Real Estate Investing Blog

When you start investing in real estate, chances are good that you’ll find plenty of information about buying homes; learning how to sell properties is a little bit different. Still, for those who are looking to create wealth by investing in real estate are going to want to understand that there are a few things that can help to make a flip more successful - in other words, there are some great tips to follow when you are going to buy and then sell properties.

1. Be sure that you are buying in up and coming areas. When there are going to be major improvements going on in a neighborhood in the not too distant future, you’ll have the best chance to sell high.
2. Don’t start out with the most beautiful house on the block. When you’re selling properties, none of the buyers need to know what it looked like when you bought it.
3. Have a sense of who you will be selling the property to. Choosing the right home is important; knowing who will be buying it is essential too. For example, if you know that you’re gearing up to sell a home to a young couple with kids, make the home kid friendly and ready to meet their needs without them having to do much work.
4. Know which updates you can make that will increase the value the most (in many cases, these are going to be bathroom and kitchen updates). In other words, when you’re flipping properties focus on improvements that will give you the most bang for your buck.

Last but certainly not lease: make and stick with your budget. The money that you make when you flip properties isn’t really going to be coming from the sale exclusively; your profit comes from getting a great deal, sticking to a budget and making the right choices every step along the way.

When it comes to getting started in real estate investing, one of the primary things that you need to think about is what you’re going to do to finance your real estate investments. Some people who are looking at getting started in real estate investing are lucky and they have the money that they need on hand; others are counting on the “no money down” side of real estate investment.

Even when you’re looking at no money down real estate investing, you do need to have financing - and, therefore, it’s essential to know how you are going to have the money tit’s just not to buy properties. For the no money down side of things, well anyone who’s been there will tell you that no money down means none of your money down.

So, how can you finance your investments?

Conventional mortgage financing

When you’re just getting started with real estate investments, you might find that going to the bank and applying for a home loan is your best option. This is particularly true if your first experiment with real estate investing is buying a multi-family property that you intend to live in.

Private investors

One of your goals with real estate investing is to be able to simply have money on hand; the bright side is that there are a number of people out there who already do have the extra money and will be willing to lend some of it to you so that both of you can profit. Private investors are looking for ways to increase their wealth, but they are also looking for ways in which they don’t have to do the work themselves. Private investors can be an extremely valuable asset.

Hard money lenders.

These commercial lenders are there to help investors make great property deals; hard money loans can be for large amounts of money and are based on the value of your investment. If you’re able to build a great relationship with hard money lenders while you’re getting started with real estate investing, you’ll find that there’s someone (or some company) that will be there to support you with the future investments that you make as well.

Knowing where to secure funding for your real estate investments is an essential component of both your long term success and simply to getting started.

When you’re looking at what it’s going to take to succeed in the real estate investment business, it’s important to take a look at those considerations that will help you to make the right property choices. Particularly when you hope to do your research quickly so that you can move on deals before they are snatched out from under you, there are some key points that you’ll want to focus on when you start talking with the seller.

It’s absolutely essential to determine that the seller is motivated, so one of the first questions that you should pose is this: why are you selling the house? The answer that you get will help you to determine how eager the seller is to sell; the more motivated the seller, the surer you can be that you’re getting a great deal.

Of course, the benefit of the deal will also be determined in part by the market value of the property - so it’s important to take into consideration what the property will be able to be sold for. The bigger the difference between the price you pay and the value of the home, the more that you’ll make on the sale.

Still, it’s a good idea to take into consideration whether or not the home is in need of repairs; how much work is going to need to be done on the property before it reaches its peak value? In part, this is where flippers make a lot of their money - knowing how to make essential repairs and to remodel at a bargain.

Those are the three primary considerations that you’re going to want to take a look at before investing in real estate, but just to round things out it’s a good idea to look at two more points. First, how much is still owed on the mortgage and, what’s the lowest offer the seller will accept for the property.

When you are able to look at the answers to all of these questions - and to compare them between one property and the next - it becomes a lot easier to make the right investment choices (and, of course, to succeed in real estate investing).

When you’re getting started in real estate investing and you’re ready to start making a career of it, you’re going to find that there’s some time that you spend online.

Obviously, there’s a lot of great information out there for those who are looking to get started with real estate investing; blogs like this one, mentoring programs like the ones that we offer and articles that you can find about setting up your company, buying and selling properties and about the legal information that you need to be sure that all of your business deals are good deals are essential.

But, perhaps more importantly, when it comes to getting started in real estate investing, you’re going to want to be sure that you are able to take advantage of the web when it comes to:

1. marketing your business
2. finding properties that you should invest in
3. renting out the properties that you’ve purchased
4. selling those homes that you’ve fixed up and are ready to sell for a profit

The internet, ultimately, is a great resource for those who are looking to generate wealth with real estate investing - provided you know the best ways to use and take advantage of it, and the right mentor can ensure that that happens.

The more involved that you become in real estate investment, the more likely that you are to start thinking about buying multiple properties. It’s a good way for some people to expand their businesses, however it’s not going to be right for everyone.

Some people who get involved in real estate investment need to be able to have a sense of diversity in the properties that they own and they need to have multiple projects going on before they feel at all content. Others look at the possibility of buying multiple properties and cringe; they want to make one investment, see it through and then make another.

In other words, when it comes to buying multiple properties one of the things that you’re going to want to pay attention to is your personality. Similarly, you’ll want to consider the size of your real estate investment business, your past successes and the comfort of your investors.

Ultimately, before you get into buying multiple properties you will want to develop a sense of what you’re comfortable with; you’ll want to be sure that you know the ins and outs of investing in real estate. And then you’re going to want to make sure that you are going to be able to get the results that you’re looking for - experience is extremely important, whether you’re learning from your own experiences or you’ve looked into mentoring to get you started with learning from the experiences of others.

Real estate investing is a great way to accumulate wealth. Those who get started with finding real estate investment properties - and learn the best methods up front - quickly find that a part time project can become a full time career.

It takes time to really learn the ins and outs of real estate investment. Beyond due diligence, one of the most essential skills that you can learn while you’re getting started comes down to this: where should you be looking to find real estate investment properties?

Here are 5 great places to look:

1. Look for public auctions, divorce settlements and foreclosures (bank/FHA/VA). In each of these situations, you’ll discover that the price that you pay for a home is likely to be lower than the value of the property.
2. Looking for old listings. Once a property has been on the market for a long while, you’ll find that the sellers are far more motivated to just be done with the process. Often, it becomes possible to negotiate the price down, however, in this case you’ll need to be sure that there isn’t some really good reason why the home hasn’t sold - such as it’s completely unsound structurally.
3. Look for hidden treasure. Now that’s not to say that real estate investing is a lot like pulling out a map and looking for the X that marks the spot of a great deal. What it is to say, however, is that there are abandoned properties that are run down and are a deterrent to home buyers because of the amount of work that it will take to get them fixed up. When you’re able to find these properties and make considerable changes, you’ll find that there are profits to be made.
4. Get to know local attorneys. There are a number of attorneys who handle property sales in special circumstances. If you’re someone who has an in with an estate attorney, for example, you’ll find that you can be the first to find out about a home they are looking to liquidate, and that gives you a chance to save on the purchase prive - and to be aware of an investment property that will become available.
5. Keep an eye on announcements in your local newspaper. Foreclosure notices and other legal notices will appear in your newspaper. These can give you a sense of properties that you might want to look into.

When you know where to look to find real estate investment properties - you’ll find that it’s much easier to learn the art of the deal; and that’s something that, over time, will help to ensure that you see the profits that will fuel your business.

One way that some real estate investors generate wealth is to buy notes. When it comes to buying notes, what you’re really purchasing is the promissory note for the property, not the property itself. Once you own the promissory note, you have a variety of options available to you.

Ultimately, though, if you are going to be buying notes as a part of your real estate investment business, you’re going to want to:

1. Be sure that you are reviewing the actual loan documents so that you can determine the outstanding balance and the payment terms that were set out.
2. Be sure that you know how much interest has been paid thus far.
3. Be sure that you are aware of the next payment due date.
4. Be sure that you know that the loan is insurable.
5. Be sure that you know the current value of the property that you are buying the note for.
6. Be sure that the actual mortgage will be assigned to you.
7. Be sure that the promissory note is endorsed over to your real estate investment business.
8. Be sure that the promissory note is turned over to you.
9. Be sure that all of the details are documented.
10. Be sure that your attorney has looked over all of the paperwork so that you know what you’re getting and that everything - including notifying the homeowner and insurance companies involved of the transaction - has been done properly.

There’s far more to learn and understand about buying notes - the process, the value and what your rights are; if you’re familiar with buying notes, consider the above a reminder.

Marketing is often the one thing that differentiates a successful real estate investor who builds genuine wealth from those who “dabble” in real estate investing.

Ultimately, when your work is real estate investing, you are not in a position that is altogether from that of any other company. You may offer a great service (in this case, saving homeowners from foreclosure), you may offer a great product (as an example, let’s say affordable rental properties), but if no one knows about what you do it’s going to be extremely challenging for you to succeed.

Because marketing is so essential, it’s important to recognize that there are a number of things that you can do to get the word out about your business:

• Take advantage of traditional marketing strategies. Make up business cards, be willing to take out newspaper ads maybe even billboards or TV or radio ads. All of those print marketing tools that are commonly used are going to be valuable to you.
• Network. Make a personal connection. Go to small business networking functions in your area, make personal connections with those at the bank so that you can start building relationships.
• Learn as much as you can about online marketing. You need to understand the value of blogging and what it takes to market a website so that those in your area who are looking for solutions will be able to see what you can do to provide them.

Marketing isn’t a one time effort that you put into your real estate investing business: marketing is an ongoing process. The sooner that you are able to develop a solid marketing plan, the more successful your business is likely to be.

When you’re just getting started with real estate investing - particularly if you already have a home of your own - one of things that you might think you already have figured out is how to buy properties.

Buying properties for real estate investments isn’t exactly the same things as buying a home of your own. When it comes to real estate investments, you’re not just looking for the home of your dreams - not are you just looking for a chance to turn a quick profit; what you are really looking for is a great opportunity.

Because you are really looking for opportunities when you are looking at buying properties for real estate investments, it is important that you aren’t looking for homes that are already listed in the MLS: after all, those sellers already have someone who they believe is working with them to get the full value of the property. Similarly, you might find that buying properties isn’t just a matter of looking through a list of FSBO homes.

When you want to be sure that you’re able to focus on investments, you are going to want to make an effort to keep in touch with banks, attorneys and others who can help you to identify pre-foreclosures and foreclosure properties. You’re going to want to make sure that, when you buy properties, the seller is desperate to sell - that’s going to make the purchase far easier for you.

Down the road, once you’re established yourself as an investor, you’ll find that the things that you learned about how to buy properties early in your real estate investment career really will pay off.

When you are ready to get started in real estate estate investment - when you know that real estate investing is going to be the key to your long term financial success - there are a few things that you are going to need to do. Now obviously, you are going to be looking for properties or land or even investment partners, but even those key elements come later.

1. You need to have set up a company. The process for this will be different from state to state and you’re going to need to be sure that you choose the right format, but before you can get started with a business you need to have a business.
2. You should find an accountant. Real estate taxes can be tricky enough for those who are buying a home of their own. Business taxes are tricky enough for those who run a small business. Unless you are an accountant (and, in some cases, even then) it’s essential to work with someone who knows the rules and the ins and outs.
3. You should choose a lawyer. Now, it’s important to look at the fact that you are going to have contracts, you’re going to negotiate contracts and, there may be complications down the road. Someone who understands the law can be a great asset.
4. You need to have a business bank account. While you will be paying yourself out of this account, it’s important to keep your company money in one place and your personal money in another.
5. Along with an accountant and a business bank account, you’ll want to have an accounting system in place. You need to be sure that you know when payments are coming in, when the bills need to be paid and to have a sense that everything is in order.
6. Get business insurance. One of the things that you’re going to need to keep in mind is that things can happen between the time you negotiate a deal. You need to protect yourself.

By knowing what you’re getting into and by taking steps to ensure that you are on top of the process even before you get started, you’ll have a more solid basis for your real estate investment business.