How to Make Money With Real Estate Bus Tours
“Bus Tours” for home buyers have become vastly popular in recent months. They come in different varieties from “foreclosure bus tours”, REO bus tours”, “short sale bus tours” and “first time buyer bus tours”.
Some of these real estate bus tours are put on by real estate brokerages who use them to expose inventory to a group of buyers at a time.
Some are organized by investor educators, who teach how to evaluate deals, repairs, markets, and neighborhoods.
So, how can you make money on real estate bus tours?
It depends obviously on the quality of the properties that are being toured. As a new investor or an investor who is looking to get your own financing and using a down payment or cash, this can be a great way to compare deals, get some guidance and snap up a good buy.
Keep in mind that there is a group effect on these tours, which can mean that you may be tempted to “follow the heard” mentality and jump on a deal that’s really not that great just to not miss out. So, make sure you do your own due diligence – possibly after you tie up a promissing deal.
Bus tours can also be a great way to “syndicate” deals and demonstrate how profitable deals can be done. Investors who are in the trenches are most likely the ones who organize bus tours, rather than using bus tours to buy properties. But there is a lot that you can learn from this.
If you are more of a credit and cash investor who doesn’t have enough time to dig up wholesale deals yourself, a bus tour can be a great way to get good information about a market, exchange experiences with other like minded people, and build your confidence level before jumping in.
Make sure that you pre-screen the organizer of the bus tour. If you go o a bus tour with a real estate brokerage you can expect to see mostly MLS invetory. Make sure to ask about time on the market, and get a feel for submitting an offer below the list price.
On an educational bus tour, you can expect to get information on repairs, and how to manage rental properties, or how to handle a BPO on short sales. This type of information usually requires an upfront fee that often includes a local real estate seminar and the bus tour as well.
Download a free 40-minute video about the “Investor Cash Cycle” which includes a real estate bus tour experience.
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Category: Investor Bus Tours
