RISMEDIA, June 17, 2008-In an effort to stabilize declining home values in certain neighborhoods, the Bush Administration announced a temporary policy that will extend government-backed mortgage insurance and allow for the immediate sale of vacant foreclosed properties. . . .
. . . The properties, which must purchased by owner-occupants, will no longer be subject to the customary 90-day waiting period.
When you’re ready to start building wealth as a real estate investor, one of the things that you need to be sure that you are aware of is how to buy properties. After all, buying properties - and getting the best possible deals on them - is going to be the foundation of your success as a real estate investor, and it’s going to be a little bit different than buying a home if you were planning to move into it.
The problem that a lot of new investors encounter when they look at how to buy properties is that they are only looking for a great deal; they end up sunk because they haven’t taken the time to see what sort of shape the home that they are buying is in.
When you want to succeed in real estate investment, you need to be sure that you are looking carefully at properties that you are thinking about buying. A great deal on a property simply is not a great deal if, once you’ve bought the property you need to rebuild the foundation, re-wire the electricity or gut the property and start over; even when you are buying fixer-uppers as a part of your real estate investment strategy, you’re going to want to be sure that you’re not stuck making so many repairs that you cannot turn a profit.
Knowing what you need to be on the lookout for - and knowing how to keep an eye on the properties that you’re thinking about buying - is essential. Don’t just look for the obvious repairs; make sure that you are really looking at the properties that you plan to buy. By doing so, you’ll not only buy the right properties up front, but you’ll also help to ensure your success as an investor.
The real estate market is far from static; in fact, you’re likely to discover very quickly that the real estate market is in flux. When the market gets rough though, it’s even more important for investors to know how to buy properties in a rough market.
When you’re looking at how to buy properties while the market is far from ideal, you’re going to want to be sure that you are evaluating deals carefully. You always need to evaluate deals when you’re buying properties for your real estate investment business, however when the market in a given area is not doing as well as it could be, you’ll find that there are two distinct options that are available to you.
The first option is to focus on learning how to buy properties outside of your immediate area. When you buy properties in other areas, you’ll be able to take advantage of the market there rather than the market where you are. Because housing markets vary from town to town (or from one part of the city to the next), you’ll find that it’s possible to make a big difference in your business.
The second option, of course, is to go ahead and buy properties in a rough market with the knowledge that it may take longer to turn a profit. Ultimately, you’ll find that this is a better option for those who are more experienced or who have other income coming in.
When the market is struggling, knowing how to buy properties and to evaluate deals is going to be key; regardless of what you ultimately choose, you’re going to want to be sure - as always - that you are working toward your goals.
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
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.
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.
Are you Doing it Without a Staff or a ‘Trained Assistant’?
Are You Mad! ?
What would it be like to have a ‘REAL’ Real-Estate Assistant?
To run your errands, make your calls, run your marketing campaign, find your deals, sell your houses, and even more.
What would it be like to Have The Time To Raise Private Money, Grow Your Business Through Networking – and Enjoy All The Family And Personal Time You Want.
When you watch the replay of this webinar - you will learn what you need to do to have this in your business.
Part of creating wealth by investing in real estate comes down to one simple thing: knowing how to buy properties. When you’re working with the right mentor, you’ll get a lot of advice about the best ways to buy homes; but if you’re still thinking about getting started, chances are good that you’re looking for the basics. Here are a few of them.
Think like a realtor when you want to be able to buy the right homes.
Real estate agents have marketing down to a science. They are almost always focused on getting the word out about their presence and what they can do to help someone sell a home. When you market your services - and let people know that if they need to sell, you’re there to buy the home - you’ll find that those who are looking for your services start to come to you.
Don’t be afraid to pick up the phone.
In these days of online marketing, online buying and email, it’s really easy to get into the habit of building a website or writing a letter; phone calls are far more personal and give you the chance to make a connection with a would be seller. A phone call also gives you the chance to see for yourself how motivated the seller may be.
Focus on marketing.
When you think that your focus is simply on learning how to buy properties when you want to succeed in real estate investment you’re overlooking something really important: buying houses is your goal, yes, but its your marketing that will get you there. Marketing is about understanding what sellers are looking for - and sending the right message.
Finding the right properties to buy is really about you as much as it’s about finding the right homes and sellers. Buying properties is about understanding where to look and how to let others know what you’re interested in and what you can do to help them meet their needs.
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.
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.
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.
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