Real estate investing is a business that requires a significant amount of work and commitment to succeed in it. The earning potential in this business is truly big. However, it all depends upon how you manage it and make it work.
For an investor, finding the most phenomenal real estate deal is the key to make a great deal of money in the real estate investing business. That is why as a real estate agent, you should be able to come up with the best marketing strategies so that you will get to attract a lot of investors to make use of your services.
Common Mistakes Of Real Estate Agents
The common mistake of many agents in real estate investing is that they simply do what every other agent does. As an agent, you should be able to set yourself apart from the rest. The business of real estate investing belongs to a very competitive marketplace so if you are more innovative in your marketing strategies and other services, chances are you will be the choice to do business with.
Another mistake that most real estate agents make is that they do not clearly express the benefits that the buyers will get out of transacting business with them. Potential clients want to immediately know the benefits that they will be getting out of this venture. A great deal of real estate marketing nowadays revolves around the promotion of the agent instead of the properties and the benefits that one will get out of using the services of the agent. By making a simple distinction, you will see a great difference in the results that you will get.
Marketing Techniques
Many agents do not consider these options because of the amount that they will be spending for using these marketing techniques, but what they do not really know is that these are effective marketing strategies for most businesses and the real estate investing business is no different.
If you think newspaper ads and the like are not that effective, you might want to consider promoting your properties and deals online. Majority of buyers look out for properties and great deals over the Internet so where else would be the best way to advertise but online. However, when posting properties online keep the photos of your listings and other contents of the post as good as possible. Who would want to buy homes that are cluttered in the first place?
Of course, you have to evaluate the results that you are getting out of these marketing techniques. If you think that you are not getting actual business out of a particular advertising strategy then its time to move on to a more effective one. Above all, see to it that when you employ these marketing techniques, they must focus on the services that you offer and the needs of your prospective clients.
Real Estate Investing Courses
It pays to get educated. A lot of agents who are attending educational courses in real estate investing tend to earn higher amounts of income. By attending these courses, you get to learn more about the business of real estate investing as well as all of the fundamentals in terms of promoting properties and deals to your potential customers. You will be able to improve your skills as an agent and eventually turn out to be a high earner in the field of real estate investing.
Real estate investing as a business is a risk. However, if you dedicate a really good amount of commitment in it coupled with hard work, it would not be a difficult task to close deals and earn high profits in this type of business. The bottom line is that it still depends on how you work things out that makes this venture successful.
Jul
07Pre-Approval Letter – How To Use It To Get Your Dream Home
Posted By: Ramon Rivas on July 7, 2010 at 7:42 amWhen house hunting, many buyers make the mistake of waiting to contact a lender until after they have located their dream home. As a buyer, you will be in a much stronger position with a seller if you are pre-approved.
Pre-Approval Letter
To effectively house hunt, you must know the amount you can borrow from a lender. There is nothing worse than find your dream home, but failing to qualify for the amount you need for a loan. Avoid this by asking your lender to pull your credit information and to let you know what needs to be done to get a pre-approval letter. If you are going to have problems with getting a loan, it is better to know about it as early as possible.
Sometimes buyers resist contacting lenders because it’s not the enjoyable part of home buying and they’re afraid an extra credit check will reduce their credit score. This resistance is penny wise and pound foolish. Buyers who get their loan arrangements lined up at the beginning of the house buying process are really doing themselves a favor.
Much of the country is experiencing a hot, sellers’ market. It is not unusual for a seller to get more than one offer on the same day. If that happens to you, your pre-approved status can give you an edge over the competition. In fact, it can make a seller choose you over another bidder.
Presenting Your Letter to a Seller
When you tell the seller you want to buy their property, give them a copy of your pre-approval letter. They will probably recognize the value of the letter, but don’t depend on this assumption. Make sure the seller realizes the loan is already approved.
As you give the seller the letter, explain to them that you are serious about making the transaction go smoothly and, for that reason, you have already been through most of the loan application process. Point out that the lender has pulled your credit info and you’ve provided copies of W-2s, pay stubs, and all the other things the lender needed to decide that you do qualify for a loan. Tell the seller that the only remaining thing to do is to give the lender a copy of the contract that you and the seller sign, and the property needs to appraise for an appropriate amount.
Taking this approach puts you in a very strong position. The seller knows you are not just wishing; you are capable of buying his property. One of a seller’s worst nightmares is signing a contract with someone, taking his property off the market, wasting time and then finding out that the would-be buyer cannot get a loan. On the other hand, you and your pre-approval letter are dreams come true.
Put on your shining armor and get pre-approved by a lender. Once you have the letter in hand, get out there and find your dream home.
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People work tirelessly to generate interest in a home they are trying to sell. Once they get an offer, however, they often are not sure how to evaluate it.
Evaluating the Offer for Your Home
You have read every book under the sun. You have read more internet articles than you can imagine. You have cleaned up your home, made repairs and put out your marketing. At this point, you feel like you are an expert in the process. Suddenly, you get an offer on the property. Now what?
The first thing to do is relax. Do not make the mistake of rushing to evaluate it. An offer is just that – an offer. It has contingencies and all kinds of little quarks in it. Although you have lived in the home for a lengthy period of time, you need to realize you are now in a business transaction. Once you have caught your breath, it is time to consider the offer.
The first issue is always the offered purchase price. The price will never be what you are asking for in the listing. It will be below the number, perhaps shockingly lower. At this point, you may feel the urge to pick up the phone and give the buyer a piece of your mind. Don’t! This is a business transaction. The buyer is merely throwing out a bit of bait to see if you are going to bite. If you do, they get a great deal. If you do not, they will evaluate any counter offer you make. If you do not counter, they can always submit a higher offer. Remember, this is a business transaction, not an affront to your pride!
A second issue concerns items in the home the buyer may want included in the sell. I have seen brawls break out over a lamp that would make a biker blush. Maybe that lamp is an heirloom that you can’t part with, but it probably is not. Only you can decide how valuable it is and whether it is worth losing the sale, but try to be objective and coherent when making the decision. Yes, it has been a loyal lamp, but really now…
After this, you need to evaluate any additional costs associated with the offer. The buyer may want allowances for painting and so on. It is usually fairly easy to bypass your emotions on this one, but you need to make some basic financial calculations. Take the offered price and subtract all costs for the transactions. One you have the net revenue figure, compare it to the bottom line number you decided on when you first decided to sell. This will tell you if it is an offer you should accept.
Homeowners often get so focused on the selling process, that they are caught off guard when an offer actually rolls in. Stick to your guns on your bottom line and you should be fine.
| Filed Under: Articles Tagged with Affront, Blush, Brawls, Bu, Business Buyer, Business Transaction, buyers, Contingencies, evaluating, Expert, Heirloom, home, homes, house, Houses, Internet Articles, Issue Concerns, Lengthy Period, Marketing, Mistake, offer, People, Period Of Time, price, Pride, Quarks, Real Estate, sell, selling, Sun, Urge |
Do you want to profit from the real estate market? Now, it is a buyers market. Many borrowers are unable to afford their mortgages. This is often due to job loss, poor financial choices, and adjustable rate mortgages. Foreclosures are happening at a record rate. Unfortunately, foreclosure proceedings are not a walk in the park. They are lengthy and costly for mortgage lenders and embarrassing for mortgage borrowers. For that reason, many are now opting for short sales.
If you are new to buying real estate and want to profit from buying and reselling or buy a cheap first home, please continue reading on a for a helpful list of dos and don’ts for foreclosure short sales.
DO know what short sales are. You cannot profit from foreclosure short sales if you are unfamiliar with them. Short sales involve selling a property for less than the outstanding mortgage amount. For example, if a borrower owes $80,000 on the home, the lender may accept around $70,000 or less. In dire circumstances, the home’s original value may not even be considered. So, that $70,000 may buy you a $125,000 home.
DON’T just focus on foreclosures. First-time homebuyers and new investors make the mistake of focusing only on foreclosures. Yes, they are your best chance of getting a great deal. With that said, remember they are not a walk in the park. Foreclosure proceedings take months or even years. At foreclosure auctions, there is a lot of competition, which comes from experts in investing and real estate. Then, you may be left with home occupants who refuse to leave. Short sales eliminate this problem. Mortgage lenders and borrowers reach the decision together.
DO actively search for short sale properties. Unlike foreclosures, information on short sales will not just arrive at your doorstep. Short sale properties are sold either through lenders or professional real estate agents. It is easier to spot a lender sold foreclosure. Lenders are not real estate agents. They are either selling a short sale or a real estate owned (REO) property, either way you can get a good deal. real estate agents may not outright state they are selling a short sale property, but they tend to drop hints. Look for low priced properties or listing with the phrases “lender approval needed,” or “pre foreclosure.”
DON’T fall victim to short sales for underwater homes. As previously stated, short sales involve selling a home for less than the outstanding mortgage due. This should result in a good deal, but not always. Due to depreciating home values, many borrowers are finding themselves underwater. This means they owe more than the home is worth. A typical short sale aims for less than the mortgage. With underwater homes, the selling price may be more than the home’s fair market value.
DO the research first. As previously mentioned, short sales for underwater homes aren’t a steal. In fact, you can lose money. To prevent this from happening, do the research first. In fact, real estate buyers should always research. The home’s last appraised value is public record. Find it. Remember, you want a good deal so make sure you are paying less.
DON’T wait forever. Some lenders drag their feet with short sales. This is often when a third party investor, such as Wall Street, is involved. Some buyers are on record as saying it takes months on end to receive a response to a acquire offer. Don’t wait. This increases your competition, which may drive up the price.
DO push for an answer. So, you made a buy offer on a short sale property, but are still waiting for a lender response two months later. What should you do? Of course, you can give up, but push. Contact the lender directly or the real estate agent in charge of the sale. State you want the property, but are quickly losing interest. Plainly state you want an answer in two weeks or else you will withdraw your acquire offer and look elsewhere. This should do the trick. In fact, a response may come immediately.
In short, foreclosure short sales are good opportunity for first-time homeowners on a budget or first-time investors looking to turn a profit. Regardless of which type of buyer you are, do not discount short sales, but do the research first.
May
01Remodeling Your Bathroom: What to Do If Something Goes Wrong
Posted By: Ramon Rivas on May 1, 2010 at 12:27 amAre you looking to become one of thousands of homeowners who, each year, makes the decision to have their bathrooms remodeled? If so, are you also planning on doing that remodeling yourself? While there are a number of advantages to do it yourself bathroom remodeling, there are also a number of disadvantages. One of those disadvantages is the possibility of something going wrong. No matter how much or how little home improvement experience you have, there is always a chance that something could go wrong with your bathroom remodeling project. The good news is that there is almost always a way to fix it.
When it comes to something going wrong and bathroom remodeling projects, you will find that one of the most common problems is that of an injury. Each year, thousands of Americans injure themselves while remodeling their bathrooms. Many times, the injuries are only minor, but other times they can be quite severe. If you do injury yourself, it is important that you get your injury taken care of, whether you need to quickly bandage up a scrape or seek medical assistance. Even if you would rather stay and finish up your bathroom remodeling project, you are advised to seek medical assistance if you need to. Deep, untreated cuts can not only result in the loss of blood, but they can also result in infections. Getting sick isn’t worth a few extra hours of work.
Although bathroom remodeling injuries are quite common, there is something unexpected that occurs even more often. That is a mistake. A large number of Americans, as previously mentioned, make the decision to do their own bathroom remodeling. While many of these individuals do have some prior home improvement experience, not all do. Even if you have home improvement experience, there is always a chance that you could make a remodeling mistake, but the changes are slimmer with prior experience; therefore, it may be a good idea to sign up for a bathroom remodeling class, before you start working.
Even if you have all of the home improvement experience in the world, there is still a chance that you could make a mistake. Most of the time, you will find that this mistake is not the end of the world. Whether you simply used the wrong paint, spilled a small amount of paint on your new bathroom floor, or accidentally cut a floor tile too small, there is always a solution to your problem. The reason why many simple bathroom remodeling mistakes get so blown out of proportion is because many do not take a second to sit back and think about their mistake. If you do this, it will be easier to come up with a solution to your problem, no matter how large or small that problem or mistake be.
Although there is a good chance that you could return to your bathroom remodeling project after a mistake as been made or even after you sustained an injury, you may not necessarily want to. It is not uncommon for many do it yourself bathroom remodelers to realize, after they already started, that they are in way over their heads. The good news is that you should, almost always, be able to seek professional assistance. Many professional contractors are able to not only start a remodeling project, but they can also finish one that you may have already started. Therefore, if you find yourself in over your head, which is quite common; you may want to call upon one of your local contractors or bathroom remodeling experts.
