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Posts Tagged ‘real estate investing’

Many real Real Estate Investing Programs taught by well known gurus will teach you to go out and make 100 low ball offers to find a good priced piece of real estate. The gurus create this sensation that makes you feel like the only way you’re a successful real estate investor is if you are practically stealing real estate you’re getting them so cheap.

The reality is that most people do not have the time, energy or network it takes to make 100 offers in search of a cheap property. And, the truth is that while you are obsessed about finding that rock bottom priced rental property, you are missing out on really good deals that could be making you money right now!

Let me give you an example of this. When my husband and I purchased a duplex, we instantly added $20,000 to our net worth and $500/month positive cash flow to our pockets. And we did it simply by getting to the heart of the sellers problem and offering a perfect solution.

Notice I didn’t say anything about making low ball offers, hard nose negotiation tactics or crazy clauses to squeeze every ounce of blood from the seller? All we did was look for a problem to solve.

The property was bank owned. We learned the outstanding balance on the mortgage by digging through some public records. We pulled a bunch of comparable properties and analyzed that the property was worth about $20,000 more than the outstanding balance on the mortgage.

The bank had two problems. They needed to sell the duplex quickly to get rid of the debt, and they had to sell it at a price that would allow them to recover the outstanding mortgage amount. Most other bidders went in with low-ball offers and lost out on this high-quality income-generating property. But my husband and I took a different tack. We offered a quick close and a price equal to the amount of the outstanding mortgage and we had the winning bid.

This property makes us $500 every month and added to our net worth the day we bought it.

As a real estate investor buying a rental property, turn your attention to finding the vendor’s biggest issue and figuring out how you can solve it. When you take a problem-solving approach to real estate investing, you are more likely to create an even better deal for yourself than if you had focused only on the purchase price. And, no matter what, you’ll be saving yourself the headache and pain of making 100 different offers!

Learn how to buy financial freedom, cash making investments and wealth creation with tips with your free Real Estate Investing Starter Tips Guide. Get real estate invest tips like: How to find rental property, resources and steps for renting out your property, and making cash with real estate from Julie’s weekly real estate investing newsletter.

So you decided to get into real estate investing.Good for you! While at first, real estate investing can seem a bit overwhelming, if you pay attention, you will be paid in rewards and dividends for years.

How does one start with the business of real estate investing? Let’s look at plans to get started buying and selling real estate property:

Plug into your local real estate investors association. Most medium to large communities have a real estate club where other real estate investors attend regular meetings. These are other investors with the same goals and dreams as you.

People gathered together with like minds create a social atmosphere that motivates new investors to take action. Club members share ideas with other members, discussing what works and what does not work in real estate investing.

Before you spend a dime. Make sure you map out what you want to invest in and what your going to do with it. BE SPECIFIC. What type of property. are you going to hold it for apprecation or are you going to turn it over?

In the beginning it is important to decide what types of properties to focus on. If you wish to buy rental properties, then focus on those. If flipping houses is in your plans, then concentrate on those types of properties. This is important because it allows the new investor to become a specialist within that area. Becoming a specialist leads to fewer costly mistakes.

Ok now comes the fun part. you need to find the people that offer the skills you need to accomplish your plan. Contractors,handy men, sub-contractors etc. Finding the right people to make your team is the hardest part of this game. (I use the same people for the same job on EVERY property I buy)

Lets say you choose a “fixer” for your first project. Be ready to put on your team a contractor, a electrician, heating and AC guy..and of course a plumber. Now a word to the wise. IF you can find one…a GREAT handyman will be able to do all the above metioned and normally at a far cheaper cost.

Find a good agent. THis is harder then you might think. You see most agents dont work well with investors. Why? Investors want the agent to do tons of work the normal buyer doesnt. Offers counter offers…spread sheets to show profits and losses..not to mention all the surrounding research on the sales in the area in the last 6-12 months. A good agent will do this. a good agent understand that they may sell you more then one house in a years time..and that means repeat business for the agent.

Time is always a key factor in real estate investing, so always look to ways to “turn” a property in the least amount of time. A property that remains unsold or not rented is eating up profits every day it in your possession. Learn to cut the losses on properties that fail to meet their profit potential.

Every beginning real estate investor will make mistakes that cut into potential profits. It is imperative to recognize these mistakes and correct them before they can cripple the business.

Be efficent, and resourcefull. Keep your eye on your bottom line and you will grow a nice little investment business.