How To Buy Properties

Oct 24 2008

How to Buy Properties, Or, What Not to Do

Posted by: reipro, in How To Buy Properties

In order to be successful as a real estate investor, you have to know how to buy properties. Learning how to buy properties is something that involves knowing the right research to do and where to do it; buying the right properties involves evaluating each and every potential deal before making a decision about whether or not to push forward and actually buy the property and, it also means learning a bit about how to sell.

Similarly, when you want to learn how to buy properties as a real estate investor, you are going to want to be sure that you taking into consideration those things that you really should not do. One thing that you’re going to think about is what you can do to find properties differently - instead of assuming that the only way to find a great deal is to look at foreclosure lists.

Another thing that you should avoid? Real estate investor field trips in which investors come together and are driven around to see the sites (you can read about one such trip here. Simply put, learning how to buy properties shouldn’t be about going out with your competition; you want to come in ahead of the game.

Buying properties is a solid foundation for growing your real estate investment business: shouldn’t you be sure that you learn the best ways of doing it?

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Oct 17 2008

How to Buy Properties: Thinking to the Future

Posted by: reipro, in How To Buy Properties

One of the things that you’re going to want to think about - especially when you are just getting started as a real estate investor - is the real estate market because the market conditions are going to affect the way that you buy properties. In other words, when you want to know how to buy properties, you’re going to need to think about the market in your area, the way that homes are selling and the direction that prices are heading in; all of these factors are going to help you to look at the big picture and to think about what you’ll do with a property once you’ve made the purchase.

While there’s a lot of advice out there for new investors, a lot of it geared towards how to buy properties, it isn’t often that I come across advice that’s more or less on target:

(source)Today’s falling prices and the huge inventory of unsold property means that potential bargains are plentiful. Smart Investor’s will take advantage of the current market and lock themselves into a good deal now, and hold the property until stability returns. Prospective investors should be warned that the crash we are experiencing will not turn around anytime soon. Prices will continue to fall, though not as dramatically as we have seen in the recent past. As prices firm and inventory is sold, the patient investor will see gains, but they should plan on waiting five years to ring the register.

In other words, the advice about how to buy properties above is focused on helping those who are looking at their profits and telling them they are going to have to wait a while to see the gains that are possible - and, again, to some extent it makes sense. However, when you’re thinking about your own future as a real estate investor, it’s a good idea to take market conditions into consideration; it’s just not a good idea to take this advice as one size fits all.

When you know how to evaluate deals as a part of buying properties, what you will find is that while there are distinct guidelines and specific situations - both of which contribute to helping you reach your long term goals.

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Oct 15 2008

How to Buy Properties as a Real Estate Investor

Posted by: reipro, in How To Buy Properties

When you are getting your business set up and establishing yourself as a real estate investor, one of the things that you are going to want to be sure that you understand is the process of buying properties.

So just how do you buy properties as a real estate investor?

Know what you are looking for. Whether your plan is to buy single family properties or you’ve been thinking about buying multi-family properties or you are thinking about investing in commercial buildings, you need to know what you are looking for.
Know what it takes to evaluate deals. No matter what your situation is, whether you’ve been in business for a while or you’re jist getting started, you need to be sure that you are exploring your options and choosing only the best deals.
Know how to secure funding. You aren’t just going to want to look at heading to the bank for financing; work with a mentor, know who you are going to have invest in your business, and focus on getting the money you need to make great deals.

Is it really as easy as one, two, three when you are looking at how to buy property? More or less - at least when you have the right tools and information.

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Jul 28 2008

3 Ways to Prepare for your First Purchase

Posted by: reipro, in How To Buy Properties, General

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.

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Jul 23 2008

How to Buy Properties: Know Where to Look

Posted by: reipro, in How To Buy Properties

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.

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Jun 17 2008

FHA Extends Financing for Immediate Purchase of Foreclosed Homes

Posted by: Michelle Odessey, in Foreclosures, How To Buy Properties, How To Sell Properties

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.

Read the Full Story Here

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Jun 12 2008

How to Buy Properties: Knowing What to Be Aware of

Posted by: reipro, in How To Buy Properties

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.

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Jun 06 2008

How to Buy Properties in a Rough Market

Posted by: reipro, in How To Buy Properties

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.

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May 16 2008

Assigning Options - When do you do it?

Posted by: Michelle Odessey, in Options, Simultaneous Closings, Mentoring, Wholesaling Real Estate, How To Sell Properties, How To Buy Properties, Short Sales

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.

Hope this helps!
Best,
Michelle
michelle@investorwealth.com
770-338-2797 10a-5p Eastern M-F

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May 15 2008

How to Buy Properties: What Works for Buyers Might Not Work for Investors

Posted by: reipro, in How To Buy Properties

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.

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Real Estate Investing Blog

Archive for the 'How To Buy Properties' Category

How to Buy Properties, Or, What Not to Do

How to Buy Properties: Thinking to the Future

How to Buy Properties as a Real Estate Investor

3 Ways to Prepare for your First Purchase

How to Buy Properties: Know Where to Look

FHA Extends Financing for Immediate Purchase of Foreclosed Homes

How to Buy Properties: Knowing What to Be Aware of

How to Buy Properties in a Rough Market

Assigning Options - When do you do it?

How to Buy Properties: What Works for Buyers Might Not Work for Investors

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