|Building wealth quickly|
Many investors wait for everything to be in line before they move on to the next step in the process. As an example, an investor may have a ratified contract on a foreclosure that needs repairs and wait until the house has settled and then start doing the repairs. As soon as the repairs are all complete, they then move on to the marketing stage of the investment that they have made in order to sell it.
This is completely unnecessary and increases carrying cost which has to be factored into the profit from the purchase and sale of the foreclosure. Carrying costs are the same as lost profits in the best case scenario. It is fair to say that it is factored in as lost income if the investor had been more proactive. It is even fair to say that the expense of paying the mortgage during the carrying phase is an expense rather than lost profits. The wise investor waits only for the ratified contract and then begins to market the property in the hopes of finding a buyer that is ready willing and able to purchase even if the house needs some repair.
By advertising early we are able to give the end buyer the chance to select their own colors for carpet and paint if the home requires it. Either way the carrying costs can be dramatically reduced if we market the property prior to taking possession. This way we can move on to the next deal more quickly as well and increase our volume over the course of time.