| Filed Under: Wholesale Properties Tagged with Asking Price, Credit Check, Hard Money, Hello, Miami Dade, Miami Fl, Money Loan, Nbsp, Pl, Sq Ft |
January 7th, 2011
Hello and Welcome to Xima’s Webinar Training Archive for January 7th, 2011. Here are some of the questions our subscribers asked in today’s training. Please watch the video to see the answer to all these questions and more:
- Q: How are you searching for potential shortsales in the 32837 area code if you can. Orlando.
- Q: WHEN YOU PRINT A CONTRACT CAN YOU CHANGE THE PRICE? MY SYSTEM PRINTS THE ASKING PRICE
- Q: how do we get a spread sheet
- Q: how do i print labels? it’s not working which is to show it as pdf
- Q: how can you tell if a property is under contract?
- Q: i don’t have this contract button either
- Q: I want to mail out to out of state owners. I want the mail piece to go to the owners address, but I want to reference the PROPERTY ADDRESS in the mail piece. How do I get Both addresses into a spread sheet?
- Q: How do I know the amount of price changes that occurred on a listed property?
- Q: How can you search and get only REO properties.
- Q: how do i get owners phone numbers for rentals and sales
- Q: I have some questions about contract builder
| How can i find the mailing or contact information for the property owner |
| Filed Under: ReiFax Trainings Archive Tagged with Area Code, Asking Price, Contract Builder, Google, Hello, Labels, Mail Piece, Phone Numbers, Price Changes, Property Address, Property Owner, Reo Properties, shortsales, Spread Sheet, Subscribers, Webinar |
October 8th, 2010
Hello and Welcome to Xima’s Webinar Training Archive for October 8th, 2010. Here are some of the questions our subscribers asked in today’s training. Please watch the video to see the answer to all these questions and more:
- Q: Why do you always use 50% for the equity feature.
- Q: When you do a big search, like the typical Broward 50% search you just did that neted 305 properties…. if you want personally reduce that number to fit a specific search… how do you do it and then create the labels and SAVE the excel sheet to your desk top?
- Q: I’m sorry, I’m new. If no one is living in the property, who are you mailing to?
- Q: On the new “Discount Report” …when it shows the Average Percentage of Discount - is this the average discount from the Comps, the asking price…..? Thank you.
- Q: are the instructional videos up to date on the new system? where do we find the instructional videos?
- Q: What is the difference with the New Residential and Commercial Versions?
- Q: I like to know if there is a way to customize the information shown in the Comparables Screen?
- Q: Question: What happens when the maps straddles a county line (or more than one county lines?)
- Q: Mobile Homes search is COMMERCIAL ACCOUNT?
| Q: How can i find the mailing or contact information for the property owner |
| Filed Under: ReiFax Trainings Archive Tagged with Asking Price, Commercial Versions, Comps, County Lines, Desk, Excel Sheet, Google, Hello, Labels, Mailing Labels, Maps, Mobile Homes, Property Owner, Subscribers, Webinar |
Sep
13Buy The Most Expensive House In The Neighborhood?
Posted By: Ramon Rivas on September 13, 2010 at 11:01 amThink Long-Term
Assume you fall in love with the masterpiece home in a particular neighborhood. It has everything you could dream of: black bottom pool, marble, an incredible kitchen, top of the line windows, stunning brick work and so on. The sellers obviously put a lot of time, effort and money into the home. Accordingly, it stands out as the pearl on the block. Why wouldn’t you want to snap it up immediately?
Before you start signing documents, take a look at the sales prices of comparable homes, “comps”, in the neighborhood. If you compare the comp prices to the dream home, you should notice a pretty significant price difference. This difference should act as a metaphorical slap in the face or pouring of cold water over your head. The dream home is undoubtedly selling for a price range far beyond the comps. Warning lights should be going off at this point.
You are going to have a problem if you give into temptation and purchase the most expensive home on the block. In fact, you are going to have two problems.
The first problem is the appreciation of the value of the home. The appreciation on the best home in a neighborhood is always going to be dragged down by the structures around it. If you take a $900,000 home from a private community and put it on a block of $250,000 track homes, the $900,000 value is going to come down a lot because the neighborhood will not support it. When you eventually sell, buyers are going to look at the comps in the neighborhood and laugh at a $900,000 asking price.
The second problem is “hemming.” Since you own the most expensive house in the neighborhood, your appreciation potential is already limited. This becomes a bigger problem if you want to remodel or add on to the home. Taking such action would typically add to the value of a home. With the most expensive home, not only will it not add value, it may cut into your equity. Why? If you do a $50,000 remodel, you may see a $10,000 gain for your $50,000 cost. You just lost $40,000.
Dream or Nightmare
Unless you can accurately predict an increase in valuations for an entire neighborhood, you shouldn’t buy the most expensive home on the block. If you do, the dream home could quickly turn into a nightmare.
| Filed Under: Articles Tagged with Adsense, Asking Price, Black Bottom, Brick Work, Buying Real Estate, Cold Water, comparable home prices, Comps, Dream Home, expensive home, Fall In Love, Google, Laugh, Marble, Masterpiece, Neighborhood, Pool, Private Community, Real Estate, Slap Face, Slap In The Face, Temptation, Time Effort, Top Of The Line, Warning Lights |
Sep
10Buy Investment Property Without Seeing It
Posted By: Ramon Rivas on September 10, 2010 at 4:39 pmWhy would you buy investment property without seeing it? It’s a numbers game. Whether or not you see the property before you make an offer isn’t nearly as important as making sure the numbers make sense.
A man in California used to just send out offers on a hundred MLS listings at a time, offering 25% less than the asking price on each one. Occasionally a few sellers would accept his offers. He never had to look at the homes beforehand. Including an “inspection and approval” clause in the offer meant he could always back out of the deal later when he saw the house. Meanwhile, he efficiently found the truly motivated sellers.
This true story demonstrates that with a good clause or two in the contract, you don’t have to worry about making an offer before you see a property. It’s true when you buy investment property or your next home. When it isn’t everything the seller says it is, you can reject the deal with little or no loss. So why wouldn’t you want to look at the property?
Buy Investment Property By Numbers
The main reason you might skip looking at a property before making an offer is time. This is certainly true if the property is far away. If you don’t get a price that makes sense, why spend your time traveling to look at real estate investments? A price and terms that make sense – this is what is important. Of course you’ll probably want to look at the actual property eventually, but looking at the numbers is how you invest.
Investors value income property according to current cash flow (or should if they want safe and viable investments), so start by verifying income. Get the actual income figures for the past 12 months. Always consider the potential income if rents are raised, vending machines are added, etc., but base your offer on the current income.
Verify all expenses with investment properties. If any expenses listed by the seller seem unusually low, they most likely are. Just substitute your own best guess in place of any suspicious numbers.
After you determine the net operating income, apply the appropriate capitalization rate to arrive at the value. If you’re not sure how to do this, get help. However, you really should understand the principle of how to figure a cap rate. This is a numbers game you’re playing.
Calculate loan payments (talk to your banker), and see how much cash flow you’ll have. Then you can figure your cash-on-cash return based on how much of your own money you put into the deal. Just divide the cash flow by your investment.
When the numbers work, you can safely make an offer. Inspections will tell you if there are problems that will affect the cash flow. You can always renegotiate if there are such problems (assuming you made your approval of all inspections a contingency of the offer). Of course, you can even go take a look now that you are truly ready to buy that investment property.
