Real Estate Investing Blog

When you are investing in real estate, deal evaluation is key. Part of the deal evaluation process, of course, is going to be having the property appraised; however, sometimes you will find that, when it comes to deal evaluation, the appraiser isn’t always going to get it right:

(source)When you invest in real estate, you’ll work with appraisers, often solicit their opinions, and of course, rely on their appraisals for your loan.

But never accept an appraiser’s opinion as the final word. To protect yourself against inaccurate appraisals, you must understand that some loan reps routinely tell their appraisers the value they need to make a deal work. In return, appraisers know that if they fail to give the right figure, the loan rep might select another. In other words, the appraisal might not accurately reflect market value for the investment real estate you want to buy.

Simply put, real estate appraisers may not be able to provide you with everything that you are going to need to know to determine whether or not you are making the right investment. While an appraiser may be able to assign a value to the property, it may not be as accurate as it could be. While an appraiser can give you some information, there are going to be a lot more points that you need to consider more than just that information.

Evaluating deals is about doing your own research; evaluating deals is also about being sure that you are looking at the big picture.

When you are getting started in real estate investing, you are going to want to be sure that you are looking into finding the best possible advice. However, when you are getting started, it can be a little bit difficult to know what advice you should be following and to know what isn’t quite as valuable.

When you are getting started in real estate investing, you will receive advice about a number of things:

1. Becoming a broker or hiring a real estate broker
2. Joining a company or being an individual real estate investor and having your own company
3. Learning more about local laws
4. Marketing your business
5. Associating with real estate companies

When you’re getting started - especially when you tend to hear conflicting information - you will find that it’s essential to have someone who you can turn to - someone who will help you to negotiate the path, someone who will help you to make decisions, decide what is important and to focus on evaluating the deals that are available to you. Simply put, when you’re getting started in real estate investing, the best thing to do is to work with a mentor who you can trust - someone whose advice you will be able to follow who will help you to reach your goals.

When you’re first starting out as a real estate investor, one of the things that you’re going to focus on right away is getting the knowledge that you need to get started. However, no matter how much you know about real estate investing, without deal evaluation you could get yourself into a less than ideal situation.

Deal evaluation isn’t simply a matter of looking at the amount that is still owed on a property, the price that the owner is asking and the value of the home in the market. In order to really evaluate the deal - to evaluate any real estate investment deal - you’re going to want to be sure that you are looking at the big picture.

For example, if you are going to be renting out the property that you buy, you are going to want to be sure that you’re thinking about how long it will take you to find the right tenants as well as the monthly rent amount. Rather than just looking at the price difference between the cost and value, you’re going to want to look at the market and how long homes are staying on it.

Simply put, deal evaluation is about more than just looking at the short term details; you’re going to want to be sure that you’re looking at the big picture.

So you think you’re ready to buy property but you don’t know where to begin. Before jumping in, you may want to make sure all of your financial ducks are lined up just so. The more you present yourself as a financially savvy and independent person beforehand, the more likely you are to seal the deal. So what can we do?

First, take a look at your credit record. Get a copy of your credit and report and clean up any errors. If there are legitimate delinquencies, set up a payment plan and send the credit bureau updates showing the balance was paid.

Second, look at your budget. The more frugally you can live, the better off you’ll be. This isn’t always easy. It may mean cutting out some of the luxuries you’re accustomed to or dealing with your old car for a few more years. But its also good financial training for your upcoming purchase. The more you learn to balance your budget now, in very concise ways, the better off you’ll be in the long run.

Third, set up your team. Make sure you have your team members in place, including:
a good real estate agent, loan officer, tax advisor and a lawyer. These people help expedite and smooth out the purchasing process as well as serve as good overall advisers.

There are many elements to consider but these are some things you can address today. Sometimes, the bigger picture can be overwhelming, but as we all know, small steps make a big difference.

For the first-time home buyer or real estate investor, it’s often best to handle the process in manageable parts, so you’re not totally overwhelmed. Too often we think of purchasing real estate as if it was rocket science, instead of an accessible and occasionally easy way to invest and generate income. Here’s a few tips to keep it simple:

Think small. Most of us have rented at some point, if not for a majority of our adult life. We understand renting and we get landlord/tenant dynamics. Focusing on small, residential properties allows you to get your feet wet and is usually pretty affordable, since the initial capital investments are relatively low. Once you get used to it, after a year or two, you may be ready to move to larger residential properties because of their higher sustained returns.

Think Close By. When you look into property nearby, there’s a certain comfortability and knowledge you have of the area. It’s often much more daunting purchasing in an area you’re not familiar with, creating a less likelihood that you’ll purchase. It’s important to know about the demographics of your area and while you should always study it, even when it’s your home, you know relatively how it’s doing. You know the lay of the land, basically.

These two tips help keep the nervous buyer a little more calm and prepared. Again, it’s not rocket science. It’s a business move waiting right outside your door. Take a look around, ask questions and keep it simple!

It’s hard when you’re getting started out in real estate. There’s a lot of fears to overcome. People are often skeptical and have horror stories to tell. But you have to get your feet wet at some point, right?

Well one good thing to do is to get yourself acquainted with like-minded individuals - people like you who are learning about real estate and can share information. Would you believe this? There’s actually investment clubs you can join. That’s right, you can join a club in your area where you can talk about the market specific to your location.

It’s been often said that when you join with others, its more of an incentive to move forward. Maybe there’s a competitiveness among us or just a checking in, where other members gently keep you motivated.

Whatever the case, it’s good to stay away from the real estate nay sayers and scary story tellers and surround yourselves with people who are at your level. It could be a great place to share information, inspire with success stories and just meet other people. There’s information to be had everywhere, but its never quite as powerful as using your community as a source. People sharing information is a way more personal way to learn and grow.

Since purchasing real estate can be such a fearful process, why not use the assistance of others to move forward and inspire? The nice part is there may be a meeting close to you. Check it out and keep the ball rolling!

Foreclosures are a hot item just about anywhere in the country right now. That’s because a few years ago, when the economy was pumping like Arnold Schwarzenegger in his bodybuilding days, mortgage companies were selling adjustable rate mortgages left and right. People were eating it up. Too bad for them because the mortgage companies won - at least on the short term - and now, well, it seems there is an opportunity for anyone who can recognize it. And that opportunity is in foreclosures.

As the interest rates started to climb after 911, and really really climb in the last couple of years, people’s mortgage interests reach unaffordable levels. I guess they didn’t think of that!

Since their incomes didn’t go up and their mortgages have, not to mention their fuel bills, people just can’t afford the same level of lifestyle any more. They need relief. We call these people motivated sellers.

All you have to do to get in on the foreclosure market is to identify who the motivated sellers are and understand the mortgage process. I can help you with both of those. Subscribe to my newsletter and you’ll learn everything you need to know to cash in on the very lucrative foreclosure market.

When you’re thinking about those options that are available to you for creating a business and generating wealth, chances are good that you’re going to think about investing in real estate. The challenge, of course is that getting started in real estate investing is not always the easiest thing to do; you’re going to need to be sure that you are motivated to get started.

Different people are motivated by different things when it comes to getting started. Some are going to focus on the opportunity to make money. Some are going to be looking into the opportunity to prepare for retirement or to work with their family members or friends. Still others are going to be motivated by the desire to succeed in ways that they hadn’t before.

Whatever it is that motivates you to get started in real estate, make an effort to hold onto it. That motivation is going to be the things that helps you to reach your goals and that keeps you pushing forward even when things get challenging. Whatever your motivation is, it is going to be the thing that drives you toward finding a mentor, getting started and reaching the goals that you’ve set for yourself.

One of the key elements to your success as a real estate investor is knowing how to buy properties. More importantly, you are going to want to be sure that, when you are getting ready to make an investment you’ve done your research and that you are looking at those markets where buying a property (or properties) will help you to reach your investment goals:

(source)Phoenix made “Forbes” magazine’s top 10 list for real estate investment markets. Investors from other states and Canada are snapping up homes in Phoenix, making it ninth on the list.

Valley mortgage lenader Dean Wegner said that’s great news.

“We can use all the foreign buyers that we can get,” said Wegner, adding that a lot of people are saying the Valley’s housing market has hit bottom and is on track for a rebound.

In other words, when you’re looking for more information about how to buy properties, you’re going to find that you are able to look to a variety of sources - your real estate mentor as well as Forbes magazine and other resources - in order to find hot markets and to move toward reaching the goals that you’ve set for.

Ultimately, that is the key to success in real estate investing: knowing not just how to buy properties but also knowing which properties to buy.

Whether you’ve been thinking about getting started in real estate investing because someone suggested to you that, because of the number of foreclosures and other low home princes, it wouldn’t be a bad idea or you’ve been pondering it for years, there are some great deals out there that are just waiting to be had:

Even if you have never invested before, the opportunity to secure your finances for the future is available now.

With a rise in foreclosed homes and declining prices in real estate, it seems as though there has been no better time to buy a house, an apartment building or a piece of property to rent or flip.

While it’s true that getting started in real estate investing does take more than just a market with foreclosures, you’ll find that the rest of the tools that you need are out there - provided you know where to look for those resources. If you’ve been thinking about getting started in real estate investing the time is right - but not just for getting great deals and working toward securing your future: the time is right to find a mentor and to learn about all of those things that are important to your success.