Real Estate Investing Blog

Not all real estate investment wealth comes from flipping homes - though for those who start to think about real estate investing as a career, flipping homes is something that they see as a great entry into the business. No doubt this has a lot to do with the variety of flipping shows that are on TV these days.

Anyway, a lot of the process of investing in real estate is all about finding great bargains; the wealth - the cash flow - comes from making sales the right way. That’s right: selling properties is a key element of having a successful flip.

Selling properties has a lot to do with the real estate market; you need to know that you will be able to make the sale. It’s also a good idea to have an idea of who your ideal buyer is going to be.

When you have a sense of what the buyers will be like, it’s easier to visual the upgrades that you will need or want to make in order to make the home more appealing. When you are able to visualize the type of buyer who will be interested when you’re selling a property, it’s easier to create curb appeal and an interior blank slate that will catch and hold their attention.

Simply put, in order to sell properties you need to understand what home buyers are looking for (keep in mind, they are looking for different things than you, as an investor, are looking for). When you do, you’ll find that selling (and, in turn, making money) becomes a lot easier.

Whether you are just getting started with investing in real estate or you’ve been buying and selling properties for a while, there’s one thing above all others that can help you out: getting to know your local real estate market.

When you’re going to be buying properties, there are a number of things that you should know. First, let go of the idea that the national real estate market shapes your local market. The only real estate market that you should focus on when you are going to buy properties is the market in your area.

After all, it’s the market in your area that determines the value of available properties. Rental rates and demographic characteristics affect both buyers and sellers within an area; don’t you think that it could benefit you to know more about these things?

For that matter, when you’re looking for information about how to buy properties, remember that not all real estate investments are in private homes: apartment complexes, business developments and other commercial properties can help to ensure your success - especially when you understand your local real estate scene.

When you understand your local real estate market - and the requirements of that market - it’s a lot easier to create wealth by investing in real estate. It’s also a lot easier to sort out great advice about how to buy properties.

When you’re looking for success in real estate investing, one of the key things that you’re going to want to do is make a total commitment to your business. Actually, even before you make a commitment to your business, you need to recognize that real estate investing is a business.

The rest - believe it or not - is a bit easier.

Once you’ve decided that real estate investing success is what you’re after and you’ve gone into business for yourself, you’ll find that the work you’re doing really is all about working from a pattern, following it and improving upon it each and every step of the way.

The process of real estate success begins with finding a great value on a property and selling it for more than what you paid. Ultimately, you’ll find that real estate investing success is simply a matter of buying homes for a price far below their listed value and selling them for what they are worth. Regardless of the economy, regardless of what the housing market looks like, identifying this process and sticking with it is the key to your success.

When you are making investments in real estate, one of the phrases that you’re going to hear over and over (and over) again is that your need to find motivated sellers. You’ve probably heard that enough times that I didn’t need to comment on it, but bear with me for a minute.

When you’re looking for motivated sellers, you’ve probably thought about looking for FSBOs that have been on the market for a while. You’ve probably thought about talking with banks to help you identify those homeowners who could lose their property. But your probably haven’t thought about this: finding those sellers whose listings have been turned down.

There are a number of sellers out there who are taking advantage of flat fee brokerages because they know that with the current market conditions, paying a real estate agent’s commission is going to cost too much. But here’s something that I found interesting:

(source)Many homeowners, he said, are asking him how to save on the seller side, but he has been turning down more homeowners because their homes are unlikely to move at the price they need to recoup their investment.

‘‘We’re not miracle workers,” Gill said. ‘‘The interest is there — we’re getting a steady stream of calls — but I can’t list their house if they can’t sell it. Unfortunately, a lot of folks don’t have the ability to sell their home and there’s nothing I, or any other broker, can do.”

If these sellers who are being turned down by the flat fee brokers are trying to make a short sale or simply to protect their credit even if they sell at a loss, doesn’t it seem as though they would be motivated?

In other words, if there is a flat fee realty service in your area, you just might find that you should be getting in touch with them. They may turn down sellers, but if they know that you’re interested in buying properties they may be able to pass along your card.

When you read about real estate investing, one of the things that is most obvious is that it’s a great way to produce an income. You’ll learn why now is a great time to invest in real estate - about great rates on loans, the fact that home prices are coming down and the fact that there are some areas in which great deals are all but knocking on your door. But one of the things that’s really important is learning about marketing.

Marketing is essential for any business. Investing in real estate is a business; marketing yourself is going to have a huge impact on what you’re able to do.

So how can you market your real estate investing business? First, remember this: you can market your real estate business online quite effectively. In order to market your business online, you’re going to want to look at using press releases. You’re going to want to have a website where people can learn more about you and about what you can offer them. You’re likely to want to start keeping a blog and to learn about pay per click campaigns as well.

You’re also going to want to take advantage of print marketing. Put ads about your business in your local newspaper and in real estate magazines - direct people to your website to find more information. Put up flyers on community message boards. Be sure that you have business cards. These simple steps are not only important for marketing, but they also help sellers know that you are in business.

Professionalism, after all, is a key component to marketing.

When you’re going to be buying multiple properties, one of the first things that you’re going to want to do is to find sellers - but not just any sellers. You will really be looking for those homeowners who are still “thinking about selling,” or those homeowners who are in danger of losing their homes if they don’t put them on the market.

After all, when you’re buying multiple properties, your goal should be to save as much as possible; once a home is listed on the open market, there’s competition, and that increases the amount that you are going to pay.

Therefore, if you’re going to be buying multiple properties, try these options:

• Rather than waiting for sellers to advertise their homes in your local newspaper or FSBO magazines, place an ad in those same places saying that you buy properties and give the homeowner a chance to sell to you before listing the home;
• Take the time to network. The more people who know that you buy homes, the more likely homeowners will be to find out who you are;
• Do neighborhood drive-bys and keep track of homes with for sale by owner signs; after the house has been on the market for an extended period of time, you may be able to negotiate with the seller;
• Be in touch with banks and mortgage brokers in your area so that they are aware that you are interested in buying foreclosure and pre-foreclosure properties.

When you’re able to find the right sellers at the right time, buying multiple properties for investments is far more cost effective/

When buying property is about making an investment rather than purchasing a home, it’s essential to understand the ins and outs or getting the best deal. While some people will tell you that the best way to make money in real estate is to watch for foreclosures, the reality is that there are more advantages to finding pre-foreclosures.

The primary advantage that you’ll discover when you seek out pre-foreclosures is that there is little competition on the market. When you’re able to locate a property owner who has been told that their home will soon be fore-closed upon, you’ve got the opportunity to negotiate with the homeowner; you’ll have the chance to make an offer.

That puts you in control of the process. You won’t be forced to be negotiating the sale at the same time as everyone else who receives the foreclosure list. You won’t find yourself going to auction and bidding for the property. More importantly, you’ll find that negotiating pre-foreclosure allows you to work with the homeowner and to focus on helping him or her to avoid even more damage to their credit.

Most importantly, however, when you seek out pre-foreclosures and take control of the process, you will find that you are able to stay relaxed. With less competition and the chance to get a far better price, you’ll be able to stay calm throughout the process - and that puts you in a position in which everything seems to go more smoothly.

As a real estate investor, one of the things that you will want to be sure that you are doing is following the market news. The more that there is talk of home owners arranging for short sales with the banks, the better the position you will be in to profit.

When banks agree to short sales with those who are about to go into foreclosure, effectively they agree to accept whatever the seller can receive for the home. Simply put, for investors, short sales offer you the chance to make your best offer on a property and, if it’s the best that the seller can get, you win.

If you are looking to see whether or not you can benefit from short sales, you will need to be sure that you are on top of the market in your area. You’ll want to keep an eye out so that the moment a short sale property comes on the market, you can jump.

It’s quick action that makes the difference for investors. Knowing the right time to pounce on a great deal is as essential as being able to quickly secure the financing that you need to close the sale. Of course, it also means paying attention to the right time to turn the property around - but that’s a story for another day.

Wouldn’t it be great if you had a supercharged buying and selling ‘machine’ that brought you in profits every single month.  Can’t you just visualize that JOB fading in to the sunset?

I did and I want to share with you a system for making that a reality.

As most of you know, I am a technology buff – meaning I love employing technology to do as much ‘work’ for me as possible, and then delegating or outsourcing the management of that to a reliable team.

So, I find the best software (or develop it!) and then choose team members that all have their valued positions and play them well – and sometimes I even have 1st string and 2nd string team members. 

It is really the only way to (1) get it all done, but more importantly (2) it is the only way to grow your business.

When I found out that my guest, Larry Goins, for this teleseminar was regularly selling 10-15 houses every single month and never looking at any of them – not even driving to see any of them, I had to get him to tell us how.

Listen to the replay of this teleseminar now – if you want you can even download it to listen in your car.

Best of Success,
Michelle Odessey
michelle@investorwealth.com
770-338-2797 10a-5p M-F

 

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