Real Estate Investing Blog

When you’re getting started as a real estate investor, chances are good that you’re going to be working from your home, and that there isn’t going to be a ton of space in your “home office” - which for many people turns out to be the case - to bring anyone else into the business. However, that doesn’t mean that you won’t need some extra help along the way: enter the virtual assistant.

It’s important to remember that when you are getting started in real estate investment there are going to be tasks that you need to delegate - those organizational tasks and researching obligations that need to be done but that you maybe don’t enjoy doing. When you look into hiring a virtual assistant for your real estate investment business, you will find:

• That you are able to delegate tasks without the cost of hiring an employee.
• That you are able to get the help that you need along the way without having to give up your space.
• That you are able to look at things with a different perspective.

For example, you just might find that you are working with a virtual assistant who specializes in providing real estate services. When that’s the case, you’ll find that not only are you able to get help with the tasks that you delegate, but also you’ll be able to get some invaluable advice along the way.

In other words, when you’re working with a virtual assistant, you’ll be working with a professional who knows a bit about marketing and being in business, and who can help you out along the way.

Hi Michelle,
I absolutely admire what you are doing here for the ForeclosureMillionaireClub.com members with an unbelievable amount of patience and I want to use this extraordinary information source in this industry to it’s fullest extent.

I listened to your several sessions and I will continue to do it in any available time, but I also want your information to transfer into a productive activity.  Because I want to start to using <Option Contract for Sale and Purchase> immediately if I will find acceptable deal, However, .. I still have a question.

Q.  At what stage of Short Sale process can the investor, using an Option Contract, assign it to a buyer?

Thank you again for the opportunity to be here in the club.
Josef Schneider.

Josef,
Thank you SO MUCH for your feedback.  When I read emails like this it makes me want to do even more. 

Answers. 
You can do it an any time in the process, BUT, if we stick to our discussion that we had about using Options it would go like this:
1) You have a ready buyer in the wings
  a) You find the deal (the property)
  b) Get the docs completed with the seller: purchase & sale, option, etc.
  c) Negotiate your short sale (if you are doing a short sale)
  d) Set the closing date with the bank.
  e) Set the closing date with your buyer and explain your requirements for when he/she has to have the funds to your closing attorney
  f)  Assign the option on closing day.

OR

2) You have the deal (the property)
  a)  Get the docs completed with the seller: purchase & sale, option, etc
  b) You find your buyer
  c) Negotiate your short sale (if you are doing a short sale)
  d) Set the closing date with the bank.
  e) Set the closing date with your buyer and explain your requirements for when he/she has to have the funds to your closing attorney
  f)  Assign the option on closing day.

OR

3) You can assign the option prior to closing - assigning it to a buyer WHO WILL CLOSE and not leave the Seller hanging. Meaning they will come through.  AND if there is a short sale to be negotiated - that they will do it. 

If this is what you choose to do - you really need to be sure that you don’t assign it to someone who will “flake off”.  Even though they have given you $ for assigning the option to them, be sure about them, because if something, or all of it drops through the cracks - the seller is only going to remember your name.

Hope this helps!
Best,
Michelle
michelle@investorwealth.com
770-338-2797  10a-5p Eastern M-F

When you are investing in real estate as a career rather than investing in real estate to own a home of your own, chances are good that you’ll start looking for information about how to buy properties. Unfortunately, what gets people buzzing when it comes to buying homes may not be as effective for real estate investors who are looking for motivated sellers and who have different goals.

Take for example some online methods of looking for homes - particularly methods of buying properties by searching Google to see what’s available:

(source)There’s a new option to search for real estate: click on “show search options” and select “real estate” from the drop-down. The search results don’t seem to be powered by come from Google Base. Google shows structured information about houses and lets you refine the results by price, number of bedrooms and bathrooms. Even if there aren’t too many advanced features, it’s interesting to see that Google Maps wants to index all the information that could be displayed on a map.

Now, when it comes to buying properties, the you might consider doing some work online - even if it’s a matter of marketing yourself as a real estate investor using a website and blog. You may even take a look at listings to see which are about to expire. But should you only be looking for properties online?

Of course not. When you are a real estate investor, buying properties is a part of your business; a great deal isn’t a deal until it has a great impact on your bottom lines and helps you to reach your goals. That’s why when you’re looking for information about how to buy properties, you will want to get your information from a real estate investment mentor rather than looking at what’s hot for homebuyers.

Real estate investment is a great field for those who are looking to get started with creating wealth and working on their own. Of course, in order to be successful with real estate investing, it’s important to look at more than just the positives; before you get started, it’s important to look at your own situation when you’re getting started.

First, you’re going to want to think about your family. While it’s possible to accumulate wealth with real estate investment, when you’re just getting started, you’ll find that it’s a good idea to look at your family budget and to make sure that you’ll be able to make ends meet while you’re getting your business off the ground.

Similarly, you’re going to need to be sure that you are establishing a budget for the business you’re getting started in as well. In part, this is something that will help you to evaluate deals; you’ll know what your initial price points are and you’ll be able to make adjustments as you go, but still it’s important to be aware.

Finally, you are going to want to be sure that you are looking at your goals. Getting started in real estate investment is just that - a start. You’ll be able to set goals, you’ll want to be sure that you are acting and conducting your business in a way that lets you get closer to achieving those goals.

It’s by looking at - and regularly evaluating - your big picture that you can ensure that you are as successful as possible in your business. After all, moving towards your goals is essential - not just while you’re getting started, but for the entire time you are in business.

When you are investing in real estate as more than just a hobby - when real estate investment is your business - you’ll find that there are a number of steps involved in evaluating deals. Some of these steps are simple and straightforward; others just seem like they should be:

(source)One important thing you should do if you bid at tax auctions is inspect the properties. Especially in Baltimore it is important to make sure there is actually a building there. A case in point, this last weekend my partner and I were out looking at properties. We saw a property in a very nice single family home neighborhood. It was assessed at $100K but the neighborhood is worth double that. It would be a very desirable neighborhood to own or do a rehab in. There is just one problem. It was an empty lot. Clearly the building had just been demolished because we could see fresh grass seed growing.

There was a $900 lien on the property. Without looking at the property it would be easy to bid $50-100K or more.

When you are involved in real estate investing - whether you are buying bank notes, investing in tax liens or purchasing physical properties - it’s important to evaluate the deal before you make it. It is essential that you look at the properties that you are thinking about investing in (or at least have someone else check it out for you) to see whether or not everything is as it appears to be.

The above example is a good one: when you take the time to do your research and look at a property before making an investment, you just might find that you are able to save thousands of dollars in the process.

A mentor is someone who spends time helping to guide you along the right path - someone who is in some way more experienced. Mentoring is the process by which someone who has a bit less experience or no experience works with someone who is willing to share what he or she knows.

When it comes to real estate investing, there is no shortage of things that are waiting to be learned. In many cases, there’s also no shortage of mistakes that can be made - but when you take advantage of a mentoring program, chances are good that you will not be one of those who are new to real estate investments who simply repeat the mistakes that others have made.

With real estate investment mentoring, you can be sure that you are able to get the support that you need along the way without the fear that you are missing out on something important. By focusing on all that is important, by looking beyond the situation that is immediately important to you, you will find that you are in better position to succeed.

When you know that you are in a position to look at the big picture and, when you know that you are considering all of the options that are available to real estate investors, it becomes far easier to understand the role of everyone involved - and that makes it possible for those who are focused on real estate investment to learn more about the process and to be in a better position to succeed.

On Mon, May 12, 2008 at 1:07 PM,
Don R. Long, Member ForeclosureMillionaireClub.com wrote:

I did contact other investors and lawyers to find a lawyer who was updated on all the new laws.
In addition this particular lawyer asked if wanted to get involved with estates before they were listed with realtors..Imagine my response. 

Last week my son was told about an REO on water in Annapolis, Md reduced $100,000. I did not know what to tell what to offer. Do you have any experience with REO\’s and what to offer? Don
_________________________________________

Don, This sounds “interesting”.

First, Your basic principal initially, is to approach an REO the same way you would have had you been working on it before it was an REO - - minus the info on the owner/seller (the bank statements, tax returns, hardship letter, etc. and having to explain and get them to sign a mountain of paperwork.

Second, Have you done your due diligence?
(I)Reduced $100,000 from what?
(a)  Current Market Value
(b) What it was listed for by the owners when they were trying to sell it conventionally? 
(c) The total balance owed by the previous owners, and (i) does that balance include the late fees, attorneys fees and realtor commission?
  Or (ii) just what the balance on the loan was before they took it back.               
        (II)What is the property really worth at this point?
        (III)Is this an attractive offer to and ‘end-user’ or an ‘investor’?
        AND – Most Importantly
        (IV) What would be your ‘exit strategy’? 
In other words – what is your Plan A for getting your profit and then, what is your Plan B?
Knowing exactly what your exit strategy would be is what is important to know - - - otherwise - - - how can you evaluate a deal to be a ‘viable’ and/or ‘profitable’ deal.

Best of Success,
Michelle Odessey
Off: 770-338-2797   10:00am - 5:00pm Eastern Time
Fax: 770-338-9208

Sometimes, it’s easy to make the choice to start a family business. You know that you get along well and you’ve already learned what it takes to connect and work well together. You know that there are some members of the family who are hands on, some who are take charge, some who are fantastic with money, some who are good at networking and that there are advantages to working with those who you know whose skills complement your own.

Real estate investing is one of those opportunities that works well for those who are looking into starting a family business. There are a number of great reasons why:

1. Real estate investing is the type of field where being able to network is essential; if someone else in your family does it well, even if you don’t, you’ll be able to find success.
2. Real estate investing is the sort of field where those who are great with money are going to count on those who are willing to get their hands dirty.
3. Real estate investing is ideal for those who are good at staying on top of dates and appointments, but it’s also great for those who love researching.

Those three reasons aren’t the only things that make real estate investment something that’s a great family business; there are countless other reasons as well. Of course, the best thing that you can do if you are thinking about a family business in real estate investment is to learn more about the field and about what it takes to be successful. The more that you know, the more that you will be able to determine whether or not it’s the right choice for you.

Divorce isn’t something that many people think of as a good thing - for the most part, even when parents stay close to one another and co-parent, there’s always someone who gets hurt. For that matter, when it comes to talking about divorce, in most cases, the only people who ever seem to really benefit from it are the divorce lawyers.

However, what you’re likely to discover after you’ve been involved in real estate investment for a while is that divorce creates opportunities. While you may not feel good about divorce in general, when you’re able to keep an eye on legal notes that include divorce filings, in many cases you will find something that’s beneficial to you as a real estate investor: motivated sellers.

When homeowners file for divorce, there are going to be some cases in which everything is amicable and one party gets the house and the other takes the car and the boat. More often than not, however, when homeowners file for divorce there is going to be a point in time in the not too distant future when they decide to act quickly and to liquidate their shared assets - and that’s when the real estate investors start to benefit.

Keep in mind that the best deals that you will find as a real estate investor happen when the sellers are motivated. If the parties looking into a divorce are focused on splitting everything or they simply need to liquidate the property to cover the expenses associated with the divorce, it’s possible for you to jump in.

One of the most common questions about buying multiple properties is relatively simple: is it a good idea for me to invest in multiple properties?

The reality is that there isn’t one single answer to questions about buying multiple properties. Those who are just getting started in real estate investment, for example, may not benefit from buying multiple properties right away - at least not until they have started getting into a groove - buying properties, after all, is only a part of the real estate investment process, selling homes is also a part of it.

Similarly, those who have only worked through a couple of transactions as a real estate investor may want to think things through before buying multiple properties. Even seasoned investors who rent out the properties that they buy will think twice between buying multiple properties.

The reality is that when you buy multiple properties it’s possible to overextend yourself: it’s important to really have a strong sense of what you’re doing and to evaluate each deal independently if you want to be sure that you succeed.

Of course, if every purchase is a good idea and you’re in a position that makes it possible, then go for it. Just be sure to take a closer look at all of the risks and benefits of buying multiple properties before you act.