Real Estate Investing Tips: 5 Things You Need to Know

August 26, 2010 By admin Leave a Comment

Real Estate Investing Tips: 5 Things You Need to Know

Real Estate Investing is simple, but not necessarily easy!


You see, people can complicate anything! It’s like telling someone how to drive a car. It’s not complicated at all. Just open the door. Sit down. Turn the car on and put it into drive. But, people always make things harder than they need to be… They start asking thinks like “which door should I open… the left or the right?” or “Do I unlock it with a key or click the button” and on and on we go. Twenty minutes later, we’ve still not even been able to get into the car.


I liked that analogy because it applies to real estate. There are really 5 things you need to know – or steps – when it comes to real estate.


Here are your Top 5 Real Estate Investing Tips!


Tip #1: Find a Motivated Seller

Stop wasting your time trying to make deals out of deals that aren’t there. Sellers are motivated to sell a piece of real estate by only 3 things:

Change in personal situation. Sellers become very motivated to sell their properties when things in their personal lives change and they can no longer afford the home or there is an emotional reason for selling. Personal reasons for selling a home are: job loss, divorce, relocation, illness, etc.


Tip #2: Evaluate the Deal

Once you’ve found a motivated seller, it’s time to decide if the deal is going to work. Real estate investing comes down to the numbers. There are 5 factors to consider in order to decide whether or not to invest in a property.


Location. If real estate is located in an area that is full of abandoned properties and rundown houses, the score will be lower than if the house was located in a prime location, close to all of the area amenities.


Condition. The better the condition of the property, the higher the score will be. For instance, a brand new home is going to have a substantially higher score than a property that’s rundown and needs major repairs.


Price. The lower the price, the better! The goal is to purchase real estate for as little as possible. 30% or more below market value will score much higher than when the seller is asking for market value or better.


Financing. Real estate comes down to the numbers. If the seller is willing to give you financing with flexible terms and low interest rates and you don’t have to come out with any of your own money, it’s better than when the seller needs all cash up front.


Seller’s Motivation. On a scale of 1 to 10, how motivated is the seller to sell his/her property? The more urgent their situation is, the higher the motivation score.


Tip #3: Write an Offer

After you’ve done your homework and looked at the numbers, it’s time to put the pen to the paper. But before you write your offer, make sure you have 2 exit strategies in place. This way, you’re not stuck holding onto a piece of real estate that you can’t rent or sell. Many people are losing their shirts in real estate because they jumped in on pre-construction and hoped to “get rich quick”. Consider submitting 3 contracts on the same property with different prices and terms and let the seller decide what works best for his/her situation. For instance, you may have a wholesale offer at 50% of market value, a seller financed alternative that you might use for a rental, and a lease option which you might do a sandwich lease-option.


Tip #4: Line Up Your Financing

Once the seller has agreed to one of your offers, it’s time to get the deal closed. If you’re wholesaling the property, find your investor-buyer. If you’re going to close on it yourself, line up the financing via a conventional lender, hard money lender or line of credit. Also start looking for a tenant or tenant-buyer if you’re goal is to build a long term real estate portfolio. The key is to get your financing lined up in accordance to your exit strategy and begin moving immediately.


Tip #5: Follow Through with Your Plan

Many real estate investors purchase a piece of property with one plan, buy-fix-sell. They write the offer based on a certain sale price and with a specific plan to renovate. Then, once they close on the home, they over-improve and try to sell it for more than it’s worth or use a hard money lender and then decide they want to rent it.


If you follow these steps and remember the tips, then you will make money in real estate. If you deviate from the plan, then your chances of running into problems increase. You wind up with the wrong type of financing, you can’t find tenants, the holding costs eat the profits, etc.


Remember, real estate investing is like driving a car. It’s simple. Get in, turn the key, put it in drive, and go!

Heather Seitz is the co-author of “Guerrilla Marketing for Real Estate”
and founder of the national Real Estate Interview series. She teaches investors
how to find motivated sellers, evaluate deals and renovate properties. Get free
real estate information, tips and training and sign up for her Real Estate Investing Tips at http://www.realestatetrainingacademy.com

www.reinvestingsuccess.com Real Estate Investing Tips – Join the Real Estate Investing Success Series today! Learn to Invest in Real Estate like the pros by joining other real estate investors.

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Know The Answers To Real Estate Investing Faq And Get Success

August 10, 2010 By admin Leave a Comment

Know The Answers To Real Estate Investing Faq And Get Success

Creating a goal plan is half the fun of beginning real estate investing. It’s all about starts at the end, when you are beginning a real estate investing remember to begin with the end in mind, as you start down the path to beginning real estate investing. What kind of lifestyle you would like to have, how much time you want to put in, and where and how you want to live. What you would like your real estate investing activities to provide for you, Spend some time thinking about exactly what you want to accomplish. Don’t think only in financial terms. Be specific, and write down your goals. When you can see them clearly in your imagination, you’re well on your way to achieving them.

In real estate investing goal setting step has fail to notice in short interval, this is very unfortunate because taking a few moments to complete this simple task effectively can have a huge impact on your long term results but also on how seriously you are treated by professionals. A great way to describe creative real estate investing is to describe what it is not, here are examples of what it is and isn’t. Real Estate has classified in five types they are Flipping real estate, Probate real estate investing, Virtual real estate investing, Lease option real estate investing: Part I is Lease option real estate investing and Part II is Flipping real estate. Flipping real estate is one of the most used terms in real estate investing. The term flipping real estate means different things to different people depending upon who you are.

Probate real estate: Motivated seller, an unemotional is one of the great benefits of probate real estate investing. This benefit is usually from out of town, but not familiar with the property and therefore not emotionally attached to it. Virtual real estate investing: There is many an elaborate and systematic plan of action such as virtual real estate investing, it is an ideal virtual real estate investing system would allow you to work and never leave your house. For example leads are automatically generated through automated e-mails, websites and direct mail, which are directed to a prerecorded message and or answering service.

Lease option real estate investing Part One: Now a day investing real techniques are accessible which creates multiple rewards by combining techniques. Lease option real estate investing Part Two :If your are beginning real estate investor making money by doubling cash flows is slam dunk. It gives you what ever you wanted.

The most often asked questions by new or aspiring real estate investors have to do with beginning real estate investing. You would want to read this to learn some specifics associated with real estate investing if you are an avid goal setter, if not a frequent goal setter please read on and consider that setting goals which are really a powerful tool. It does have some magic about it, and is critical to you to become successful in real estate investor.

Bill Ross, a real estate investor and business partner in association with Rob Minton, owns the website http://exclusivewealthsystems.com/ifl. He helps people to create financial freedom by education in real estate investing through the ‘homes buying homes strategy’.

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Flipping Houses And Rehabbing Properties–What You Should Know

July 9, 2010 By admin Leave a Comment

Fix and flip real estate has been very popular in the United States and elsewhere for some time.  House flipping refers to purchasing a home at a greatly reduced price, and then turning around and selling it quickly at profit.  People have made a great deal of money in fix and flip real estate, but many have also lost money at this pursuit, so it pays to understand how to do it to improve your chances of success with fix and flip real estate.

One of the first steps you will want to take is to do some research into potential homes that you can use for house flipping.  Foreclosed homes offer an opportunity for you to purchase a home at a reduced rate.  Many times, these homes are still in good shape, and will need little rehabilitation to get them back up to a point where you can sell them quickly.  Rehabbing properties is the process of making the repairs needed to improve the property value of the house, and making it more attractive to potential buyers.  Another route that many take is to purchase a home that is in need of repair, repair the home and then resell it.  Rehabbing properties in this manner can help to reduce crime in a neighborhood, because vandalism more often occurs to neglected houses, as well as improve property values for not only your property but neighboring ones.  

The goal in flipping houses is to purchase the house at a low cost and then turn around quickly and sell it at a profit.  If you will be looking for financing through a bank, you will want to check on their policy as well as local and state laws concerning the purchase and sale of homes.  Many stipulate that if you purchase a home, you will need to live in it for a certain amount of time before it can be resold, so you will want to look into this before you find yourself in a house flipping situation where you cannot sell the property in a time frame that works best for you.  In fix and flip real estate matters such as these, it is always best to consult with an attorney for legal advice concerning your specific situation.

In order to earn a greater profit at flipping houses, you will want to find inexpensive ways to refurbish the house you have purchased.  There are groups that offer discounted prices for building supplies for those who are flipping houses, and you can find them online.  

It makes sense to learn as much as possible about house flipping before you get started, to prevent a loss of your investment and an increase in profits.

Wayne Hemrick writes about–flipping houses And Rehabbing Properties


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Know What You’re Doing When Flipping Houses

July 5, 2010 By admin Leave a Comment

There’s still money to be made when flipping houses, but if you don’t know what you’re doing – if you charge straight into flipping real estate without educating yourself first – you can wind up with a major liability rather than an asset. Before starting out to flip real estate for profit, you need to do your due diligence first.

What Does “Flipping Houses” Mean?

Although there is a great deal to know about flipping real estate, it is at its core nothing more than the old market practice of buying low and selling at a markup. There are two ways to flip real estate profitably; one is to find run-down properties in need of rehabilitation and repair that you can renovate before turning around to sell. The other is foreclosure flipping; this is when you locate a “distressed property” that has either been repossessed by a bank or mortgage company, or is on the verge of foreclosure – in which case the seller is very motivated and will generally offer you a good deal.

Finding Ideal Properties

The best candidates for flipping houses will be the ones that you can sell quickly will a minimal out-of-pocket investment on your part. One of the best house flipping tips is to visit a local bank or mortgage company that keeps listings of properties on which they have foreclosed. These institutions have to pay for maintenance and property taxes on these properties and are usually willing to offer you a deal.

Another option is a real estate auction. However, if you plan to start flipping real estate this way, avoid the online auctions. The reason is that online auctions are open to virtually anyone in the world, so the competition – and the bidding – can get very heated very quickly and you may not get a good deal in the end.

Another way to spot a decent foreclosure flipping deal is to find a “For Sale By Owner” sign. Although this is not always the case, chances are good that the owner is “motivated” by financial problems and you will be able to get a good price on the property.

Financing the Investment

After you’ve done it successfully a few times, you will have enough ready cash to flip real estate with your own funds. In the beginning however, you’ll need to take out a short-term mortgage, which is likely to have a substantially higher mortgage rate. However, provided you have a ready buyer, this should not be a problem. It is important to have one however, or else you’ll wind up with an albatros around your neck. This is perhaps one of the most important house flipping tips of all if you plan to make flipping houses profitable.

Wayne Hemrick writes about–flipping houses and flipping real estate.


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What do I need to know to start my real estate investing?

June 1, 2010 By admin 4 Comments

I would like to watch some DVD’s on how to start real estate investing.
What to buy, How to buy, Etc…

I need a recomendation for a good DVD.

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