There are many successful businesses in the world today. Each one started out with a vision. A dream to become the leader in their field. Many times these businesses ran into stumbling blocks. They went down paths which turned out to be failures. The thing that made them successful even with the many failures at different ventures were the marketing strategies they used. There are many tips you can learn from these businesses to become successful in your venture of investing in bankruptcies. Here are just a few.
1) Study the Market. Learn what is available and how you can use it to make money. There are some areas where the best investments are warehouses. Other places are doing great with multi-family rental units. Sometimes you may find the best strategy is to buy and then sell the properties. When you see what is working for other investors you should do the same.
2) Keep investments to a minimum. Never put more money into a property than you can make on it. When you pay full market value for a property then you are just asking for a loss. You are investing in bankruptcies to make money. You want to get the best deal you can on the properties you are purchasing.
3) Determine sale time. You do not want to buy in an area where the properties have been for sale for six or eight months. You want a market that is moving. You want to determine how long you would have to hold onto a property before you can sell it for a profit. You can only learn this when you research the sales that have taken place in the community. This will also give you a good understanding of what you could sell your properties for when it comes time to market them.
4) Supply and demand. Just because you see a property you know is great, does not make it a good investment. A one or two bedroom house is great for a neighborhood filled with senior citizens. Finding this same home where there are large families would just cost you money. You could probably sell it but not as fast as a three or four bedroom home. Find out what the people in the area are looking for before you decide on which investment to buy.
5) Joint ventures are profitable. There are many companies which team up to make their products more accessible to the public. Sometimes companies use the knowledge of each business to make a successful venture. The same is true in real estate. The truth is if you do not know then ask. You may have only invested in houses. You have no experience in commercial properties. This is when you should find a real estate investor who knows about commercial properties to help you seal the deal. With your finances and their knowledge you can make a large profit. You may also find the deal was not as great as you thought it was. Learn from the experience of others who have invested in bankruptcies.