable local realtor who specializes in luxury properties is essential. They can provide insights into the market, help you find properties that match your investment goals, and negotiate the best deals on your behalf.
#### Property Taxes and Fees
Luxury properties in the Dominican Republic are subject to an annual property tax (IPI) of 1% on the value above approximately $155,000 USD. Additionally, buyers should budget for closing costs, including legal fees and a 3% property transfer tax. However, these costs are lower than in many other Caribbean destinations, making the Dominican Republic a more attractive option for luxury real estate investment.
—
### 5. Tips for a Successful Luxury Real Estate Investment
– **Research the Market**: Understanding the local luxury real estate market is essential for making a sound investment. Research current trends, property values, and future development plans to ensure you’re making a smart purchase.
– **Consider Rental Income Potential**: If you plan to rent out your property, choose a location that’s popular with tourists and expats, such as Cabarete Beach or Sea Horse Ranch. This will increase your chances of generating a strong rental income.
– **Work with Experts**: From real estate agents to legal advisors, having a team of local experts can help you avoid common pitfalls and streamline the buying process.
– **Inspect Before You Buy**: It’s always a good idea to visit the property in person to ensure it meets your standards and expectations. Luxury properties often come with unique features, and seeing them firsthand will give you a better understanding of their value.
### Conclusion
Luxury real estate in **Cabarete** and **Sosua** offers a blend of breathtaking natural beauty, modern amenities, and lucrative investment opportunities. Whether you’re looking for a permanent residence, vacation home, or an income-generating rental property, these two towns provide the perfect setting for upscale living in the Dominican Republic.
With a booming tourism industry, favorable property laws, and growing demand for high-end accommodations, now is an excellent time to invest in this idyllic part of the Caribbean. By partnering with local experts and carefully selecting your property, you can enjoy both the lifestyle and financial benefits of owning luxury real estate in Cabarete and Sosua.
#### SEO Keywords:
– Luxury real estate in Cabarete
– Luxury real estate in Sosua
– Cabarete beachfront villas
– Sosua gated communities
– Sea Horse Ranch properties
– Cabarete luxury condos
– Sosua ocean-view real estate
– Investing in Dominican Republic luxury properties
Here are tips and strategies for real estate investors in the rent to own homes arena.
The article discusses to to buy low, sell high, achieve a positive cash flow and use as little out of pocket cash as possible.
Keywords:
rent to own homes, lease purchase homes, rent to own real estate properties, for sale by owner
Article Body:
First and foremost, this article is for investors. As an investor, you should not (must not) have any emotional ties to any of your properties. You are in this business to make a fair and honest profit, and you will sell your home(s) when it makes sense to do so. Your goals should be to , generate a positive cash flow while you own the house and use as little of your own money as possible. OK, so now how should you go about buying a house for your rent to own inventory of homes?
Location: Stay in your comfort zone. If you are not familiar with the laws and regulations in other states, stay in your home state. If you must “touch and feel” (see) your properties, stay within a comfortable driving range. If you are not comfortable with certain types of neighborhoods, whether it be an urban blight area or upscale posh area, don’t go there. There are plenty of opportunities in your comfort zone. All you have to do is find them and BE PATIENT.
Buy low: The best way to do this is to find a motivated seller. Here are some obvious (and some not so obvious) ways to find that seller:
1. Search the listings in your preferred location(s) for properties that have been listed for more than 90 days.
2. Check public records for foreclosures and/or tax delinquencies.
3. Read the obituaries in your preferred location(s). There might be a house in the estate that must be sold.
4. Check public records for divorce filings. Many times a house must be sold to satisfy a Judgment.
5. Advertise in local newspapers and on the web (for example, place a free wanted ad on
6. Look for a high growth area where builders are extremely active. You will discover there will be people who are unable to sell their home because the builder incentives are capturing all the qualified buyers. These neighborhoods are usually very desirable, and there are motivated sellers unable to sell. That sounds like an opportunity, doesn’t it? Here is your advantage. The person that you will try to find to rent the house after you buy it probably is not a qualified buyer to the builder. Builders want bank qualified buyers. Typically, people who are seeking a rent to own opportunity do not qualify for a mortgage with a bank. All you have to do is have a good renter/buyer lined up to move in to that desirable neighborhood
7. Let your good renter/buyers find their own rent to own home. If you have a good prospective renter/buyer that is asking for your help (and you will if you do your job properly), give them the opportunity to find their own rent to own home. You have to set the ground rules, and they will think you walk on water. It is strongly suggested you develop a relationship with a good realtor who will follow your ground rules, take your renter/buyers on showings (most homes are listed anyway) and save you the time of doing this yourself.
Bottom line – If you find a motivated seller, you should be able to buy the property below appraised value.
Sell high: In this scenario, sell high refers to the option price you will set with your renter/buyer. Keep this in mind – If your renter/buyer was able to qualify for a mortgage today, he/she would probably not be your renter/buyer. He/she would simply buy a house without your help. Furthermore, the renter/buyer is probably a frustrated renter who wants to be a buyer. In other words, you have a motivated prospect, and that prospect should understand that you are a business person who is entitled to a FAIR profit in exchange for the risk you will take to help them. Bottom line – your prospect is probably not very price sensitive, and he/she will probably accept any fair number. In my opinion, a fair option price should be the current appraised value (not necessarily what you paid for the property) plus an amount equal to the average annual rate of increase compounded annually for each year of the option term. Allow me to explain by way of example:
First, try to keep all of your option terms to one year. It’s to the seller/landlord’s advantage. So, assume you own a house with an appraised value of $150,000 and prices have been increasing an average of 8%. For a one year contract, you should set your purchase price at $162,000 ($150,000 + 8% of $150,000 or $12,000); a two year contract, $175,000 ($162,000 x 1.08 = $174,960).
Positive cash flow: Cash flow is defined as the amount of money you receive per month minus the amount of money you spend per month. Obviously you want that to be a positive number.
1. First let’s look at how to minimize the amount of money you spend per month:
Your mortgage loan: You could put a large amount down to minimize your monthly payments, but that would not be wise. The best thing you can do is find a good lender who is willing to work with you. They are out there. A good lender will realize that you will bring in many deals, and most up front fees should be greatly reduced if not eliminated. Ideally you should be able to borrow up to 90% LTV amortized over 30 years without having to purchase mortgage insurance. You should avoid high interest fixed rate loans. You plan to sell the house in a short period of time so a 30 year variable rate loan with a fixed interest rate period of 3 or 5 years will be much better. In our example, we borrow $135,000 at 5% amortized over 30 years. That is approximately $725 per month (principle and interest) Furthermore we use an additional $300 per month for taxes and property insurance.
The lease: Your tenant is not just a lessor. Contractually he/she has the right to become the owner of the home. As such the tenant should develop a "pride of ownership" attitude and be responsible for most of the minor maintenance issues that arise with any home.
Ownership: Get a good real estate attorney and an accountant. They should be able to explain the advantages/disadvantages of personal versus LLC ownership including liability issues. This will help you determine the extent (and cost) of insurance you will want to have.
2. Now, let’s look at how to increase the amount of money you receive every month:
Here’s a little known fact – Over 90% of all people who enter into a rent to own agreement fail to exercise their option after one year! Do you remember I said to try to keep all of your contracts to one year? Besides maintaining better control of your investments, this little known fact can be hugely advantageous to you, the business person. Now, PLEASE keep this in mind; if you have a GOOD tenant who is unable to exercise his/her option, WORK WITH THEM. You should renegotiate a second year to your advantage, but not one that would force a good tenant to leave.
OK, here’s what you should consider (by way of example).
Using the above example, a reasonable contract might stipulate an option consideration of $8,000 (to be fully applied toward the down payment upon exercising the option) and a monthly rent of $1,100 per month of which $100 will be applied toward the down payment providing that monthly rent payment was made on time. After one year, assuming all rent payments were made on time, the tenant/buyer will have accumulated $9,200 in credits ($8,000 plus $100 per month). One can view the actual monthly rent as $1,000 assuming the option is exercised. If the tenant/buyer fails to exercise the option for any reason, That $9,200 is forfeited by terms of the contract.
To increase your cash flow, offer the tenant/buyer greater credits in exchange for a higher monthly rent. For example, in exchange for $1,300 per month, offer the tenant a $400 rent credit for every on-time payment received. Now, it can be viewed as a monthly net rent cost of $900, and the total equity built would be $12,800. If you present this properly, you can let the tenant negotiate for higher rent payments! You will have a much better cash flow, and there will still be a nice profit if the option is exercised provided you properly purchase the house. If the option is not exercised (90%+ odds it won’t be exercised), you keep all the rent monies paid. But, again, PLEASE keep this in mind; if you have a GOOD tenant who is unable to exercise his/her option, WORK WITH THEM. You should renegotiate a second year to your advantage, but not one that would force a good tenant to leave.
<B>Use as little of your own money as possible: With diligence and patience, you will be able to buy a home for less than appraised value. Rather than buying the house at the reduced amount, pay the appraised value and take the difference as an allowance for, say, remodeling. Take this money in the form of a bank check. Using the above example, assume you are able to negotiate a purchase price of $140,000 (this is possible, in fact, doable if you do your homework). Tell the seller you will pay $150,000, and they must give you a bank check for $10,000.
Now you will finance 90% of the purchase price of $150,000 which equals $135,000. You need a down payment of $15,000. Your actual out of pocket cost is $5,000 because of the $10,000 allowance.
Summary: We will assume the tenant/buyer takes advantage of getting additional rent credits, makes all rent payments on time and the option is exercised after the first year. Using the above example (which is based on a composite of actual deals) and not accounting for miscellaneous costs (for simplicity purposes), here is the deal:
1. Cash spent – $17,300 ($5,000 out of pocket down payment plus $1,025/month P.I.T.I.)
2. Cash received – $23,600 ($8,000 option consideration plus $1,300/month rent)
3. mortgage obligation: $135,000
4. Received from sale – $149,200 ($162,000 minus $8,000 option consideration minus $4,800 rent credits)
Profit from cash flow = $6,300 ($23,600 minus $17,300)
Profit from sale = $14,200 ($149,200 minus $135,000)
Total profit = $20,500
$20,500 profit divided by $5,000 out of pocket = 410% RETURN IN ONE YEAR!!!
If the tenant does not exercise the option, it can only get better.
Is It Time To Buy A House?
Summary:
At some point as you’re writing out your rent check, you get to the point where you look at the amount and think to yourself – at this rate, I could BUY a house. If you’re fed up with paying rent every month that’s high enough to finance a mortgage, it may be time to take a serious look at what it would take for you to get a mortgage loan and buy a home of your own.
Keywords:
loan, home loan, mortgage, real estate, buy, home owner, home owner loan, secured loan, home improvement
Article Body:
At some point as you’re writing out your rent check, you get to the point where you look at the amount and think to yourself – at this rate, I could BUY a house. If you’re fed up with paying rent every month that’s high enough to finance a mortgage, it may be time to take a serious look at what it would take for you to get a mortgage loan and buy a home of your own. How do you know if it’s time to stop renting and time to start investing your monthly payment in a house of your own?. Are you planning to stay put in the area? The first question to ask yourself is how long you are planning to stay in your new home. If the answer is ‘less than two years’, then it may be to your advantage to continue renting for a while longer – and use the time to build up your credit more strongly. If, on the other hand, you’re planning to stay in one residence for more than a few years, buying makes more sense. Owning a home puts down roots, and makes you a more stable member of the community. It also makes more financial sense to buy if you’re going to hold onto the property for more than two years. Unless you ‘flip’ properties – buy cheap, make repairs and sell high – it’s nearly impossible to recover your investment if you own a house for less than two years. How’s your credit? If you’ve never checked your credit score or read your credit report, this is the time to do it. The higher your credit score, the easier it will be for you to qualify for a mortgage, and the better the terms of the mortgage for which you’ll qualify. If you find problems in your credit score, you can take steps to fix them before you apply for a mortgage. This includes erroneous information on your credit report or extenuating circumstances that may have led to a missed payment or two. In many cases, minor credit problems can be repaired with no more than a few months of on-time payments. How much house can you afford?Figuring out how much of a mortgage you can take on can seem almost like some sort of voodoo. You know how much you can afford to pay per month for a mortgage payment – but how does that translate into how much you can afford to pay for a house? The easiest way to work it out is to use an online mortgage calculator. Many web sites that offer credit and loan information have mortgage calculators available that will work in either direction – plug in the asking price of a house and your expected interest rate and the amount of your down payment, and the calculator will tell you an estimated monthly payment. Or plug in your income and expenses, the amount of the monthly payment you can make and the length of time you want to repay it – and the calculator will tell you the most expensive house you can comfortably buy.
Making Money in Real Estate
Summary:
This single step can double your real estate investing income in the next 90 days.
Keywords:
Real Estate, Real Estate Investing, Getting started in real estate, real estate investing tips, real estate investing course, make money in real estate, real estate training
Article Body:
WARNING: This single step can double your real estate investing income in the next 90 days.
Decide on your target market
Determine what your target market will be. I know from experience that it is really easy to want to do EVERYTHING: Foreclosures, probate, absentee owners, abandoned properties, tax liens, lease options, and the list goes on and on! But, to be a successful real estate investor and to really make money in real estate, you’ve got to focus! Drill an inch wide and a mile deep!
Let me guess, you heard a inseminate on short sales and you wanted to dive in! Then, you buy the probate home study course you just found online!
I am guilty of this! I went to a 3 day real estate training several years ago. Every single strategy, technique or tactic that was taught was “it”! So, promptly upon leaving, I decided to try everything all at once… The thing about this is that we’re so often looking for the magic pill, and unfortunately, no such elixir exists in real estate.
Believe me. I understand your frustration when everything seems to contradict everything else. So, I’m going to clear things up for you! You don’t have to do everything in real estate. You have to do one or two things well. So, perhaps you work with foreclosures and within the probate system for your real estate investing focus. You become the expert in those areas.
You learn one market and how to negotiate, overcome objections, solve problems that come up and so forth. I systematized it and then move on to the next market and let the system run on autopilot.
So, first things first…
1. Pick your niche:
Foreclosures, probate, absentee owners, abandoned properties, farming neighborhoods, tax liens, code violations, etc.
2. Determine your method of communication:
Direct mail, driving for dollars, telemarketing or mass media advertising
3. Set your real estate marketing budget:
Figure out how much you are going to spend per campaign. A campaign is not a monthly budget. Keep in mind a real estate marketing campaign is not necessarily a monthly budget. You may spend $100 one month and $500 the next simply because of what marketing tactics you are using.
4. Implement
Implement your plan – and stick to it! You’ve got to commit to your real estate marketing or else you’ll be throwing money out the front door rather than really making money in real estate! Be patient and stay in for the long haul and the deals will come. Just remember that real estate marketing is an investment into your real estate business and constant investment results in a constant stream of income.