You really want to find motivated sellers for real estate investing? Put a gun to their heads. That’ll give those sellers a chance to suddenly find their motivation. But, unfortunately, putting a gun to someone’s head is neither legal nor ethical way of doing it. There’s nothing like an assault with a deadly weapons charge to put a damper on your real estate investing.
So, you have to resort to legal, ethical, and moral means to find motivated sellers. Despite a slew of advertisements on the web and in pint, there is no easy answer for succeeding in real estate investing. Expect to put in long hours and hard, migraine-inducing work in order to make a profit. However, this is the best way to learn any skill.
Who Are They?
Just what makes a motivated seller (or buyer) any different from any other real estate seller or buyer? “Motivated seller” is a euphemism for someone who knows more than the average person about real estate investing. It also means they are willing to negotiate in order to sell. They are to be distinguished from the average person who is just curious what he can get on the current market, or who will only sell under strict circumstances.
A motivated seller in real estate investing could mean that they are desperate to sell, but it also means that they could be experts in negotiation, are beginning the foreclosure process or are thinking of removing the property from the listings altogether. Think of motivated sellers as really successful used car salesmen. You will not be able to pull any kind of wool over their eyes.
Why would you want to find a motivated seller when you’re into real estate investing? They are truculent, argumentative and going to give you a hard time. However, they are also the ones who will wind up eventually selling you the property you want and often at your price. They need to get rid of the property that they have.
Finding These Guys And Gals
The best way to find motivated sellers in real estate investing is to not look for them. Then, they show up like buses. What you need to do is concentrate on the property available. First off, is the property worth buying in the first place? Is it within your price range? How much fixing up does it need?
Location, Location, Location
In order to select the property that you are going to work to buy, you need to consider the location it’s in and the real estate market in that particular area. Select the area before you select an individual property to target. Once you’ve hit a target area, then you can get to specifics buy looking at real estate listings and even doing a direct mail campaign for that particular area. By using the right tools, you can also pre-qualify your properties before even sending any marketing out.
If you do a direct mail campaign, make it short and sweet. A regular (and economical postcard) with the necessary information is all people will need to see. And people can will see information on a postcard immediately as opposed to having to open an envelope. People will often not even bother to open an envelope from an unknown or unfamiliar return address, just assuming its junk mail.
When you concentrate on a location and the financial condition of the property itself, and get the word out that you are interested in buying for these properties, then the sellers will come to you like flies to rotting meat.
I told you during this article that location and the financial aspect of the property are key in finding motivated sellers, but you may be asking yourself, how do I find properties with the right financial condition so that I will effectively drive motivated sellers to me? Well, I created a video of a tool I use to accomplish this. Go here to watch the video.
How To Find The Best Real Estate Deals
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home building decline continues because of 2 things. One, it is hard to borrow money right now since we are experiencing a financial crisis. Two, what a lot of people are earning right now is not enough for them to buy a new home.
You might be thinking about if then bank is able to give you a loan? Though this can happen, it is still not a good idea because mortgages have been quite high in the past few years. In fact this is one of the reasons why this country in such a financial mess.
A lot of people borrow money and in the end could not pay the interest. Because of that, there have been massive foreclosures and the government has stepped in to try and solve the problem with a $700 billion bailout plan.
The bailout plan is designed to overpay banks for bad mortgages but will this work? Some analysts say no because the rollercoaster ride seen on Wall Street has nothing to do with the housing prices. In fact some politicians who were not in favor of the bailout plan argue that the government should never have stepped in the first place because this is a free market economy.
Because this was done, you are forcing the American tax payer, the honest and good ones to give their hard earned money to people and companies who made this problem happen in the first place.
What makes matter worse is that banks who happily loaned money to homeowners sold this to companies like Fannie Mae or to buyers of mortgage backed bonds. As a result, the value of most homes is now falling so you will have a hard time making a profit if you decide to sell your home.
The sad reality out of all of this is that this is not expected to stabilize any time soon. The value of most homes will continue to drop for 5 years or even more which bring us back to the conclusion that it is better to rent than to build a home.
To cite one example yearly rents in for homes especially around the coastal areas are 3% less than their actual acquire price. The mortgage rates are much higher so it is really not worth to buy or even build a house.
But this may not be the same in other states since some property values and lots have already fallen into line with what people are actually earning so you should check whether or you can afford to build a house given your location.
We mentioned earlier that the second reason for the decline in home building is that people are not earning enough to buy a home. This is true for new families especially those who have children because it’s hard to do both when you already have children.
So what should people do? The right thing to do as home building decline continues is simply to ride it out and then see what happens in the next 3 to 5 years. Yes that means still renting that place you have been living in for a few more years but look at the bright side, you are not one of hundreds of Americans who are forced to foreclose their homes and no longer have a place to stay.
The US housing market consists of the construction, sale and resale of residential properties all across the country. In the second quarter of this year, reports have shown that there has been a decline in home building as well as the sale and resale because of the collapse in the subprime lending industry last year which was one of the factors that contributed to the current financial crisis.
This means that a lot of people have to foreclose their homes if they can’t pay the amortization. Those who have not yet lost their homes are trying to find a way to keep theirs. Individuals who are well of have to think twice before considering building a home so they don’t fall in the same situation as others are also experiencing.
Companies involved in the construction industry have to layoff some workers rather than keeping them on the payroll because they are just wasting money keeping them around when there is no work to be done.
But it is not as bad as you think. There are advantages when there is a decline in home building. The price of materials and cost of labor are much cheaper so you can do a lot with your hard earned money. Since contractors need projects to survive, you will be able to find one very easily and also get a good price.
When you hire a contractor, you should know that your home will be built at a slower pace. This is not to stiff more money from you but to make sure that it is done right. Surely, you don’t want to stay in your new home and experience some problems less than 6 months after moving in right?
One way to make sure it is done just the way you want it is that the contractor of your choice will be able to hire only the best to work on your home.
The only catch to build your dream home is that you must have money stored somewhere since you will have a hard time lending this money right now from the bank.
If you don’t have that much cash on hand to build a house, another option will be to buy one because there are a lot of foreclosed homes right now and banks would rather sell it than just keep it with them.
Just how bad is the decline in home building? A report released by the US Commerce Department reveals that in August, there was 6.2% decline so that existing built units could be sold. This is their way to restore stability between supply and demand but it is going to take more than that to change the current situation.
Some stronger remedy is needed and maybe the $700 billion bailout plan could be the answer. Will it work? Only time will tell but a lot of people hope that it does so the economy will be in good shape and we can see a construction boom in the foreseeable future.
So what should we do until that happens? Pray and just hope for the best. If things work out like what most analysts predict, we will see a recovery by the 2nd half of 2009 which means thee will be no longer a decline in home building.
May
25Should You Worry When there is A Decline in Home Building
Posted By: Ramon Rivas on May 25, 2010 at 1:38 pmThere is no doubt that there is a decline in home building. This has been reported in the news by the various land developers but should you worry?
If you are looking at the big picture, yes because it has disastrous effects. The country’s GDP or gross domestic product will go down and so will consumer spending. People will be out of work and some businesses may even go bankrupt.
Should construction be your line of work and selling these materials is your business, yes you should also worry because construction firms will not buy the same volume of goods from you since there will not be many people who are willing to buy or build a house right now.
But what if you have a stable job in another industry and think it is time to build your home now? If that is the case, then there is nothing to worry about. If you have the money and want to move to a bigger home, now is the best time to find someone who can help you design, plan and make it come to life.
The reasons for these are simple. A decline in home building has it advantages mainly labor and materials are cheap so you can spend the same amount of money for more things. You won’t have a hard time finding a contractor because they will most likely give you a good deal rather than losing you to someone else which means they don’t have any business.
You should just tell them straight how much is your budget and add an allowance because there may be some unforeseen changes which have to be dealt with later on.
There are two types of unforeseen circumstances in construction. The first is customer generated which means you want something else done. The other is site generated which means there is something on the property that is creating the problem. In the event either of this happens, you have to be ready for it because in construction, everything looks good on paper but things change when people are actually working on it.
If you can’t afford to build a home, you can try to buy one right now because the price of real estate has slumped and this could go even lower. This means you can buy the house of your choice right now because there are a lot of unoccupied homes and people have to move in to them first before construction companies decide to build new ones.
Don’t forget a large number of them that have been foreclosed so there could also be a good bargain over there.
You won’t even consider building a home during a decline in home building or any other time if you did not have excess cash lying around and since that is not a problem, you can now go out there and find a contractor who can do this for you at a reasonable price.
So should you worry when there is a decline in home building? No if you are financially stable but if you are not, then it is time to tighten that belt because if you don’t, you could end up being one of hundreds of people who have lost their homes since last year.
May
14Preventing Credit Card Fraud – Simple Strategies
Posted By: Ramon Rivas on May 14, 2010 at 2:53 amWith the increases in technology, it’s becoming more and more difficult to find ways of preventing credit card fraud. It seems as soon as we come up with one effective method to protect our information, the crooks find a way to get around our safeguards. When you use credit cards you will always have some level of risk, but the good news is that by following some simple strategies you can greatly decrease those risks.
Here are some simple things you can do to prevent fraudulent activity:
1. Make sure you check your credit report at least yearly, and make sure you check all three reports since there can be different information on each one. If you notice something unusual contact the credit bureau immediately.
2. Shred all of your documents, particularly credit card statements and credit card offers you receive in the mail. Also, contact any companies who are sending you card offers in the mail and request that they stop sending them to you.
All it takes is one thief to grab a credit card offer out of your mailbox and activate the card and you can have a very hard time sorting it all out and getting that fraudulent activity off of your credit report.
Also, don’t take your trash out at night. You may find it hard to believe but thieves will actually steal your trash bags and look through them for any type of personal information.
3. Don’t carry a lot of credit cards with you, only carry the ones that you use the most often, or better yet, don’t carry a card with you at all unless you are going to go shopping.
4. Don’t sign your name on your credit card. That really doesn’t offer you any protection since a thief can see how you sign your name and copy it. A better alternative is to sign the back of your card: ‘Request ID’ or something like that, then a cashier has to ask for more identification. It might be a little more time consuming but in the long run this simple step could help save your credit score and your good name.
5. Never give out your credit card number, or any personal information, to anyone on the phone unless you are the one that made the call. There is technology available that allows anyone to program any name or number they want to show up on your caller ID.
Just because your caller ID is showing the name of your local bank, it doesn’t mean it’s your local bank. It could just as easily be a scammer who is using the technology to make their phone number show up as the phone number of your bank. If you’re ever in doubt, play it safe, end the call and call your bank back yourself.
Too many people take fraud too lightly. It seems that just because the bank or credit card company doesn’t hold you responsible for fraudulent debt that people don’t care. Well they should. The bank is not going to pay all those fraudulent charges themselves, even if they don’t charge you for them directly, they are charging you, and all of us, by having increased fees. Preventing credit card fraud is easy to do and will benefit all of us.
