Archive for June, 2008

When you are looking to get started in real estate investing, chances are good that you are going to be a bit hesitant to just jump right in. Not only is this normal, but, truth be told, it can be a remarkably good idea. However, there are a number of things that you can do to reduce the amount of risk that you are taking (working with a real estate investment mentor is just one of them).

  1. Find a partner for your business. If you are worried that you don’t have the money to get started in real estate investing or you simply want to be sure that you have less to lose, you’ll find that going in with at least one other person might be the solution that you’re looking for.
  2. Flip houses after you have found a buyer. Think about it: if you have a buyer lined up and you know how much that buyer will spend and what he or she is looking for, you’ll find that it’s easier to match properties to the buyer. You’ll be able to make an investment (and a profit) with the knowledge that the property you have found has a buyer.

Now, that’s not to say that these are the only things that you can do to ensure that you are getting started in real estate investing on the right foot. They also are not the only things that you can do in order to minimize the risks that you’re taking as a real estate investor. They just stand to show that there are options available - and to ease your mind a bit when you’re thinking about getting started as a real estate investor.

When you get right down to it, real estate investment is all about the deal. Because of this, it should be clear that evaluating deals is an important part of your success as a real estate investor; however, it doesn’t always seem as though evaluating deals is something that people take as seriously as they should.

While looking for details that are out there and considering others’ opinions about real estate investing, this was something that caught my eye:

Ask your buyers agent to prepare a comparative market analysis of the short sale home you are preparing to make an offer on. Depending on how long the owner has owned the home or how long it has been in default they could owe the lender more money on the mortgage than what the house is worth. This could actually bring the list price up to current market value rather than below it.

When it comes right down to it, the CMA of a property is a vital step - especially when you consider that the market prices are still going down in some areas - of evaluating the deal. Your goal with a short sale, after all, is to purchase the property for less than you will be able to sell it for; if the current owner owes more for the property than its current value, it is going to be extremely difficult for you to get the home at the right price (the price that will let you turn a profit).

Evaluating deals is vital - if it is a step that you try to overlook or skip over, you’re likely to find out the hard way just how important it is.

When you’re looking for information about how to sell properties - particularly when you are looking for information about how to sell properties quickly in a slower real estate market like the one that’s taken hold in many markets - one of the most important things that you can do is to look at what you can do to create competition among the prospective buyers.

When it comes to creating competition, the basic gist is that you are going to want to be sure that you are attracting a great deal of interest to the property and you are going to want to be sure that would be buyers are aware of one another. Thinks about it: when you buy a property at auction, the price usually goes higher; why not apply this to selling properties too?

By creating competition among would be buyers, you are likely to discover that they begin to develop a sense of urgency: if everyone who has an interest in a given property is in the same room at the same time, and everyone knows how many others have expressed interest, you’re sure to find that you receive more offers - offers that you can follow up on in such a way that you can encourage them to up their offer.

When you follow up on all of the offers that you receive, you’ll find that it’s a whole lot easier to sell a property, and to get a solid price for it. In other words, you’ll find that by creating competition, you will be able to sell properties quickly and to see the benefits of getting involved in real estate investing.

When you get right down to it, one of the things that tends to stop some people from getting started with generating wealth as a real estate investor is fear. While they know that there are large amounts of money out there in real estate, they get caught up in their fears - most notably, the fear of losing money.

Getting started in real estate investment takes two things - and both of them will help to reduce the amount of fear that you have to some extent:

  1. Getting started in real estate investing takes the knowledge that there is no business that exists that doesn’t involve some degree of risk.
  2. Getting started in real estate investing is something that can be done without a great degree of risk - provided you take advantage of real estate investment mentoring from someone who has made it work.

When you are able to learn more about real estate investing, getting started is a lot easier. Not only will mentoring help you to gain the confidence that you need to get started, but also you will find that you are in a position to reduce the amount of risk that you are taking so that you can be sure that you are able to set aside both the fear and the risk.

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When you make the choice to get involved with real estate investment as a profession, one of the things that you’re going to discover is that there are a lot more options out there than just single family homes. When you buy multi-family properties, you’ll discover that some of these other options are extremely appealing.

Buying multi-family properties - say, apartment complexes with 5, 10 or 20 units or more - you will find that you are able to have immediate investment income. When you buy multi-family properties, you’ll become the one to whom rent is paid. Simply put, if you’re able to buy a multi-family property for $500,000 - $700,000, you’ll find that your loan payments are going to be at a certain level; chances are good that the amount you will be collecting in rent payments will be enough to repay the loan and put cash in your pocket.

When you’re buying multi-family properties, of course, there are still going to be some opportunities that are far better than others. You’ll still want to be sure that you’re making an effort to evaluate deals, look at your long term goals and your financing and to see whether or not the purchase is going to be beneficial to your business.

However, just as its the case that you’re going to find some great investments in general, there are plenty of rewards to reap when you buy multi-family properties.

When your real estate investment business includes turning over properties - in other words, when you buy homes at a discount and then turn around and sell the properties - you need to be sure that you know how to sell properties.

Here are a few key elements that you’ll want to consider when you’re thinking about selling properties - 7 elements that will help you to sell quickly:

  1. Be sure that the property you want to sell has an online listing. Most people who are looking to buy a home start their searches on the web.
  2. Use multiple photos. When you’re looking for the chance to sell properties, it’s important to make sure that prospective buyers are able to see more than just a single shot of the outside of the home.
  3. Be sure that you stage the properties that you’re looking to sell. It’s difficult for buyers to see themselves in a home that doesn’t look like somewhere that anyone lives.
  4. Have the photos of the property you’re planning to sell taken by a professional. Rather than shooting photos yourself, you’ll find that professionals are able to get those great looking shots in far less time.
  5. MLS listings are going to give the property more exposure - including on the big real estate sites where buyers get started in their search.
  6. Take advantage of local marketing; never underestimate the value of lawn signs and ads indicating where the property for sale is located. You’ll never know when an individual who has always looked at the house will drive by and see that it’s available.

When it comes to how to sell a property, it’s important to keep in mind that when you get everything set up well, you’ll have less changes to make - and that means that the property will spend less time on the market.

When you’re working as a real estate investor - regardless of the types of deals that you’re looking into and the contacts that you have - the marketing that you do is going to have an impact on your success. When you find yourself marketing yourself as a real estate investor and marketing your business on the web, one of the things that you’re going to find is that there can be a fair amount of writing involved.

While you may find that it’s beneficial to hire someone who can create content for your web site - and, in some cases, to write ebooks, articles and even blog posts that you’re going to use to spread the word - you just might find that, with a little bit of effort, you can get the writing done yourself. Part of it, of course, just comes down to focusing on writing a bit differently and understanding your marketing goals.

Rather than trying to make everything perfect with your first draft, allow yourself to do some free writing when you are marketing your real estate business. Set a timer, and write out your draft, making sure that you’re including all of the key details; you can go back over it after to fix spelling ad grammar errors and to include the keywords and key phrases that you want to use in your marketing campaign. You’ll also find that you can focus more on the writing when you’ve already done your research (and closed out other distractions).

Your writing is going to have a great deal to do with your real estate investment marketing campaigns, but keep in mind that your real focus is on finding motivated sellers, on finding great properties, interested buyers or prospective tenants. In order to get more out of your writing and your marketing materials, you’ll want to be sure that you are addressing their needs.

Ultimately, whatever your real estate investment goals are, you’re going to find that two things are true. First, you need to be sure that you’re working with the right people and getting the right deals; second, you’ll find that marketing your business effectively will help you to attract the deals that will help you to reach your business goals.

When you’re looking into getting into the business of real estate investing, one of the things that you’re going to want to be sure of is that you’re looking at all of the possible ways to ensure your success. Mentoring is going to put you in a position in which you can learn a lot about the process of making investments, evaluating deals and in which you can learn from mistakes that others have made along the way so that you can avoid making them yourself.

Mentoring is something that can be beneficial to your business on a number of different levels. With mentoring, you will find that:

  • You are able to learn the ropes from someone who has been there and who has a focus similar to your own. If you’re planning to invest in pre-foreclosures, you will find that your mentoring should come from someone who has done the same rather than, say, someone who has only investing in commercial properties or land.
  • You are able to learn a great deal about what it takes to market your business and to network.
  • You are able to take advantage of the experience another real estate investor has; you’ll be able to ask questions, get answers and to know that you’re in a position to learn by doing.
  • You are able to ask for guidance when you need it.
  • You are able to get the tools that you need to take your business to next level - even when you’re just getting started.

Mentoring is something that can help you to know that you are getting your real estate investment business started on the right foot.

When you’re getting started in real estate investing, one of the things that you’re going to discover quickly is that there’s no one way to get started and to launch your career as a real estate investor. Therefore, it only makes sense that when the time comes to get started as a real estate investor, you make it a point to choose your focus.

You may choose to get started by:

  • Learning more about foreclosures and REOs
  • Buying single family homes
  • Buying properties that can be used as vacation rentals
  • Looking into multifamily properties or even commercial properties
  • Focusing on buying notes
  • Investing in real estate trusts

Simply put, there are far too many areas within real estate investing to just dive right in and try to make it work. When you’re looking at getting started in real estate investing, it’s important to take the time to look at all of your options, to explore the possibilities that are available to you and to make an effort to get the guidance that you need in order to ensure your success.

There are two types of real estate investors. First, there are the investors who just jump right in, believe that they’ve heard everything there is to know and who aren’t always careful to be sure that they are making the right choices. And then there are the real estate investors who are successful.

Deal evaluation is the key to your success as a real estate investor. When you make an effort to evaluate the deal before you jump in, you’ll find that there are a number of benefits:

  1. Deal evaluation lets you look at your options and to decide whether or not the investment that you’re thinking about making is a financially sound choice.
  2. Deal evaluation puts you in a position in which you can explore your options and test different scenarios when a purchase doesn’t look as good as it could.
  3. Deal evaluation gives you the chance to focus on eliminating risk and reducing the amount of stress that you’ll have as an investor (which also helps you to look at deals more objectively and to move on when the time is right).

Simply put, by taking the time for deal evaluation, you can be sure that you are putting yourself in a position in which things make more sense, everything is organized and you know whether or not you’re making those choices that will help you to grow your business and generate wealth as a real estate investor.