In terms of the real estate market, it is a buyers market. Those who have the needed financial resources are urged to act now. Whether you want to buy a cheap first home or buy and resell for a profit, now is the time to act. Speaking of acting, be sure to move short sale properties to the top of your list.

Short sales are when a mortgage lender agrees to sell a home for less than the outstanding mortgage due. For buyers, this means many opportunities to make or save money. For example, if a home is valued at $150,000 and the delinquent borrower still owes $75,000, you may be able to buy the home for around $65,000. Not bad considering the home’s fair market value is $150,000! The poor real estate market makes it difficult for these properties to sell at fair market value, thus the acceptance of a short sale.

You now know that short sales are a good value for the money. It is a cheap way to buy a first home and an easy way to turn a profit with real estate flipping. So, what comes next?

Hire a real estate agent to represent you. This step is optional, but recommended for first time buyers. It is always a good idea to have an expert in your corner. When choosing a real estate agent, don’t opt for the first you see. Instead, perform a series of interviews. Your intent is to buy short sale properties, so use a real estate agent who is familiar with them.

Find short sale properties. If you use the services of a professional real estate agent, this step is very easy. Many states allow real estate agents to disclose the status of properties with each other. This means that your agent can call another and ask if they have any short sales available for sale. It really is as easy as that.

If you are not using a realtor, it is still easy to find short sales. They are sold either directly through the mortgage lender or through a real estate agent. Pickup the phone and call all financial lenders in your area. Ask if they have short sale properties available for sale. As for realtor sold homes, use the internet to view MLS websites. Most realtors drop hints about a property’s status. Look for telltale signs, such as “lender must approve,” or “this property is in pre foreclosure.”

Make an offer. Most short sale buyers are unable to see the property before making an offer. Use your best judgment. The good news is that you can submit multiple buy offers if one is denied. So, aim low at first, as you have nothing to lose. If represented by a realtor, heed their advice. If they have experience dealing with short sales, they may know how low a lender is likely to go. To profit from short sales, never pay more than the home’s last appraised value. In fact, pay less. How much less depends on you.

Wait. After submitting a buy offer, you will start to play the waiting game. An offer can come as quick as a few days, but you could wait months. It all depends on the property. If a lender just agreed to a short sale, they may still be comparing foreclosures and short sales to see what yields the most money. If the property is deemed a hot seller, they may be waiting for other offers. If the home has two mortgages, both lenders must approve the buy offer and this can take time.

If your offer is accepted, the next step depends on your finances. If you already secured financing ahead of time or have the needed financial resources on hand, the sale can close in as little as 30 days. During this time, the current home occupants are vacating the property. As soon as this is done and all paperwork is signed, you can either move in or state preparing the home for resale.

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One question that seems to be commonly asked among those who are interested in real estate investment, particularly in flipping properties, is whether or not a real estate inspection is really necessary. The long and short answer to that question is absolutely and I will do my best to explain exactly why this is so.

First of all, a real estate inspection is the act of having a qualified (and in many states, licensed) professional take a look around the property you are considering and informing you of obvious and potential damage or problems with the property. This is not something you want your uncle Bob doing, unless of course, good old uncle Bob has had the training and experience to know what to look for in an inspection and know what those things could mean.

Many who are planning to flip properties enter into the situation (particularly first time flippers) with the attitude that they know there are problems with the property and that is why they are purchasing the property. The problem is that the untrained eyes may miss some problems that should be addressed before moving along to other problems.

For instance, if there were obvious signs of plumbing problems that could result in a leak behind the wall, you wouldn’t want to paint that wall or replace the floors until you had the possible leak checked and either confirmed or denied and repaired if necessary. Otherwise you would likely need to undo the work (wasting both time and money) that had already been done by the time you found out about the leak that a competent inspector would have told you about before you even began working on the property.

Inspections are great before placing the bid on a house because they actually give investors a bargaining chip. For the true (at heart) investor this is a fact that simply cannot be ignored as it directly affects the bottom line price. If the roof needs to be replace you are justified in offering a lower amount. If the electrical system needs to be updated, this is something that should be adjusted or amended in the final offer. These are also things that are easily identified by a qualified and competent property inspector. Any thing that can save time and money is great when investing in property and an inspection can do both.

Another great thing about a good property inspection is that it often sheds light on the amount of money that will be needed in order to get the house in good working (or flappable order). Knowledge is very important in this line of work and can mean the difference between taking on a project (if the repair budget won’t exceed the eventual value of the property) or walking away if the expenses would be too great to turn a decent profit. As an investor you should never take on a property that is pretty much guaranteed to be a failure, it is simply not a wise financial move to make. It doesn’t matter how much the property calls to you on a personal level in the business of investing the bottom line is the only call you should be taking.

More importantly however than any of the things mentioned above, a proper home inspection can inform you of potentially hazardous conditions within the home that the untrained eyes may not take notice of. Some of these things include toxic mold, which can be financially disastrous as well as hazardous to your health; foundation issues, and structural damage that is threatening the integrity of the property. An inspector should also notice the structural integrity of homes that could affect your home if they are weakened or fail all together. While these things seem so simple, it is often the simple things that lead to the greatest disasters. Whether or not you realize it, a good home inspector is one of the best tools you can have in your arsenal when it comes to flipping real estate as an investment venture.

Real estate investment is about finding good deals

Real estate investments are often treated as one the best ways of investing money. However, what you are looking for is not just any real estate investment, but real estate investment that can give you good returns. By real estate investment we mean investing money into property i.e. buying property at a low price and selling it at a higher price so as to make a profit out of it. So the most important part of good real estate investment is to get hold of such properties which can give you good returns.

Now, how can you get these potential profit-making deals?

Your first avenue for finding good deals is the local newspaper (the property newspaper). Just search for properties that are listed directly by the owners who want to avoid paying commission to the real estate brokers. Since the owner is saving on the commission that they would otherwise have to pay to the broker, they would probably be able to offer a lower price to you and be more open to negotiations. You could also place your own ‘wanted’ ad in the local newspapers. On the same lines, you could use internet to search for the real estate investment avenues. In fact, you would be astonished by the number of real estate investment opportunities you are able to locate on the internet. Not only that, searching for real estate investment opportunities (i.e. property for sale) is much easier on internet than anywhere else.

Another good way to hunt for real estate investment opportunities is by using the services of real estate brokers. Some people use real estate agents as their first (and maybe the only) touch point for getting real estate investment opportunities. The real estate agents act as information hub for people looking to buy property. In fact, a lot of sellers find it much more convenient to sell their properties by listing it with real estate agents.

Multiple listings service is another good way to find real estate investment opportunities. Since the multiple listing book is provided only to the real estate agents and not to the general public (unless you are very lucky), all the cream (good real estate investment opportunities) would have already been taken before you get to see the book. The key here is to look for expired listings that didn’t get converted to a deal.
Another good way to get a property, that is a good real estate investment, is to look for foreclosures by banks/ VA/ FHA or to visit public auctions. You can generally get a good deal here. Divorce settlements are another good real estate investment opportunity.

The Best way by far I know to find teh Best Deals is by using the infromation available about properties in distress that have enough equity built in so that you can really profit from them. Click here to find out more information about the tool that gives you this information without having to leave your home.

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