Start A Real Estate Company If You’re A Brand New Investor!
Not knowing where and what niche to get into is a very frustrating thing in today's real estate world! Listen in as I go over how to get started, what to focus on and what NOT to focus on!
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Private Lender – Real Estate Investor Credibility Kit To Attract Private Lenders
www.REIClub.com - Attracting Private Money Lenders To Your Real Estate Deals Is Easy If You Have a Professional Credibility Packet to Show Your Private Lender... Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I've got quick video on using credibility packets to attract private lenders for your real estate investments. Biography - Quick Bio of Self - Picture, real estate experience, deals you have done? - Do not spend a lot of time on yourself, no one really cares Property Analysis - Property of Interest: - Property Comps - get them from realtor - MLS - Houses sold in past 90-180 Days - similar in sq.ft and neighborhood/subdivision - Highlight - Address, list price, sq.ft., year built, realtor remarks - Location - Quick description of neighborhood, schools, malls, near highway, etc. - Include graphs if you want to show market trends - Pictures of interior - carpet, kitchen, bedrooms, flooring, appliances (hot water heater) - Pictures of exterior - siding (brick or wood), backyard, fence, roof, external units - List of repairs - itemize cost Profit Analysis - What's in it for the Private Lenders? Break down the numbers - List Price = 0K - After repair value (ARV) = 0K - Repair Costs = K - Taxes/Insurance = K - Closing = K - Unless seller takes closing cost - Total costs = K (deduct from list price) - Starting Cash Offer - K - Return on Investment (ROI) -offering 3 points at closing = 00 - Include ...
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The first big step to becoming a property investor or real estate investor
How many times have your heard someone telling you all about how they plan to get rich from real estate investing? Or how many times have you thought to yourself that you are going to start getting into property investing to create wealth? There are so many of us who are ‘going to' and so few who actually do!
The first step in becoming a property investor is to get active. Do something! The feeling of lack of knowledge, information overload or analysis paralysis means that many people end up never deciding anything which means they never actually get started. Success is kind of like a big ship, hard to get going, but once your going - well, you're off! And of course, once your off, then steering your big ship gets easier too!
So if you are struggling with that first step that will take you over the threshold of doing nothing to taking action then consider doing one of the following. These small steps may start your momentum going and lead you into bigger actions:
Set yourself a property goal - big or small, short term or long term. Ultimately you'll want to make a few of these, but hey, even if you start with one, it's still a start!
Conduct some research - Think about what strategy you want to employ and get online to do some property research.
Learn something- buy a property magazine, a book, listen to a podcast, read some websites. There are many free and inexpensive resources out there. Do a real estate investing course, these can be great!
Make a decision to act.
Call yourself a property investor. This may be the first step to changing you mindset and getting your big ship going!
Maybe your first decision is to call yourself a property investor. See? It wasn't that hard after all!
The Pro’s and Con’s of Foreclosure and Pre-foreclosure Investing Every Smart Investor Should Know
Before you dive into the exciting world of property foreclosure investing, you should probably be aware of the pros and cons of buying a pre-foreclosed or foreclosed home...
Pros
1. Lower price and higher profit
Pre-foreclosures and foreclosures usually always sell for less than their actual market value - sometimes 20 to 50 percent below the market cost. Among other things, this means that if you turn around and sell the property, you should make a sizable profit.
Nowadays, you can use a short sale to negotiate a lower price with the lender. This is an extremely powerful technique for building equity out of thin air.
2. Rehab potential
Many pre-foreclosures and foreclosures need repairs and renovations. If you know how to rehab a home without spending too much money, you may be able to substantially and cost-effectively increase the value of the home.
3. Lower settlement costs
Since you are often dealing with vendors wanting to get rid of the pre-foreclosed or foreclosed property as soon as possible, you can often get them to agree to lower down payments, better financing options, lower closing costs, and reductions on other settlement costs.
4. Access to the property
Most foreclosure homes are vacant, which means you can often get access to a foreclosed property as soon as you buy it.
Either that or the homeowner knows he/she needs to move out in a short amount of time.
5. More attractive financing
If you're buying a foreclosure from a bank, they may offer you attractive financing to make the deal more appealing to you.
So what are the cons to investing in pre-foreclosures and foreclosures?
Cons
1. Hidden liens and liabilities
It's not uncommon for pre-foreclosed and foreclosed homes to carry liens and unpaid taxes. As the new owner, you'll have to pay these. Sometimes a home owner or seller may not reveal these liens and liabilities to you. However, the good news is that you can find this information relatively easily with a title search and, if necessary, some other research.
2. Poor condition
Just as many pre-foreclosures and foreclosures are ripe for rehabbing... you can also expect many of these to be in extremely poor condition. Unless you've budgeted for the required repairs and/or renovations, you may be in for a nasty shock. On the other hand, if you inspect the property or (if buying the property unseen at auction) budget for the worst, such repairs may be well within your budget.
3. Learning curve
Buying pre-foreclosures and foreclosures requires an understanding of the legal foreclosure process. You also need to be familiar with how to locate potential investment properties and, ideally, discover them when they first enter the pre-foreclosure stage of foreclosure proceedings. This can be a hassle for some property investors who prefer the relatively straightforward process involved in buying regular properties. However, once you're familiar with how to buy pre-foreclosures and foreclosures, you may discover that it isn't really all that burdensome at all.
Overall, pre-foreclosures and foreclosures are a great investment... provided you're willing to understand what buying such homes involves, and are prepared for the educated risks. You need the proper education such as with http://www.ForeclosuresUnleashed.net. Most importantly, you need to apply the information that you learn!
Popular Real Estate Investing Strategies for Today’s Investor
While numerous real estate investing strategies are available, not all are profitable or applicable for every investor. To become a successful investor requires careful research to weigh the pros and cons of each strategy.
Popular real estate investing strategies include buying residential and commercial properties; offering owner will carry financing; investing in real estate notes or investment trusts.
Investing in properties requires the ability to obtain financing unless investors can buy houses with cash. Commercial real estate is typically much more expensive than residential homes, so it is common practice for investors to join forces with others to share costs and responsibilities.
The return on investment of real properties depends on how property is used. Some investors buy residential homes for use as rental property. Others buy houses in popular tourist areas and offer homes as vacation rentals.
Vacation properties can yield a higher return on investment than long-term rentals, but require more work and upfront cash. Vacation homes must be fully furnished and investors are responsible for maintaining utilities and cleaning the home after each rental.
Long-term homes for rent do not require as much upkeep as vacation homes, but investors can incur costly legal expenses if tenants cause property damage or default on lease terms.
Most landlords endure the experience of bad tenants at least once, but risks can be minimized by conducting due diligence prior to entering into lease agreements. At minimum, investors should run a credit check, background check, and obtain a list of referrals.
Many investors are now offering investment properties for sale using owner will carry financing options. Thousands of homeowners have been forced out of their home due to foreclosure and cannot qualify for a mortgage loan. Buyers that can qualify for bank loans aren't willing to pay current market value because of the abundance of low-cost foreclosure and bank owned homes for sale.
Offering owner-financing options can be beneficial for everyone involved. Investors can obtain higher prices because buyers who cannot obtain bank financing are more willing to pay market value in exchange for financing. Properties can be placed under contract using lease options or seller carry back trust deeds.
Seller-financed contracts generally last for 1 to 3 years to provide buyers time to rebuild credit. Buyers obtain a bank loan once contracts expire. If buyers do not qualify for bank financing when contracts end, investors can extend terms or lease the property to a new buyer. When buyers default on owner-financed contracts, investors might be entitled to all funds contributed toward the purchase. Default clauses must be included in real estate contacts. It is always best to retain legal counsel to execute owner will carry agreements.
A variety of real estate investing strategies is offered for commercial properties. Investors can purchase retail shops, office buildings, apartment or condominium buildings, industrial parks, or undeveloped land parcels.
Investing in commercial buildings is expensive and requires considerable work. In most cases, a staff is required to maintain buildings, collect rent monies, and attract new tenants.
Investors who prefer not to manage commercial properties may find investing in real estate investment trusts a better option. REIT offers the potential to generate profits and is a good option for diversifying investment portfolios.
Although the market is still in a slump there are opportunities to generate profit from investments. Taking time to calculate the advantages and disadvantages of investment properties can help investors determine which real estate investing strategies are best suited for their short- and long-term goals.
