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Jul

03

Finding Buyers When House Flipping

Posted By: Ramon Rivas on July 3, 2010 at 12:02 pm

If you are flipping a property, you need to find buyers fast in order to make money. You can find buyers quickly by meeting investors and other potential customers at local business events and auctions and by building online mailing lists that you can send to potential buyers.

House flipping is attractive because it allows you to start making money right away. You don’t have to rent out the property, take care of taxes and management costs for months or years, and you don’t have to wait around waiting for buyers. The idea behind flipping is that you buy distressed property, turn it around, and sell it quickly to someone as soon as the renovations are done. The trick, of course, is to find buyers who are willing to buy quickly. If you’re planning on flipping a house but cannot find a buyer quickly, the delay in selling will mean lost profits.

To sell your investment home quickly:

1) Visit auctions to meet other investors. Local foreclosure auctions are not only a great way to find your next investment property for refurbishing and reselling, but they’re also a great place to pass out your business cards to other investors. Collect the business cards of other investors at the auction in order to build an investor list that you can contact whenever you have a property to sell. This is especially important if you plan on house flipping fairly regularly.

2) Build an e-mail list. Once you have a number of business cards and e-mails of other investors, develop a mailing list and an e-mail list. This way, you can contact investors quickly whenever you are about to sell property. However, keep in mind that you cannot simply send unsolicited information to other people. Have investors sign up for your mail newsletter or your e-mail newsletter, and this way you can send information about your latest home in the latest issue of your newsletter. Use a double opt-in list for e-mail newsletters and e-mail discussion groups, especially, because anti-spam laws can be fairly strict. Also, be careful not to abuse your e-mail list or mailing list. If you send investors a lot of information that they are not interested in, they’ll not only opt out of the mailing lists and e-mail lists, but they will become annoyed and less likely to look carefully over your property opportunities. You may wish to divide your mailing lists into a few groups. For example, send your higher-end properties to those investors interested in higher-end homes, and send rental units to those investors interested in commercial properties. This way, each investor will get the information that they’re actually interested in using.

3) Join business groups in your area. Any meetings, events, or luncheons held by business groups in your area are a great networking opportunity that lets you meet potential investors and investors in your area. Plus, you will be meeting people who are not investors but are still interested in business. These people may still be interested in contacting you when they have a property that they need to sell quickly or hear of a property that is going up for sale. Just about anyone can refer business to you and can refer customers to you, so make friends with lots of business owners in your area.

4) Go online. The Internet has lots of discussion groups, message boards, and forums where you can meet other investors who might be interested in buying your properties. These are great resources if you are house flipping, since you can receive and send information fast.

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Jun

23

Essential 101 Starter Guide to Real Estate Investment !!

Posted By: Ramon Rivas on June 23, 2010 at 2:08 pm

If you have been working for some time, you probably have accumulated some form of savings, and the first mistake we dont want to make is to let the money stay idle.

There are many ways to work your money hard, and one highly recommended approach is through

Real Estate Investment.

TOP 4 Reasons to choose Real

Estate Investment?
————————————————-
1) Good choice of property can appreciate in value over a shorter period of time, hence
providing good profits when rented out or re-sold.
2) Real Estate plays a critical role in advancing towards financial freedom, through the
passive and recurring income through rentals for example.
3) Real Estate has less volatility as compared to stocks and shares, hence lower risk.
4) Simple methodologies involved, i.e: Finding the right property, Funding that property,
and Farming that property (making profits)

How to find the right property !!
——————————

Given the thousands of properties available in the market, we want to choose the right
property, so that the value can go up, and it can be easily rented out and resold when
desired at a good price.

Hence, to choose the right properties, we consider the following critical factors.

Real Estate Factors (1) – Location, location, location !!
———————————————————-

Location is also the key factor in looking out for a suitable property. Ideally, it should
be near common amenities and facilities such as schools, markets, bus and train
interchanges, shopping centres, and parks. If you can find a location with all these plus
factors, you are in luck, because such places tend to grow in value fast, and hence proved
profitable for you in no time.

Nonetheless, it is all up to personal decisions. You may desire a place which is quieter and
away from the urban chaos, but that could compromise on some of the accessibility and
conveniences which could in turn have an impact on your property future value.

Real Estate Factors (2) – Size and Amenities
———————————————————-

A common phrase “Size does matters” and that is especially so in real estate, which is the
first impression when a potential tenant or buyer steps into your house. Besides considering
space for the living rooms, and bedrooms, extra spaces like garages, basements,
outbuildings, car spaces, and swimming pools are often a plus point during property
valuation.

Real Estate Factors (3) – Age of the property
———————————————————-

Age of the property is important in determining its value. Older houses have much different styles from modern houses, and this can be both a pro and a con.

Pro in the sense that if your house preserves some nice traditional architectural designs,
and that is highly loved by the prospective client, you could take the opportunity to
increase the selling price, hence making better profits.

Cons in the sense that if the client prefers houses with more contemporary designs, this
could have a dire impact on your older property given that it is harder to sell or rent,
ending up in price wars which is lose-lose situation for you.

Real Estate Factors (4) – Price of the property
———————————————————-
Price is definitely in the consideration, hence it is essential to do a market research in
the neighborhood for similar properties you are looking for before jumping to a decision.

Also, if you intend to take on financing, you should check out the different bank interest,
and other money issues that can occur, so that you wouldn’t be caught in a surprise when
doing the final purchase decision.

Real Estate Factors (5) – Condition of the property
———————————————————-

Arguably one of the most important attributes to look out for in a property. You may have
found the best location, the biggest size at the most bargain price, but if the
condition is inhabitable, what does it make of your newly bought property? – Nothing !!

Hence, it is crucial to observe the condition of every potential property and take into
account the potential repair fees required for that property, and factor into the overall
pricing of the property to see if it is still worthwhile to buy that property.

Conclusion
———————————-

To conclude, I have shared with you some valuable insights to why you should adopt Real Estate Investment as one of the very feasible methods to grow your money, and create a steady passive income to achieve your long term financial freedom goal and also essential tips for choosing a property to fulfill that aim.

Next steps is to take actions, and wish you success in your Real Estate Investments !!

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Jun

19

Elevating your profits with Commercial Real Estate

Posted By: Ramon Rivas on June 19, 2010 at 7:12 pm

Investments in commercial real estate is good way of elevating your profits. But these investments have to be intelligent and thorough otherwise you will be risking bankruptcy. A well planned and intelligent investment can make wonders for you. Investors tend to make mistakes while dealing with commercial real estate but these mistakes can be avoided once you are clear about what you are doing. There are some hints and tips which every investor should follow in order to save his precious investments.

The most important thing is that you should be having a clear picture of the market you are dealing with. The knowledge of the market will safeguard your investment from uneven ups and downs. You can analyze the rate of progress of your investment when you know the trends in the market. It is very difficult or almost impossible for a commercial investor to earn profits from a distressed location. You will have to do some research to know the affects on local job market. Job market is found to be slow in the distressed market. So if you find a slow down in the job market in the proposed area, give a second thought about the location.

Before going for investment, an inspection of entire commercial property is recommended. You can hire a professional for this purpose as his cost will be easily earned if he advises you to buy the right property. The property where building is located must also be inspected properly by a professional to avoid any discrepancies. There are certain cases where people go for the property when they find some exiting deal and ignore to investigate about the history of the property.

Be careful when borrowing for your commercial property. Borrow according to your requirements and which you can pay back. When interest rates are lower than the return on your investments then it is advisable to borrow from the market and invest in commercial property. The earning from the property can be used to payback the interest on the borrowing. Do not forget to analyze the financial market when you have an existing deal.

Always stick to what you know. When you have experience with restaurants you should go for purchasing a restaurant. Purchase what you are acquainted with. Do not absurdly go for deals which you have no experience of.  You can go for some diversified deal if you have someone on your side to guide you during the deal and latter on also. In this case partnering with someone experienced is recommended.

So if you are intended to make lot of money in the commercial real estate market, be intelligent and thorough, think well before going for anything, follow guidelines from the professionals and experienced people, thoroughly analyze the property and financial market, go for what you are acquainted with, avoid dilemmas and stay within your budget. Remember that investment in real estate can earn you huge profits but if your investment is not backed with thorough research and experience then you can risk bankruptcy.

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Jun

15

Foreclosure Short Sales: How They Get Started

Posted By: Ramon Rivas on June 15, 2010 at 8:45 am

Are you looking to profit from the poor real estate market? If so, you will find a lot of tips and information online. Most “professionals” encourage you to target foreclosures and foreclosures alone. Yes, foreclosures have the potential to bring in significant profits, but so do short sales.

What is a foreclosure short sale? It is when the property in question will soon enter into foreclosure. The borrower fell behind on their mortgage payment and does not anticipate a solution in the near future. The property is sold for less than the outstanding mortgage. Not all lenders agree to short sales, but it is becoming a common practice. Short sales enable lenders to bypass the cost, time, and hassle of foreclosure proceedings. They lose money, but they do recoup some. Unless a lender knows a foreclosure auction will bring in more cash, they typically opt for a short sale.

As nice as it is know about short sales, you may wonder how the process got started. If you know a home seller is trying to avoid foreclosure, you may wonder if suggesting a short sale is a viable option.

As previously stated, short sales result from a borrower’s inability to pay. This is the first stage. The homeowner loses their job, receives a pay cut, loses money from the stock market, or had and another unforeseen financial complication. First, borrowers will approach their lender for help. This may include refinancing or a reconditioned loan. If denied, a short sale is the next option.

A borrower cannot decide on a short sale themselves. They must receive approval from their financial lender. This is not always easy. The borrower contacts the mortgage lender to see if a short sale is even a possibility. If it is, documentation is required. Mortgage lenders send various forms for borrowers to submit. The most important is an authorization lender for personal information. The price of a short sale property is determined by the outstanding mortgage. All prospective buyers will see your name, your address, the amount due on your loan, and so forth. The bank needs permission before disclosing this information.

A letter of authorization does not mean the short sale was approved. It is just one of the many stages. Next, most lenders require submission of income, assets, and a hardship explanation. Those who fell behind in their mortgage due to unforeseen circumstances, such as layoffs, as opposed to criminal activity, are likely approved. Mortgage lenders only use short sales when necessary. They discourage borrowers from using it simply as a way to avoid paying for their home.

Documentation of assets and proof of income is used to determine a borrower’s financial standing. As previously stated, lenders use short sales as a last resort. If these documents prove a borrower can no longer pay their bills, a short sale is likely.

The final foreclosure short sale step, which involves listing the property for sale, depends on the lender in question. Some opt for in-house selling and others turn to real estate agents. Regardless, once the lender agrees to a short sale, the property is listed for sale almost immediately.

So, there you have it. That is how a short sale property becomes. Unlike buying foreclosures, there is little to no risk of disgruntled property owners. These individuals agreed to a short sale. As a buyer, this not only means you get a home for a great price, but you should get a well-kept home with occupants who will not put up a fight to leave the property. After all, a short sale was likely their idea.

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May

31

Pros and Cons of Buying Short Sales as First Homes

Posted By: Ramon Rivas on May 31, 2010 at 6:14 am

In terms of short sales and foreclosures, a lot of focus is placed on profits. Yes, if you invest money into foreclosures and short sales, you should turn a profit. There is however one aspect that many rarely take into consideration. That is buying a first home. If you are a hopeful homeowner who is operating on a limited budget or if you just want to limit your costs, foreclosures and short sales should be examined. Anymore can make a acquire offer. They aren’t just for investors.

Now that you know it is possible for anyone to buy short sale properties, is it the right choice for you? It depends. Using short sales to buy a first home does have its pros and cons. What are they?

The Pros

A good value for the money. If you didn’t already know, short sales are properties sold for less than the outstanding mortgage due. For mortgage lenders and borrowers, they are ideal alternatives. Mortgage borrowers avoid embarrassment and the negative financial consequences of foreclosures. Mortgage lenders are able to avoid long and costly foreclosure proceedings. Since most homeowners owe less than the value of their home, you get a good deal. For example, if the outstanding mortgage is for $120,000, you could expect to pay around $100,000. This does seem high, but not when you get a property valued at over $200,000. You still benefit from covering the outstanding mortgage.

Most homes are well-kept. Of course, you will need to make needed upgrades and repairs. homeowners who are unable to pay their mortgage, are unlikely to afford repairs and upgrades. The home may need a new roof, new carpeting, and so forth. With that said, most homes are in good condition. homeowners with delinquent mortgages care about their homes, they just can’t afford them any longer. With foreclosures, you get squatters. These delinquent buyers refuse to leave the home without force. These disgruntled persons are likely to damage property, as they honestly don’t care anymore.

Can later be resold for a profit. If you are looking to buy a cheap first home, your goal is to get a good deal now. Don’t discount the future financial benefits of short sale properties. Since you get a good value for your money, you automatically profit. Using the above mentioned example, if you buy a home with an appraised $200,000 value for only $100,000 you automatically profit from the resale. Add in years of improvements and upgrades and that value should only increase.

The Cons

The process does take time. Most mortgage lenders consider short sales a last ditch effort to avoid foreclosure. They take time to accept a acquire offer. During that time, they are comparing short sales with foreclosure and possibly waiting for a better offer. Some report waiting more than six months for lender approval. Luckily, if you are renting you are in a relatively good position. Negotiate with your current landlord. Let them know you are in the process of trying to buy a property. If you have history of being a good and paying tenant, they may operate on a month-by-month basis.

The cost is higher than foreclosures. Typically, foreclosures have lower selling prices. As previously stated, short sales give you a good value for your money. This is because you get a relatively well-kept for home without going through an intimidating and fast paced foreclosure auction.

So, should you buy a short sale property as a first home? The decision is yours to make. It won’t hurt to look, but if you goal is to avoid intimidating foreclosure auctions and get the best value for your money, foreclosure short sales should be closely examined.

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