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Add You - Real Estate Investing Tips - 5 Things You Need to Know
Need to Hire a Lawyer, Understand the Fee Options First
Personally as well as for business dealings one needs a lawyer. And, a lawyer must always be selected with great care. And the first thing to do is agree on fees. There are no recommended fee schedules but if a survey is made in your local area you will realize that there is a flexible fee schedule in place. Fees vary depending on the practice and the intricacies of the case on hand. Law means long hours of research and study as well as a lot of time spent filing papers and appearing in court.In general there are four ways in which lawyers compute fees:• By the hour: in this arrangement a lawy
er 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 Personally as well as for business dealings one needs a lawyer. And, a lawyer must always be selected with great care. And the first thing to do is agree on fees. There are no recommended fee schedules but if a survey is made in your local area you will realize that there is a flexible fee schedule in place. Fees vary depending on the practice and the intricacies of the case on hand. Law means long hours of research and study as well as a lot of time spent filing papers and appearing in court.In general there are four ways in which lawyers compute fees:• By the hour: in this arrangement a lawy
3 Reasons to Join a Group
Defining your purpose for joining a group.When you make the decision to join a group, you should make sure that you have a clear understanding of what you would like to gain from the group. If you are there for business only, then you should make sure that you have as much to give others as you expect to get from the group. Business purposes are genuinely straight forward and nothing else will get in the way. If, on the other hand, you are there to develop your social skills and gain good relationships with the other members then you should make time to get to know the members first before you join.
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.Defining your purpose for joining a group.When you make the decision to join a group, you should make sure that you have a clear understanding of what you would like to gain from the group. If you are there for business only, then you should make sure that you have as much to give others as you expect to get from the group. Business purposes are genuinely straight forward and nothing else will get in the way. If, on the other hand, you are there to develop your social skills and gain good relationships with the other members then you should make time to get to know the members first before you join.
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 the 5 Real Estate Investing Tips you need to know!
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.
- Economic conditions.
- Property conditions
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 d
Popcorn and Other Marketing Mistakes In a Changing Economy
Ten years of competitive hell!That was the title on the seminar brochure I received recently. As I survey some of the forces flowing through our economy, and witness the way in which they effect my clients, I have to agree. The Information Age is certainly one of the most turbulent times business people have ever seen.And the force causing the greatest turbulence is rapid, unrelenting change. Consider this. In 1900, the total amount of knowledge that mankind had was doubling about every 500 years. Today, it doubles about every two years. And the pace continues to increase. One futurist predict
state Investing Tips you need to know!Ten years of competitive hell!That was the title on the seminar brochure I received recently. As I survey some of the forces flowing through our economy, and witness the way in which they effect my clients, I have to agree. The Information Age is certainly one of the most turbulent times business people have ever seen.And the force causing the greatest turbulence is rapid, unrelenting change. Consider this. In 1900, the total amount of knowledge that mankind had was doubling about every 500 years. Today, it doubles about every two years. And the pace continues to increase. One futurist predict
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.
- Economic conditions.
- Property conditions
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
Get Urgent Finance By Opting For Instant Loans
You are in urgent need of money while your next salary is still say two weeks away. Being a working class person you do not have any other source of income. In cases like this instant loans provide you ready money just when you need most. You can put instant loans to various usages like works of home improvements, enjoying a holiday trip, making payments for education or wedding bills etc.As the term applies instant loans are approved quickly and the loan is deposited in the bank account of the borrower within 24 hours. The loan gets quickly processed as no credit check is done by the lenders. Instan
d 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.You are in urgent need of money while your next salary is still say two weeks away. Being a working class person you do not have any other source of income. In cases like this instant loans provide you ready money just when you need most. You can put instant loans to various usages like works of home improvements, enjoying a holiday trip, making payments for education or wedding bills etc.As the term applies instant loans are approved quickly and the loan is deposited in the bank account of the borrower within 24 hours. The loan gets quickly processed as no credit check is done by the lenders. Instan
- 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
Paper Shredders and Identity Theft
Don't Let Your Valuable Private Information Become Public! Use a Paper ShredderPaper and information go hand in hand. Unfortunately, paper with information...private information...can go from your hand to someone else's all too easily. It might surprise you to know that going through the trash, either your company's or your personal home trash, is not illegal. Once it is put outside in a trash can or dumpster it is fair game. That's right, it's perfectly legal for someone to go "dumpster diving" and take whatever information they find. Disturbing? You bet. No wonder paper shredders have become
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. Don't Let Your Valuable Private Information Become Public! Use a Paper ShredderPaper and information go hand in hand. Unfortunately, paper with information...private information...can go from your hand to someone else's all too easily. It might surprise you to know that going through the trash, either your company's or your personal home trash, is not illegal. Once it is put outside in a trash can or dumpster it is fair game. That's right, it's perfectly legal for someone to go "dumpster diving" and take whatever information they find. Disturbing? You bet. No wonder paper shredders have become
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
Market Manipulation Only Goes So Far
Three years ago, the Journal of Business published an academic paper about stock market manipulation. Let me challenge you to answer the following question correctly:In the study, what types of people were most likely to be involved in market manipulation? Large shareholders owning 5% or more of the manipulated stock? Brokers? Small speculators? Corporate insiders?After dissecting the data for over hundred cases, the authors found that market makers and underwriters were each involved in about one in ten situations – large shareholders almost one third of the time, insiders in just under h
er 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.Three years ago, the Journal of Business published an academic paper about stock market manipulation. Let me challenge you to answer the following question correctly:In the study, what types of people were most likely to be involved in market manipulation? Large shareholders owning 5% or more of the manipulated stock? Brokers? Small speculators? Corporate insiders?After dissecting the data for over hundred cases, the authors found that market makers and underwriters were each involved in about one in ten situations – large shareholders almost one third of the time, insiders in just under h
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!
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