==== ==== Real Estate Power Investor http://blockman12-G.webcopycat.com ==== ==== Steps to Real Estate Investing Success http://blockman12-G.webcopycat.com Real estate investing during a faltering economy can be a difficult task, as the value of real estate is decreasing and less and less consumers are financially able to pay competitive prices. So when investing in real estate, you will need to understand the current market if you want to achieve the highest real estate investing success. Real Estate Investment is an increasingly popular investment practice which, in theory, involves a simple process purchasing real estate to then rent back out to customers. However, especially in an uncertain economy like we are currently facing, achieving real estate investment success can prove to more complicated than just buying and leasing properties. Potential investors should be wary of the fact that their success is largely dependent on their ability to invest wisely in real estate. Real estate investment consists of investing money into real estate with hopes of amassing profits. Generally speaking, real estate investments involve buying real estate, renting to consumers, and eventually selling when prices are high to capitalize on appreciated market value. Real estate can refer to any stationary property situated on land that is bought and sold, ranging from apartments to small fixtures such as sheds or garages. The process by which you can attain real estate investing success can be broken down into several basic yet important steps to your success: 1. Choose your niche market. As a real estate investor, you will probably want to settle on a market in which you are most apt to be successful. Whether buying, selling, or renting, business is more likely to be profitable if you are working in the place that best fits your persona needs. 2. Decide on a Plan. You will need to determine what it is that you hope to achieve through you real estate investment. Some investors will choose to rent their real estate for long periods of time while others might make renovations and then sell when the market is high. Regardless of what plan you choose, there is always room to profit. However, choosing your plan beforehand can better prepare you to make business decisions about your real estate investment when profitable opportunities are at hand. 3. Look into Professional Advice. Professional real estate investment courses can assist you in achieving real estate investing success. By learning the specialized techniques of professional traders, you will be able to combine the knowledge of others into making your own personal strategies. 4. Execute. Once you decide on a plan and have prepared yourself for real estate investing success, execute on your investments according to your decisions and the information you have learned.
Real Estate investment courses are not only a source of professional strategies; they also provide beneficial information about the ins and outs of real estate investments. If you plan on obtaining real estate investment success, you should consider the many advantages that can be gained from real estate investing courses. Real Estate Investment training courses can effectively prepare you for the success that you have been hoping for.
Do I Need A Real Estate Investing Course?
Taking an real estate investing course will introduce lots of helpful information needed in todays market. Most investors find that their motivation and desire to succeed is all the help needed. However, there are some that may need additional guidance with their projects. The real goal is understanding the basics of real estate investing. These basics are essential to a successful career in real estate. For starters, here are a few things that an investors course will teach: Negotiations: As you begin investing, you will find that negotiation is a major aspect of real estate investments. In terms of time, negotiation may seem like a small part of an extensive process, but the rewards resulting from negotiation can be quite financially rewarding. Learning to negotiate through real estate investing courses will prove beneficial during your endeavors with real estate investment. Using Trusts: Trusts involve companies that channel real estate transactions with investors in a way that is more profitable. By using trusts, you can operate with less taxes while protecting the assets of you real estate in the event of a dispute. If you are a new investor, trusts may seem like an undesirable and unnecessary investment tool, but the effective form of protection offered by this system can easily rove worthwhile. Managing Your Real Estate Investment: Owning a real estate investment can be a financial burden, and can be a headache even more so if you are uninformed about how to manage your investment. When managing a real estate investment, you are essentially operating a home-based business. The overall nature of real estate investing requires investors to incorporate proper management techniques in order to be successful. Real Estate investing courses provide a detailed outlook on management, an unrivaled perspective that can only be given from experts who have managed real estate investments. How To Buy and Sell: Real Estate investing courses will provide worthwhile education about buying and selling real estate, such as information financing your purchase or tips for finding the best deals. If you are a beginner user, it will be difficult for you to access this information without the help of an experienced source. Since this stage is the first in real estate investing, it is important that you learn these tips about buying and selling before you actually get started. General Tips & Information: There are many insignificant aspects of real estate investments that can actually be very important when conducting business. Real Estate Investing courses contain information that, while trivial, can be just as important to success in the long run. Real Estate Investing courses serve as a source for information that is often times unobtainable elsewhere.
All in all, the resulting advantages of consulting with real estate investment courses are countless. The knowledge you learn will advance your real estate investing success both directly and indirectly, as each piece of information will help you to acquire useful techniques while simultaneously gaining valuable experience in real estate investment. Investors of all calibers will find that real estate investing courses are a more than worthwhile tool in real estate investment.
Tips on Flipping properties: 1. When flipping a house, the goal is to make money! The money you make from the house is made when you actually buy the property that you would like to flip. Therefore, when making your purchase, you must consider costly repairs and upgrades. Many people buy houses that they intent to turn into mansions (for example), but then soon realize that the house will either be too expensive to sell, or the repairs are adding up to be more than the purchase. Buying a home at 67,000 and making a sell of 75000 is not a profit! 2. Be sure to inspect the home It is definitely work the money to get a complete inspection done on the home. This is the step that you can not AFFORD to skip. Inspectors are trained professionals who are able to find errors that you may simply over look in a home. During the contracting agreement for the house, it is smart to get 7 days to have a complete inspection. This way you have enough time to see all the repairs that will be needed for the property; at which time you will have the option to negotiate, or opt out of the contract completely. 3. Outsource the work: - As an investor, you do not have time to do tedious repairs to a property. Your job is to find properties, and delegate the work that may be needed. Outsourcing could also be time consuming. Thats why it is important to create a list and relationship with a group of contractors. This way, you can get started on your project immediately instead of spending time searching for a contractor. Most flips take anywhere from 2 -4 weeks. Developing relationships will allow for you to save money, meet deadlines, but most importantly you will have your property on the market in a sufficient amount a time. 4. Market Value Rule: This rule is simple. When flipping a house, it is important to place the house for sale 1-2 percent below the market value. This will help for a speedy sale, thus allowing you to move on to more projects. Remember that your sale is actually made at the purchase of the property. Therefore, its important to sell the property without being greedy. There is no need to keep a property on the market an extra 2 months, just to make a profit. In all actuality you are loosing money. Your goal is to sell the property based on its competition. If the property is priced too high, buyer may wish to find a better house in the same price range. 5. Have an agent You are an investor; DO NOT try to sell your own house. Use your time to find other houses to invest in. If you are doing well, and are able to afford your own in-house agent; then this is fine. Allow your agent to take care of all the details around the selling of the house. If you choose to outsource an agent, it would be wise to outsource from your list that I mentioned in the earlier steps. If you remember these few steps, you will be successful in flipping properties. However, continue to research your niche so that you are able to offer the best service available for your buyers. The
market is ever changing, and when you have an understanding of the people it will make purchasing properties a whole lot easier.
Staying Motivating Through The Market Crash Its no secret that the housing market is suffering due to the economic changes that todays citizens are facing. Job lost is on the rise and more people are realizing that the home they purchased years ago; is actually too expensive for them after all. Others are finally financially able to purchase a home, but are finding it hard to get the support from the lenders that they need. However, it is important to remember that a positive attitude will succeed any disaster. If you are motivated and passionately involved, I am sure that you make still make a sale even in todays market. Did you know that real estate value in most metropolitan areas double ever 10 years. This means an average of 100% increase about every 10 years. In short, this also means that real estate values must correct themselves within their 10 year cycles. From history we know that real estate values always double. Therefore, your existing houses WILL sell; you just have to be patient. Understanding that this process is essential for the value of real estate is key. This is actually the time when you would pay $330,000, for a million dollar home. Who could argue with that? When the real estate market is crashing, the media outlook is very negative and discouraging for brokers and investors. The focus at this time is on foreclosures and sinking banks. Rarely do you see the upside of the market. Rarely will they show the average family purchasing their first dream home due to the crash of the market. For years, buying a home has been simply something that no all families were able to do. Now that foreclosure is on the rise, many are using their savings to take a chance on life..to finally purchase their dream. When the market is great, it is easy to sell a house. When the market is bad, a person may assume that they simply have nothing to do. Not only is this not true, it is also a subconscious level of panic. There is actually plenty to do! Your goal should be getting your house exposed to as many buyers as possible. Instead of waiting for your house to look perfect, you can actually expose your house as much as possible so that buyers can see the potential that the property has. Remember that you have to be ready to sell when others are ready to buy. The key to surviving in this market is to continue working. You must continue to do your job.
Gold or Gimmick? If you are ever up late at night, you may see many commercials promising to show you how to make millions in real estate without putting any money down. Sound familiar? Just so you know these people are actually making their millions of profit by selling you useless information. It is true that you may not need a excellent credit and a surplus of cash to get started in real estate; but you do need to know what you are doing. You could always start by making quick sales. In order to do this, you must understand the basic
terminology in this endeavor. For starters, you have retailers and dealers. Retailers by properties and sell them for a quick profit. This is definitely high-risk, but when all goes well the reward is worth the risk. Contrary to the late night real estate gimmicks, retailers normally need a substantial cash flow and above average credit ratings. http://blockman12-G.webcopycat.com Dealers are individuals or companies that sell contracts. They are normally in search for bargain properties and sign purchase contracts with their sellers. Dealers then sell these purchase contracts to retailers, making a solid profit in the process. Dealers normally flip contracts for up to $5,000 without ever taking possession of the deed. You may ask how a dealer would then make most of his profits? Well, dealers generally make their profits from double closings. A double closing allows the dealer to earn a higher profit. A double closing begins with the dealer signing a purchase contract with the property owner and the retailer. This way the retailer promises to buy the property from the dealer at a higher price and deposits the amount in escrow. The property owner signs the deed to the dealer, who then signs it to the retailer. The retailer then signs the loan documents, and the process is complete - the property owner is paid his asking price, and the dealer is paid the difference. Note that the dealer came to the table with no money, and her credit was never an issue. In short, there are many ways to start a career in real estate; thus I have named a few above. However, please keep in mind that there are ways to profit from real estate without significant financial investment, however, that is not to say that success comes free and easy. At the very least, you will need to make a substantial investment in yourself. In order to succeed, you must be willing to work hard. Even with a million dollar real estate portfolio, your brain will always be your #1 asset. Be sure to invest in your education on a daily basis, and learn as much as possible about your local market, real estate law, and investment strategies. Short Sales In todays economic crisis many homeowners are finding that the home that was once their dream, has now become a financial burden to carry. Instead of allowing the home to enter foreclosure, homeowners are now doing research in short sales. Just for review purposes, a foreclosure is when after defaulting on payments an estate becomes the absolute property of the lender; and the homeowner could possible be responsible for deficiency judgment. A short sale is the sale of a house for less than what the owner still owes on the mortgage. There are more reasons to avoid foreclosure than just your credit rating. A recent report from Neighbor Works America notes that other factors come into play in neighborhoods affected by foreclosures. These issues include such things as lowered property values; increased incidence of financial scams, youth stress and instability, and increased crime rates. The report notes, "Abandoned homes from the foreclosure crisis have a direct effect on the rise in crime in communities." Thus you must be careful when considering a short sale: 1.Homeowners must at first try very hard to keep their home. The owner may want to consider a loan modification. Short sales and foreclosures are generally costly to lenders, so they will give great effort in helping you keep your home. 2.Contact professionals for help and advice. This would be a good time to contact a real estate attorney and maybe even a short sale guru or professional. Contacting key people will provide you
with comparative market analysis and opinion, help you set a competitive listing price for your home (if needed), ease the process of working with your lender, and negotiate the contract with the buyers. Asking for help is always smart and effective. 3.Get ready to wait! This process could be very long. Prepare to wait for several weeks or even months Finally, a short sale is not the end all solution to your problems. Though there have been recent allowances made by the government under the Mortgage Forgiveness Debt Relief Act and the Debt Cancellation Act, debt forgiven by your lender may be considered income that taxes will have to paid upon. if you are having issues making your mortgage payments, be sure to speak to a licensed real estate professional about your options regarding debt programs and short sales.
Remember Key Factors While Representing a Seller Providing support to a seller can be hard, but you must do whatever it takes to help your seller feel comfortable. It is important to remember that they are undergoing change, making huge decisions, and dealing with a transaction that probably involves a major, if not the most important, investment they own. As an agent be sure to remain calm no matter how high or low the offer starts. Also, go through the buyers offer carefully and note any key issues that need addressing. These steps are the first steps in ensuring a peaceful negotiation for both the buyer and the seller. The worst thing that can happen to a seller is to have the transaction fall apart a few days before closing. By then they are emotionally invested in another property. Theyve already made plans to move. Theyre excited about the future. And then, wham, everything falls apart and everyone ? you and they lose market time, marketing momentum, and a considerable investment of time and money. Require prospective buyers to deposit enough earnest money to secure your clients position. Set the earnest money high enough to make it difficult for the buyer to purchase another home if they walk from the deal once all contingent conditions are satisfied. You may be thinking that this advice conflicts with your objective to achieve a win/win outcome. In fact, it simply requires buyers to uphold their end of the deal or sacrifice their deposit. Remember, you are representing the sellers, and protecting your clients interest is your fiduciary duty. Another area of caution is the financing. Require the buyer to provide proof of loan approval with no conditions. You want proof-positive that the buyer can and will perform within two weeks of acceptance of the offer. Lending institutions are notorious for writing loan approval letters with conditions or weasel clauses that protect both the institution and the buyers. Make it clear on the counter offer that no contingencies or conditions will be acceptable after two weeks.
The prevailing rule in seller protection is to tighten the language every step of the way. Remember at all times that your job is to protect and secure the interests of your client, the seller. The broader the language you allow, the greater the number of interpretable clauses ? familiarly known as weasel clauses make it into the transaction, each one endangering the level of security you can provide your client.
Every Agent Wants To Get Noticed! The key to getting noticed is simply building relationships! Thats right, its as simple as that! If you are an agent who simply does their job and leaves when its over, they you most certainly wont get noticed. However, if you are the type of agent thats there the first day for move in, or simply leaves a gift behind; then you have left a lasting impression that will result in constant referrals. So whats the best way to do this simple key thing? The most effective way to do the above is by quickly stopping by and bringing the client, or prospective client, a small personalized gift that can be left behind to remind them of who you are. The main point is for this gift to be personalized with your contact information. This doesnt necessarily mean you have to purchase the minimum of 300 letter openers (as cool as they are) with your logo painted on them. You can do this much more economically, creatively and with a lot more flexibility by creating your own tags or putting your business card with the gift. So start a campaign!. Use gifts that are small, inexpensive and something you can easily personalize by attaching a tag or business card. Another key point to this style of gift is to add a smart, witty tag line so the client actually remembers what they read. How are you going to focus on gobbling up those expired listings? Search the MLS every morning to grab that listing that expired at 11:59pm last night. Be at their door hours after it has expired and represent them before anyone else gets the opportunity. For expired you want to bring an item thats not too pricy and you dont want to invest too much in someone that might close the door on you. But is definitely something to break the ice when you randomly show up on their doorstep. Something that catches their attention and/or entertains them. Some agents have even gone online and started accounts with retailers who specialize in parties and gifts. No one says you have to treat each buyer or seller uniquely, you just have to show them care and sincerity. Most people are expecting their agent to be all about the sale. They would not ever expect for the agent to leave a little care behind. Remember, that your clients are making a decision that will affect them for a lifetime and they are actually letting you in on the pot. Do the right thing! Treat others as you would like to be treated. Remember that your relationship with the client, creates other relationships that awaits your future! Making Investments in Apartment Buildings . Most investors would rather invest in homes than apartment buildings. However, the problem is that it is somewhat difficult to get positive cash flow houses. One apartment building may provide as much cash flow as twenty little houses. And once you have management in place it may be a lot less work.
When considering apartment buildings, you must remember to buy properties that will have positive cash flow from the start, based on the current income and all of your projected expenses including management. You are an investor, not a manager, and a good income property should pay for management and still produce positive cash flow. It is a good idea to investigate and verify details before making an offer; this will ensure for a honest investment. Start by verifying income. There should be rental agreements signed by tenants, and rental histories showing if there are any problem tenants or late payments. Look for rental deposit documents also, to see amounts and where the deposits are kept. Also ask to see service contracts and agreements. Do they transfer, or are you free to seek better deals? These can include property management agreements, landscaping, snow plowing, pool cleaning service, and cooling system maintenance agreements. Get the last 24 months income and expense statements, and look for anything unusual, like expenses that are too low or income that seems too high. Review the rent roll, and find out if the rents are over or under the market rates for the area. If there are employees, look at the payroll records for any surprises, like accrued vacation time that youll have to pay. For the exterior inspection, you will want to first walk around and take notes. Watch for anything that looks unusual or in need of repair. Then you can get professional inspections, if necessary. You want to verify that the electrical and plumbing systems are up to date and meet current codes. You also want to get an estimate on how many years
Take notes, and list problems, and estimated costs to correct them. You can use these notes during subsequent negotiations. The problems investors run into when buying income properties are usually not unforeseeable. They can be avoided or resolved if you just do your due diligence. Use a checklist so you wont forget anything. Buying apartment building are definitely risky, When making a purchase you have to consider the fact that this will be an ongoing asset and liability.
Marketing Tips Made Easy As most of you already know, marketing is the key to succeeding in this business. We have to market to buy and sell homes. Those who are best at marketing to buy a house, have a lot less work to do when it comes to selling their homes because buying right is 90% of the battle. At the heart of it, marketing is simply about effective communication to get what your want. This is an essential skill not only for running a business, but also for being successful in all aspects of life. Solid communication is essentially the key to the door of success in all aspects of your life. It is agreed that in order to reach as many potential clients as possible, every business being large or small needs to establish a well thought out marketing plan. There are as many ways to market as there are businesses. Just to mention the most general categories, there are Internet/web, radio/TV, print ads (magazines, newspapers, industry journals, etc), and direct mail (postcards,
flyers, etc). There are specific techniques and methods that apply to each of these methods, as well as different tweaks that would be employed for each type of business or product. Still, there are basic concepts behind marketing that always apply, regardless of the company type or marketing method. Perhaps more than ever before, people are distracted and have a short attention span. Use a compelling, involving image to your advantage. If youre creating a marketing piece with text, make sure to sell the reader with your first sentence. The first sentence of anything you write whether that is an email subject line, an opening to a promotional letter or the headline of an online ad is the most important part of the whole piece. After all, if the customer never starts reading, there is zero chance of them reading anything that comes afterwards! When there is a lot of text, its not the readers job to stay interested and keep reading. Its your job to grab their attention and keep it. When in doubt, cut text down! Never make it longer than it needs to be. Dont overload your potential customer or client with extra information. New home builders use this technique everywhere, all the time. There are companies that have formed businesses around this. They go out Friday evening and put signs out all over town for the new home developments that are going up. When you see clusters for about 12 builders all in one spot at an intersection, chances are that one person put up the signs for all 12 of those builders. As an investor on a limited budget, you could put up your own signs on Friday evenings, and then take them up on Sunday. Of if you have the extra money to spend, track down one of the guys who is putting out the signs for the new home builders, and ask them to put your signs out as well. The key to successful marketing is to be honest, personal, and accessible. Clients like agents who follow up! Create a person atmosphere when you are out with them. Try your best to relate to situations without seeming too fake or desperate. Show them that you have their true best interest in mind. http://blockman12-G.webcopycat.com
==== ==== Real Estate Power Investor http://blockman12-G.webcopycat.com ==== ====
Published on Mar 24, 2012
Real estate investing during a faltering economy can be a difficult task, as the value of real estate is decreasing and less and less consum...