Editing 1course Real Estate (section)

==== Real-Life Example: Finding and Evaluating a Profitable Property ====
Imagine you’re targeting a neighborhood with older homes. You send out direct mail to property owners facing foreclosure. Sarah, a motivated seller, contacts you about her distressed property. Here’s how you proceed:

* '''Lead Generation:''' Your direct mail campaign generates a lead from Sarah. She’s eager to sell quickly to avoid foreclosure.
* '''Preliminary Analysis:''' You conduct a preliminary assessment using online tools and determine the property has potential.
* '''Estimating Repairs:''' You visit the property and note needed repairs: a new roof, updated electrical, and cosmetic improvements. Contractors provide quotes totaling $30,000.
* '''Running Comps:''' You find comparable properties in the area that sold for $250,000 after similar renovations. The ARV for Sarah’s property is $250,000.

Based on your evaluation, you negotiate a purchase price of $150,000 with Sarah. After repairs, the potential profit margin looks promising, making this a lucrative deal.