Real Estate Investing Blog

Knowing when to take advantage of a great property that has come on the market is important when you’re looking to create wealth as a real estate investor, but so is knowing the right time to jump and to make the sale. Of course, in order to know when you should be selling properties, you’re going to need to look at some of the finer points of selling (keep in mind this rule of thumb: when you are looking for success in real estate investment, you want to find motivated sellers not to become a motivated seller).

One of those finer points boils down to something that is essential for your business anyway: in order to have success selling properties, you need to be sure that your marketing methods are top notch.

Unless you are able to effectively market the properties that you are trying to sell, it’s going to be hard for interested or would-be buyers to know that they are available. Unless you know how to market yourself and to work with the right team, selling properties is going to be difficult.

That’s why it is essential to understand all of the marketing options that are available to you. Whether you focus on selling from your website, selling with a real estate agent or on using other internet and print marketing campaigns, when you want to be sure that you know how to sell a propoerty, you need to know how to launch a great marketing campaign.

When you are thinking that as a part of your real estate investment business you want to buy foreclosures, it’s important to know where to look. In other words, you’re going to want to be sure that you are buying foreclosure properties that are located in the right areas - in areas where you will be able to turn around and sell the property for a profit.

This isn’t just my opinion, it’s also something the Forbes magazine has been talking about:

(source)Only today’s bravest buyers would consider homes in cities like Las Vegas and Tampa, where rampant foreclosures are sinking already weak real estate markets.

But in markets in other cities, where there are hints of stabilization, foreclosed properties might be a good investment.

You’ll find such spots in the Sunbelt, home to Charlotte, N.C., Raleigh, N.C., Oklahoma City, San Antonio, and Albuquerque, N.M. These five cities topped our list of Best Places To Buy Foreclosed Homes.

In other words, there are some areas that are far better than others when you are looking into buying foreclosure properties; you don’t want to buy a foreclosure in an area where the home prices continue to fall - but then, that all comes down to doing your homework and evaluating deals. It’s essential, when you’re buying foreclosures or other properties to focus on the big picture and, of course, your bottom line.

If you’re still thinking about whether or not you are going to get started in real estate investing, you might find yourself wondering whether or not you’ve got what it takes. After all, just as there are plenty of places where you can turn to hear the success stories of those who are involved in real estate investing, there are plenty of people who are willing to tell you stories about how they were “duped” when they got started in real estate investing - people who will tell you about how they tried and failed.

If you’re looking at getting started, then chances are good that you are looking at these conflicting stories and wondering which side you would come down on. If you’re wondering whether you would succeed or fail - if you’re wondering if you have what it takes, the reality is that it depends.

Your success when you get started in real estate investing depends on:

• Your commitment
• Your willingness to learn what it takes from someone who has been there
• Your ability to get and stay organized
• The contacts that you make
• The real estate market in your area
• Your knowing how to market yourself and to evaluate the deals that come up

In other words, when you are committed to doing well in real estate investing and you are determined to learn well from someone who has had success in the past, you’re likely to find yourself in a pretty good position. When you stay on top of everything, are organized and have great contacts, it’s all about knowing that you are making the right deals - your research will help and, once you’re more experienced, your gut will help you to know which direction you should be going in.

So, think you have what it takes to get started in real estate investing? If so, maybe it’s time to take the next step and learn more.

Not everyone who makes the choice to build a career as a real estate investor is going to be looking inti buying multi-family properties with the intention of renting those properties out. However, for those whose real estate investing plan includes just that - buying and managing multi-family properties - it’s important to know what you should be thinking about when it comes to choosing your tenants.

First, it’s always important to know the rules about housing opportunity in your area. In almost every area, when you are renting out to tenants in a multi-family property, it will be illegal to discriminate against those who are disabled or those who are members of a different race. However, keep in mind if you only have a third floor apartment for rent and the building does not have an elevator, there may be times in which a person isn’t the best candidate for tenancy.

Similarly, because you will be renting out homes in a multi-family property in order to benefit from rental income, it will be important to do a credit check on incoming tenants. It’s important to make sure, ultimately, that you are choosing those tenants who will be able to meet their financial obligations.

In other words, choosing tenants when you are renting out space in multi-family homes can sometimes require a balancing act: it’s essential that you are aware of the rules and laws in your area, but it’s also essential that you are able to look at the big picture and focus on reaching your financial goals.

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 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.