Real Estate investing is getting faster and easier

It takes time and effort for a real estate investor to locate a deal. There are lots of properties for sale, but finding the deals is not always easy. Fortunately, many tools and websites are available which provide valuable information and make it easier. Now, an investor can do most of their analysis on a property before they even see it.

One example is a subscription site called Real Quest (www.realquest.com), which allows subscribers to look at liens, tax records and comparable sales. Another site, www.zillow.com even shows an aerial view of some properties. In addition, many of the counties across the U.S. now have free access to tax records on-line. And, of course, if the investor is a licensed agent they have access to the MLS. Taking advantage of these and other on-line resources, an investor can calculate the retail value of a property without even seeing it.

Figuring out the offer amount is important, but most deals are won or lost in the relationship developed with the seller. When meeting or talking to a seller an investor must listen. Why are they selling? What is their financial situation? Where are they moving to? It?s most important to build a rapport. Just listen; there will be plenty of time to ask questions. If the investor can give the seller what they need, it?s much more likely a deal can be made. And, it?s not always about the price; sometimes they need something else, like a certain closing date, help with moving costs, etc.

Some investors who focus on rehabbing properties don?t have time to screen sellers and locate deals. That?s where the value of a wholesaler comes in. A wholesaler spends their time locating and negotiating deals and then selling them to investors who rehab properties. The good wholesalers know how to talk to sellers and negotiate the deals. They provide a valuable service when they buy right. Sometimes they can even provide financing for the rehabber.

Unfortunately, a problem occurs when wholesalers have to hold properties longer than they plan. When that happens, holding costs are passed on to rehabbers and prices increase.

The good news is, the Internet is just starting to change that too. Wholesalers can now use on-line real estate investor auctions, e-mail lists or other creative Internet strategies to quickly find buyers for their deals. And thanks to the Internet, the wholesaler can cut their holding costs and pass those savings to the rehabber. As a result, everyone wins.

If you?re a real estate investor and you?re not using the Internet to locate, analyze or sell your deals, you?re missing out on a great opportunity to save time and cut your costs.

Tom Wood is a real estate investor and broker in St. Louis. He operates an on-line auction site www.reiauctions.com for real estate investors all over the U.S. to buy and sell their deals.

Ten Real Estate Investing Tips

Real estate investing tips tend to be a bit vague, like “invest in the right location,” or “make sure the numbers work.” Actually, tips like these are important principles to remember. However, since they have been well represented in other articles, I want to share a few more specific tips with you.

1. Listen to the market. The cabinet guy looked to me for a decision. I realized that I knew nothing at all about which cabinets people like, so I asked him which ones others were choosing, and he pointed to one that three quarters of his last forty customers had chosen. That’s the one I want, I told him. Why argue with the market you are trying to sell to?

2. Do your own research. The real estate agent might show you only the comparable sales that make the property look more valuable. Do your own research. Some counties have made it easy now, with sales prices online. You can also search any number of sites with MLS listings, just to get an idea about the asking prices of other nearby properties.

3. Partner carefully. When you do a deal with partners, be the money or the management, but not both. Group decisions tend not to work well in real estate, and will cause you much stress. Once you decide on and agree to a plan, step back if you are investing the capital, and let your partner do his thing. Of course, step up and take control if you are managing the project.

4. Negotiate openly. Just ask a seller outright, “What do you want to get out of this?” It is rare that someone is offended by this simple question, and it saves you from wasting valuable time talking about things that don’t interest him or her. Once you get a clear answer, you can decide if you can give them what they want, and still get what you need.

5. Invest safely. Investing isn’t gambling. There is always risk, but the difference is that the odds are in your favor. If not, you are gambling. This why you shouldn’t invest based on continued price increases. There is no guarantee that prices will continue up at any particular rate. Do deals that work even if prices go nowhere, and if values go up, you’re that much better off.

6. Run the numbers. It is about the numbers, and if it is income property, it’s about one number in particular: cash flow. Whatever the local formulas are, whether gross rent multipliers or capitalization rates or whatever, just be sure that after every last expense you’ll have cash flow from the very first month.

Rules, formulas and real estate tips are really just guidelines. Even the rule above about cash flow can be broken if you know that rents can be raised soon, for example. You have to use common sense and learn from experience, and you can’t replace good analysis with rules, formulas and real estate tips.

About the Author

Steve Gillman has invested in real estate for years. To learn more, get a free real estate investing course, and see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com

Ten Real Estate Investing Tips

Real estate investing tips tend to be a bit vague, like “invest in the right location,” or “make sure the numbers work.” Actually, tips like these are important principles to remember. However, since they have been well represented in other articles, I want to share a few more specific tips with you.

1. Listen to the market. The cabinet guy looked to me for a decision. I realized that I knew nothing at all about which cabinets people like, so I asked him which ones others were choosing, and he pointed to one that three quarters of his last forty customers had chosen. That’s the one I want, I told him. Why argue with the market you are trying to sell to?

2. Do your own research. The real estate agent might show you only the comparable sales that make the property look more valuable. Do your own research. Some counties have made it easy now, with sales prices online. You can also search any number of sites with MLS listings, just to get an idea about the asking prices of other nearby properties.

3. Partner carefully. When you do a deal with partners, be the money or the management, but not both. Group decisions tend not to work well in real estate, and will cause you much stress. Once you decide on and agree to a plan, step back if you are investing the capital, and let your partner do his thing. Of course, step up and take control if you are managing the project.

4. Negotiate openly. Just ask a seller outright, “What do you want to get out of this?” It is rare that someone is offended by this simple question, and it saves you from wasting valuable time talking about things that don’t interest him or her. Once you get a clear answer, you can decide if you can give them what they want, and still get what you need.

5. Invest safely. Investing isn’t gambling. There is always risk, but the difference is that the odds are in your favor. If not, you are gambling. This why you shouldn’t invest based on continued price increases. There is no guarantee that prices will continue up at any particular rate. Do deals that work even if prices go nowhere, and if values go up, you’re that much better off.

6. Run the numbers. It is about the numbers, and if it is income property, it’s about one number in particular: cash flow. Whatever the local formulas are, whether gross rent multipliers or capitalization rates or whatever, just be sure that after every last expense you’ll have cash flow from the very first month.

Rules, formulas and real estate tips are really just guidelines. Even the rule above about cash flow can be broken if you know that rents can be raised soon, for example. You have to use common sense and learn from experience, and you can’t replace good analysis with rules, formulas and real estate tips.

About the Author

Steve Gillman has invested in real estate for years. To learn more, get a free real estate investing course, and see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com

Real Estate Investing Analysis

This article gives you a foundational understanding of residential real estate investing analysis, and a formula for determining how much to offer when purchasing property for rehab and wholesale purposes.

Anyone can learn the simple skill of real estate investing analysis. The important point to understand is that the analysis will vary, depending on the type of real estate being discussed. This article focuses exclusively on residential single family and duplex properties purchased for rehab and wholesale purposes.

The first step in your real estate investing analysis is to determine the fair market value of the property after all repairs have been completed. This is done most accurately by having a Realtor run a comparable sales comparison report. Make sure the properties your Realtor chooses are truly comparable, not simply the same bedroom count, but also the same type of construction, in the same neighborhood, roughly the same age, etc..

The next step in performing your real estate investing analysis is to determine the cost of all needed repairs to bring the property into what I call ?retail condition?. In other words, how much will all the repairs cost to complete, including materials, labor, and holding costs?

Once you have determined these two values- After Repair Market Value and Repair Costs- the next step in the real estate investing analysis process is some simple subtraction. Subtract the Repair Costs from the After Repair Market Value to arrive at the property?s Current Market Value.

Once you are armed with the Current Market Value of a property, it?s a simple matter to complete the real estate investing analysis and arrive at your offer price. Your offer price will be the Current Market Value minus either $20,000 or 30%, whichever is lower.

To make this real estate investing analysis process all very clear, here’s an example: Suppose you are looking at a single family home in a mid-priced neighborhood. The Realtor pulls Comparables and you determine that the After Repair Value of the property is $150,000. You further estimate that the repairs needed will cost $30,000 to complete, including materials, labor, and holding costs.

Next, as part of your real estate investing analysis, you subtract the $30,000 Repair Costs from the $150,000 After Repair Value, and arrive at a Current Market Value of $120,000. You subtract $20,000 from $120,000 and get $100,000. You also subtract 30% from $120,000 and get $84,000. The lesser of $100,000 or $84,000 is $84,000, so that is your offer price- $84,000.

Using this formula for real estate investing analysis you may miss out on a few properties you could have bought otherwise, but you will never overpay for a property, and you will always make money.

Now, go make more offers!

Real Estate Investing - Made Easy

It takes time and effort for a real estate investor to locate a deal. There are lots of properties for sale, but finding the deals has not always been easy. Fortunately, many tools and websites now available are making it easier. There are sites which help generate leads from motivated sellers and there are sites which provide valuable information to assist the investor in determining property values. As a result, investors can get leads and do most of their analysis before they even see a property.

One site that is good for determining property values, is a subscription site called Real Quest (http://www.realquest.com). Real Quest allows subscribers to look at liens, tax records and comparable sales. Another site, http://www.zillow.com which is free, even shows an aerial view of some properties. In addition, many of the counties across the U.S. now have free access to tax records on-line. And, of course, if the investor is a licensed agent they have access to the MLS. Taking advantage of these and other on-line resources, an investor can calculate the retail value of a property without even seeing it.

Figuring out the offer amount is important, but most deals are won or lost in the negotiation. Before an investor even tries to negotiate price, they need to develop a relationship with the seller. The best way to do this is to listen. Why are they selling? What is their financial situation? Where are they moving to? It?s most important to build rapport. Just listen; there will be plenty of time to ask questions. If the investor can give the seller what they need, it?s much more likely a deal can be made. And, it?s not always about the price; sometimes they need something else, like a certain closing date, help with moving costs, etc.

Some investors focus just on rehabbing properties and don?t have time to screen sellers and locate deals. That?s where the value of a good wholesaler comes in. A wholesaler spends their time locating and negotiating deals and then selling them to investors who rehab properties. The good wholesalers know how to talk to sellers and negotiate the deals. They provide a valuable service when they buy right and some even provide financing for the rehabber.

Unfortunately, wholesalers sometimes have to hold properties longer than they plan. When that happens, holding costs are passed on to rehabbers and prices increase.

The good news is, the Internet is just starting to change that too. Wholesalers can now use on-line real estate investor auctions, e-mail lists or other creative Internet strategies to quickly find buyers for their deals. And thanks to the Internet, the wholesaler can cut their holding costs and pass those savings to the rehabber. As a result, everyone wins.

If you?re a real estate investor and you?re not using the Internet to locate, analyze or sell your deals, you?re missing out on a great opportunity to save time and cut your costs.

About the Author:

Tom Wood is a real estate investor and broker in St. Louis, MO. He owns and operates an internet auction site for real estate investors to buy and sell properties. http://www.reiauctions.com

Real Estate investing is getting faster and easier

It takes time and effort for a real estate investor to locate a deal. There are lots of properties for sale, but finding the deals is not always easy. Fortunately, many tools and websites are available which provide valuable information and make it easier. Now, an investor can do most of their analysis on a property before they even see it.

One example is a subscription site called Real Quest (www.realquest.com), which allows subscribers to look at liens, tax records and comparable sales. Another site, www.zillow.com even shows an aerial view of some properties. In addition, many of the counties across the U.S. now have free access to tax records on-line. And, of course, if the investor is a licensed agent they have access to the MLS. Taking advantage of these and other on-line resources, an investor can calculate the retail value of a property without even seeing it.

Figuring out the offer amount is important, but most deals are won or lost in the relationship developed with the seller. When meeting or talking to a seller an investor must listen. Why are they selling? What is their financial situation? Where are they moving to? It?s most important to build a rapport. Just listen; there will be plenty of time to ask questions. If the investor can give the seller what they need, it?s much more likely a deal can be made. And, it?s not always about the price; sometimes they need something else, like a certain closing date, help with moving costs, etc.

Some investors who focus on rehabbing properties don?t have time to screen sellers and locate deals. That?s where the value of a wholesaler comes in. A wholesaler spends their time locating and negotiating deals and then selling them to investors who rehab properties. The good wholesalers know how to talk to sellers and negotiate the deals. They provide a valuable service when they buy right. Sometimes they can even provide financing for the rehabber.

Unfortunately, a problem occurs when wholesalers have to hold properties longer than they plan. When that happens, holding costs are passed on to rehabbers and prices increase.

The good news is, the Internet is just starting to change that too. Wholesalers can now use on-line real estate investor auctions, e-mail lists or other creative Internet strategies to quickly find buyers for their deals. And thanks to the Internet, the wholesaler can cut their holding costs and pass those savings to the rehabber. As a result, everyone wins.

If you?re a real estate investor and you?re not using the Internet to locate, analyze or sell your deals, you?re missing out on a great opportunity to save time and cut your costs.

Tom Wood is a real estate investor and broker in St. Louis. He operates an on-line auction site www.reiauctions.com for real estate investors all over the U.S. to buy and sell their deals.

Ten Real Estate Investing Tips

Real estate investing tips tend to be a bit vague, like “invest in the right location,” or “make sure the numbers work.” Actually, tips like these are important principles to remember. However, since they have been well represented in other articles, I want to share a few more specific tips with you.

1. Listen to the market. The cabinet guy looked to me for a decision. I realized that I knew nothing at all about which cabinets people like, so I asked him which ones others were choosing, and he pointed to one that three quarters of his last forty customers had chosen. That’s the one I want, I told him. Why argue with the market you are trying to sell to?

2. Do your own research. The real estate agent might show you only the comparable sales that make the property look more valuable. Do your own research. Some counties have made it easy now, with sales prices online. You can also search any number of sites with MLS listings, just to get an idea about the asking prices of other nearby properties.

3. Partner carefully. When you do a deal with partners, be the money or the management, but not both. Group decisions tend not to work well in real estate, and will cause you much stress. Once you decide on and agree to a plan, step back if you are investing the capital, and let your partner do his thing. Of course, step up and take control if you are managing the project.

4. Negotiate openly. Just ask a seller outright, “What do you want to get out of this?” It is rare that someone is offended by this simple question, and it saves you from wasting valuable time talking about things that don’t interest him or her. Once you get a clear answer, you can decide if you can give them what they want, and still get what you need.

5. Invest safely. Investing isn’t gambling. There is always risk, but the difference is that the odds are in your favor. If not, you are gambling. This why you shouldn’t invest based on continued price increases. There is no guarantee that prices will continue up at any particular rate. Do deals that work even if prices go nowhere, and if values go up, you’re that much better off.

6. Run the numbers. It is about the numbers, and if it is income property, it’s about one number in particular: cash flow. Whatever the local formulas are, whether gross rent multipliers or capitalization rates or whatever, just be sure that after every last expense you’ll have cash flow from the very first month.

Rules, formulas and real estate tips are really just guidelines. Even the rule above about cash flow can be broken if you know that rents can be raised soon, for example. You have to use common sense and learn from experience, and you can’t replace good analysis with rules, formulas and real estate tips.

About the Author

Steve Gillman has invested in real estate for years. To learn more, get a free real estate investing course, and see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com

Real Estate investing is getting faster and easier

It takes time and effort for a real estate investor to locate a deal. There are lots of properties for sale, but finding the deals is not always easy. Fortunately, many tools and websites are available which provide valuable information and make it easier. Now, an investor can do most of their analysis on a property before they even see it.

One example is a subscription site called Real Quest (www.realquest.com), which allows subscribers to look at liens, tax records and comparable sales. Another site, www.zillow.com even shows an aerial view of some properties. In addition, many of the counties across the U.S. now have free access to tax records on-line. And, of course, if the investor is a licensed agent they have access to the MLS. Taking advantage of these and other on-line resources, an investor can calculate the retail value of a property without even seeing it.

Figuring out the offer amount is important, but most deals are won or lost in the relationship developed with the seller. When meeting or talking to a seller an investor must listen. Why are they selling? What is their financial situation? Where are they moving to? It?s most important to build a rapport. Just listen; there will be plenty of time to ask questions. If the investor can give the seller what they need, it?s much more likely a deal can be made. And, it?s not always about the price; sometimes they need something else, like a certain closing date, help with moving costs, etc.

Some investors who focus on rehabbing properties don?t have time to screen sellers and locate deals. That?s where the value of a wholesaler comes in. A wholesaler spends their time locating and negotiating deals and then selling them to investors who rehab properties. The good wholesalers know how to talk to sellers and negotiate the deals. They provide a valuable service when they buy right. Sometimes they can even provide financing for the rehabber.

Unfortunately, a problem occurs when wholesalers have to hold properties longer than they plan. When that happens, holding costs are passed on to rehabbers and prices increase.

The good news is, the Internet is just starting to change that too. Wholesalers can now use on-line real estate investor auctions, e-mail lists or other creative Internet strategies to quickly find buyers for their deals. And thanks to the Internet, the wholesaler can cut their holding costs and pass those savings to the rehabber. As a result, everyone wins.

If you?re a real estate investor and you?re not using the Internet to locate, analyze or sell your deals, you?re missing out on a great opportunity to save time and cut your costs.

Tom Wood is a real estate investor and broker in St. Louis. He operates an on-line auction site www.reiauctions.com for real estate investors all over the U.S. to buy and sell their deals.

Real Estate Investing Analysis

This article gives you a foundational understanding of residential real estate investing analysis, and a formula for determining how much to offer when purchasing property for rehab and wholesale purposes.

Anyone can learn the simple skill of real estate investing analysis. The important point to understand is that the analysis will vary, depending on the type of real estate being discussed. This article focuses exclusively on residential single family and duplex properties purchased for rehab and wholesale purposes.

The first step in your real estate investing analysis is to determine the fair market value of the property after all repairs have been completed. This is done most accurately by having a Realtor run a comparable sales comparison report. Make sure the properties your Realtor chooses are truly comparable, not simply the same bedroom count, but also the same type of construction, in the same neighborhood, roughly the same age, etc..

The next step in performing your real estate investing analysis is to determine the cost of all needed repairs to bring the property into what I call ?retail condition?. In other words, how much will all the repairs cost to complete, including materials, labor, and holding costs?

Once you have determined these two values- After Repair Market Value and Repair Costs- the next step in the real estate investing analysis process is some simple subtraction. Subtract the Repair Costs from the After Repair Market Value to arrive at the property?s Current Market Value.

Once you are armed with the Current Market Value of a property, it?s a simple matter to complete the real estate investing analysis and arrive at your offer price. Your offer price will be the Current Market Value minus either $20,000 or 30%, whichever is lower.

To make this real estate investing analysis process all very clear, here’s an example: Suppose you are looking at a single family home in a mid-priced neighborhood. The Realtor pulls Comparables and you determine that the After Repair Value of the property is $150,000. You further estimate that the repairs needed will cost $30,000 to complete, including materials, labor, and holding costs.

Next, as part of your real estate investing analysis, you subtract the $30,000 Repair Costs from the $150,000 After Repair Value, and arrive at a Current Market Value of $120,000. You subtract $20,000 from $120,000 and get $100,000. You also subtract 30% from $120,000 and get $84,000. The lesser of $100,000 or $84,000 is $84,000, so that is your offer price- $84,000.

Using this formula for real estate investing analysis you may miss out on a few properties you could have bought otherwise, but you will never overpay for a property, and you will always make money.

Now, go make more offers!

Real Estate Investing Analysis

This article gives you a foundational understanding of residential real estate investing analysis, and a formula for determining how much to offer when purchasing property for rehab and wholesale purposes.

Anyone can learn the simple skill of real estate investing analysis. The important point to understand is that the analysis will vary, depending on the type of real estate being discussed. This article focuses exclusively on residential single family and duplex properties purchased for rehab and wholesale purposes.

The first step in your real estate investing analysis is to determine the fair market value of the property after all repairs have been completed. This is done most accurately by having a Realtor run a comparable sales comparison report. Make sure the properties your Realtor chooses are truly comparable, not simply the same bedroom count, but also the same type of construction, in the same neighborhood, roughly the same age, etc..

The next step in performing your real estate investing analysis is to determine the cost of all needed repairs to bring the property into what I call ?retail condition?. In other words, how much will all the repairs cost to complete, including materials, labor, and holding costs?

Once you have determined these two values- After Repair Market Value and Repair Costs- the next step in the real estate investing analysis process is some simple subtraction. Subtract the Repair Costs from the After Repair Market Value to arrive at the property?s Current Market Value.

Once you are armed with the Current Market Value of a property, it?s a simple matter to complete the real estate investing analysis and arrive at your offer price. Your offer price will be the Current Market Value minus either $20,000 or 30%, whichever is lower.

To make this real estate investing analysis process all very clear, here’s an example: Suppose you are looking at a single family home in a mid-priced neighborhood. The Realtor pulls Comparables and you determine that the After Repair Value of the property is $150,000. You further estimate that the repairs needed will cost $30,000 to complete, including materials, labor, and holding costs.

Next, as part of your real estate investing analysis, you subtract the $30,000 Repair Costs from the $150,000 After Repair Value, and arrive at a Current Market Value of $120,000. You subtract $20,000 from $120,000 and get $100,000. You also subtract 30% from $120,000 and get $84,000. The lesser of $100,000 or $84,000 is $84,000, so that is your offer price- $84,000.

Using this formula for real estate investing analysis you may miss out on a few properties you could have bought otherwise, but you will never overpay for a property, and you will always make money.

Now, go make more offers!

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