Time Is Money For Real Estate Investing
March 24, 2010 by Kenny Santos
Filed under Real Estate Investing
A popular phrase is that time is money. I’m sure you’ve heard that - right?
Well let me ask you something, if time is money, then how are you investing your time in your real estate investment business? Is it a profitable investment?
Are you doing things that will bring a return on your investment or are you wasting the one equal resource among all of us? With so many opportunities available to us, sometimes it’s easy to get caught up watching what everyone else is doing instead of minding our own business. See, as a real estate entrepreneur you must constantly be on guard to always respect and honor your time.
So, allow me to go over the areas that you should be investing your time. These areas are the most important areas for you to see real growth in your real estate investment business.
First, you should focus on your marketing systems to continuously bring you leads of motivated sellers every single month that will beg you to buy their home. The marketing of your business is the lifeblood to its growth. As you are first starting out, you may have a limited budget; therefore you must focus on low cost, direct response strategies to get people to act immediately. Then, as you complete a few deals, re-invest a percentage of your profits back into your business for marketing.
Next, you must focus on building relationships. Everyone that you meet may know of someone that you could help out. When you think of building relationships, think about the people that see motivated sellers all day long and work to build alliances with these people as they can refer you business every single month. After all, many of these businesses are advertising and it’s impossible for them to assist everyone that comes through the doors. For example, if you develop a relationship with a mortgage company, they could refer you leads of homeowners that are in default that call trying to refinance before they are foreclosed on. You could by their house to stop the foreclosure. See, these types of loans are almost impossible to do and you could be helping the mortgage company by taking care of their customer. And as a result, you’ll get repeat business.
The next area I want to discuss is mastering the art of negotiations with motivated sellers. You must first learn to build rapport with each seller before talking about any numbers relating to the house that you’re looking to purchase. It’s a proven fact that negotiations will go better for you if the party likes you. So, find an in that you can talk about with the seller, then slowly move into talking about the house focusing on a solution for the pain they are going through by owning the property.
Finally, last and certainly not least, your exit strategy becomes one of the major pieces to this puzzle that you must master to creating big paydays. Many times this can be a tougher area to crack because all your focus has been on how to acquire the deal and not on how to sell it. Just look at most real estate forums and you’ll see everyone wants to focus on the latest, greatest way to acquire a deal. Master your exit strategies and create a systemized approach to getting out of deals in record time.
So, if you want to grow your business to where you are doing 1-2 deals or more per month then you need a system that is constantly working for you bringing you deals in every month. These systems help to take the guesswork out of what you should do next. Now, invest your time wisely creating systems in these four areas and watch your real estate investment business grow!
About the Author
Derek Pierce, full time Real Estate Investor, shows
you the exact strategies to his success in his Free Book: “How I
Went From Corporate Guinea Pig To Real Estate Success”. Get
your copy and Real Estate Investing Tips by going to http://www.thereisecrets.com
Time Is Money For Real Estate Investing
March 6, 2010 by Kenny Santos
Filed under Real Estate Investing
A popular phrase is that time is money. I’m sure you’ve heard that - right?
Well let me ask you something, if time is money, then how are you investing your time in your real estate investment business? Is it a profitable investment?
Are you doing things that will bring a return on your investment or are you wasting the one equal resource among all of us? With so many opportunities available to us, sometimes it’s easy to get caught up watching what everyone else is doing instead of minding our own business. See, as a real estate entrepreneur you must constantly be on guard to always respect and honor your time.
So, allow me to go over the areas that you should be investing your time. These areas are the most important areas for you to see real growth in your real estate investment business.
First, you should focus on your marketing systems to continuously bring you leads of motivated sellers every single month that will beg you to buy their home. The marketing of your business is the lifeblood to its growth. As you are first starting out, you may have a limited budget; therefore you must focus on low cost, direct response strategies to get people to act immediately. Then, as you complete a few deals, re-invest a percentage of your profits back into your business for marketing.
Next, you must focus on building relationships. Everyone that you meet may know of someone that you could help out. When you think of building relationships, think about the people that see motivated sellers all day long and work to build alliances with these people as they can refer you business every single month. After all, many of these businesses are advertising and it’s impossible for them to assist everyone that comes through the doors. For example, if you develop a relationship with a mortgage company, they could refer you leads of homeowners that are in default that call trying to refinance before they are foreclosed on. You could by their house to stop the foreclosure. See, these types of loans are almost impossible to do and you could be helping the mortgage company by taking care of their customer. And as a result, you’ll get repeat business.
The next area I want to discuss is mastering the art of negotiations with motivated sellers. You must first learn to build rapport with each seller before talking about any numbers relating to the house that you’re looking to purchase. It’s a proven fact that negotiations will go better for you if the party likes you. So, find an in that you can talk about with the seller, then slowly move into talking about the house focusing on a solution for the pain they are going through by owning the property.
Finally, last and certainly not least, your exit strategy becomes one of the major pieces to this puzzle that you must master to creating big paydays. Many times this can be a tougher area to crack because all your focus has been on how to acquire the deal and not on how to sell it. Just look at most real estate forums and you’ll see everyone wants to focus on the latest, greatest way to acquire a deal. Master your exit strategies and create a systemized approach to getting out of deals in record time.
So, if you want to grow your business to where you are doing 1-2 deals or more per month then you need a system that is constantly working for you bringing you deals in every month. These systems help to take the guesswork out of what you should do next. Now, invest your time wisely creating systems in these four areas and watch your real estate investment business grow!
About the Author
Derek Pierce, full time Real Estate Investor, shows
you the exact strategies to his success in his Free Book: “How I
Went From Corporate Guinea Pig To Real Estate Success”. Get
your copy and Real Estate Investing Tips by going to http://www.thereisecrets.com
Power of Relationships for Real Estate Investing
February 26, 2010 by Kenny Santos
Filed under Real Estate Investing
Let’s talk about relationships and how they affect your bottom line as a real estate investor.
You’ve heard it time and time again: build relationships. Well I hate to sound like a broken record, but I’m going tell you again - Relationships is a key component to your bottom line as an investor.
Let me tell you a story about a deal I did a couple of years ago to help emphasize my point.
There was this gorgeous property located in a fairly elaborate subdivision called Heathrow. Most of the homes are pretty new and are all brick with very nice amenities. The property was a large 3-bedroom brick 2-1/2 bath.
I saw the foreclosure notice in the newspaper, so I immediately start calling some of the family to make a deal on this property. I get in touch with a lady lets call Susan for the sake of privacy. Susan and her husband had built the home around five years earlier. The house was vacant and had been vacant for months. I discovered after talking with her, that Susan and her husband had a very rocky marriage and were now divorced. She was doing all she could as a single Mom to make ends meet. Her ex-husband had a medical discharge from the military from a rare disease that left him paralyzed. Susan was ready to move forward. She’d been through an ugly divorce, a bankruptcy, and now was going through a foreclosure. It was really tough on her. Now, her ex-husband had already moved to Washington and was re-married.
Here are the numbers on the deal:
Value: $165K Owed amount on mortgage: $100K Behind: $10K
I dealt with what seemed like every family member that could have had any possible interest in this deal and tried to get this deal sealed up, but to no avail. Susan, the ex-wife had already signed her interest over to me. However, the ex-husband that lived in Washington kept stonewalling my efforts and wasn’t willing to deal. Then, I get this phone call two days before the auction. No kidding, it was 2 days away, and now all of a sudden the husband wants to deal. With only two days before the foreclosure auction, I can get a deal done if the people are in my area so that I can meet with them. I’ve done it numerous times before. But when you add the fact that this guy was on the other side of the country, it makes it almost impossible. That is, unless I happen to know someone in Washington….
See, I happened to meet a guy named John at a seminar several months beforehand and we became friends. We emailed and talked on a regular basis about how to improve our businesses. So, I called him and asked him for a favor and told him I’d make it worth his while. And so, John agrees and gets the deed signed later that night and sends the docs overnight via FedEx to me. I reinstate their loan 1 hour before the foreclosure sale and the deal is complete. Whew…. Take a Deep Breath - right?
Now, after the deal closed I sent John $2K for his troubles. Anyway, my point is this deal would’ve never happened if I’d not built a friendship with John. And notice that I just didn’t call him out of the blue asking for this favor. We were already friends and had already established this friendship months before. The moral to the story is to use the Golden Rule in all circumstances. I’d never thought in my wildest dreams that John could’ve helped me in Alabama. And the truth is that there’ve been more people to help me because I go out of my way to build relationships with others.
The simplest way to accomplish this is to treat everyone with the utmost respect even if there’s no financial gain for you. Work to build win-win relationships with everyone you touch - the local locksmith, the banker, the moving company, the loss mitigation rep you called to get a short sale approved, and the local real estate agents. You never know when some of these professionals have the ability to direct you to the next hot deal for you to acquire.
About the Author
Derek Pierce, full time Real Estate Investor, shows
you the exact strategies to his success in his Free Book: “How I
Went From Corporate Guinea Pig To Real Estate Success”. Get
your copy and Real Estate Investing Tips by going to http://www.thereisecrets.com
Real Estate Investing: Notes And Trust Deeds
February 23, 2010 by Kenny Santos
Filed under Real Estate Investing
People in need of cash borrow from lenders signing a promissory note and secure the loan with a deed of trust against the title of the borrower?s property. People get hold of promissory notes when they lend money or when they buy notes.
The note is a written, signed agreement between the lender and the borrower, where in the borrower promises to repay the loan. The promissory note includes details such as the name and address of the lender and the borrower, the loan amount, the interest rates, the frequency of the repayment as well as the amount to be repaid in each installment, the tenure of the loan, prepayment penalties if any.
The borrower usually transfers his property {held in trust} to an independent third party. The third party holds the conditional title For the lenders sake and has the power to re-convey the deed once the loan has been repaid in full as per the agreement as well as having the power to dispose the property should the borrower default on his payments. This process is termed as foreclosure; it can be judicial or non?judicial as per the desire of the lender.
Real Estate Investing In Notes and Trust Deeds; It is rather a risky investment; therefore, investors need to find a reputable, experienced mortgage loan broker. They have to check the market value as well as the equity of the property to be used as collateral making sure the loan-to-value ratio is favorable; check the borrowers? credit records and profile to ascertain they are low risk investments. Escrowing the processes involved in granting of the loan or the procurement of the note is another important detail to be noted. Checking with the insurance company to what extent the lender is covered will be prudent. A detailed description of the property, its location, market value, pending lawsuits against the property if any, if any other lien exist against the property etc. has to be carefully researched and analyzed. Hiring good escrow agents who are licensed by the department of corporations is crucial.
Investors have to take necessary action incase the borrower defaults and foreclosure of the property is the only option left. It could be a problem if there is a senior lien on the property. Make sure that the property does not have senior lien when you procure the trust deed. If there is a senior lien, make sure your foreclosure date precedes it. Foreclosure if done judicially may take 3 to 4 months where as if done privately may be accomplished within 30 days. Many people have profited in real estate by investing in notes and trust deeds.
There are firms that sell services as well as products to help you with investing in real estates through notes and bond deeds.
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Alexander Gordon is a writer for www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business. Business Owners all across the country are joining “The Community of Small Business Owners? to receive and provide strategies, insight, tips, support and more on starting, managing, growing, and selling their businesses. As a member, you will have access to true Millionaire Business Owners who will provide strategies and tips from their real-life experiences. |
Real estate investing does not have to be complicated!
February 21, 2010 by Kenny Santos
Filed under Real Estate Investing
Real estate investing does not have to be complicated
Do you know what is the hardest deal to ever do in real estate?
Your first one!
The challenge is that most people will quit before ever getting their first deal.
I also feel that there is sooooooo much information available in the marketplace that even getting started is almost as challenging as getting your first deal!
I think one of the reasons for this is there are so many ways to invest in real estate!
Do I buy No Money Down?
Do I invest in Foreclosures or Pre-foreclosures?
Do I invest in “Fixer Uppers?”
Do I do “Flips”?
Do I adopt a “Buy and Hold?”
Do I Lease-Purchase or Lease option?
Do I buy “Subject to” the existing financing?
Do I buy Single-family homes? Condos? Mobile Homes? Apartment buildings?
You get the idea! There are so many ways to invest in real estate today!
Ok, let’s say you’re lucky to pick one way to invest in real estate, let’s say Foreclosures.
There seems to be a hundred ways to do a foreclosure deal!
Now, in addition to finding your first foreclosure deal, you then have to figure out which of the hundred ways to do that deal!
I still wince in pain whenever I see a real estate program that has anywhere from 12 to 36 CD’s or audio tapes!
Who really has the time to go through all of that information?
And even if you make time, can you say, “Information OVERLOAD”?
We always said that we did not want to learn 100 ways to do a real estate deal but one simple, proven way that would take us to the bank!
When we wrote “Buy With No Credit–How to Make Money This Month in Real Estate” it was with the belief that people would appreciate a course that simply “cut to the chase” and taught one simple method (no credit checks and $1-10.00 down) to invest in real estate.
Something so simple that anyone could read it in a day and begin contacting homeowners the very same night!
We appreciate people that do not “Mickey Mouse” around and are direct and to the point!
So our strongest recommendation is to find one way to invest in real estate and then pay the price and really learn that one method.
Vickie and I recently went to our first “bootcamp” (yes we believe in continuing education)
During this 3 day event, there were 7 “guest speakers” and these speakers all had an upcoming “boot camp” they were promoting. The thing that blew us away was all the people who signed up for those additional “bootcamps”.
We saw some folks that signed up for every one!
I wanted to scream out, “What about the information that was being presented this weekend?!”
When would these people ever have time to implement the strategies they were learning that weekend?
The reality is that most people would rather write a check then to take action!
So the only action they have in a year is going from Bootcamp to Bootcamp, a massive credit card bill, and to officially be a “jack of all trades” in real estate!
Do not try to be a “jack of all trades” in real estate!
Jacks of all trades in real estate never make the money that the specialist will!
Let me ask you a question: Who makes the most money in the health field? Is it the General Practitioner (Family doctor) or the Specialist?
The Specialist, of course!
Choose this day to become a specialist in one area in real estate and then apply yourself to becoming a Specialist in that one method!
Once you have mastered that one method, then and only then, you can diversify and learn another method.
A word of warning:
When choosing a course or training program on any real estate method, do not confuse the price of the program with the value of the program.
Just because a program is a lot of money does not mean that it has more value than a less expensive program.
Case in point: One of our students spent $12,000 with a “real estate mentor” and was frustrated because it was like he was spinning his wheels.
He ordered our course for the special price of $97 and within 4 weeks was closing deals on his first 2 properties!
Remember this and remember it well… The value a real estate course or training program has nothing to do with the price!
Just because it is expensive does not make it automatically better than a more affordable course.
The value is only determined by the impact the course or training program has on that person!
This is absolutely critical!
Truly caring for your success! TC and Vickie Bradley http://www.tcandvickiebradley.com
About the Author
TC and Vickie Bradley are authors of the #1 best selling course “Buy With No Credit, How to make money this month in Real Estate”.
It has maintained a #1 ranking in Real Estate at one of the Internet’s most trusted and respected web sites since it was released in April of 2003.
This dynamic and caring couple has a passion to assist others in walking into the greatness that is already within them!
3 Good Reasons Why You Should use an Attorney for Your Real Estate Investing
February 19, 2010 by Kenny Santos
Filed under Real Estate Investing
Skimping on attorney fees could cost you more than you bargained for when investing in real estate. New real estate investors often save money on their rehabs by cutting corners, doing work themselves and trying not to spend any money to make money. When it comes to having a good real estate attorney though be prepared to spend away.
You have to ask yourselves what you are willing to pay for a piece of mind especially if you deal with tenants. A few good contracts written up by your attorney will easily be worth it after your first eviction or foreclosure.
You can find hundreds of template contracts and real estate forms on the Internet, but just how legal are they? Ask yourselves why they almost always recommend you have your own attorney look them over anyway.
There are hundreds of reasons to use a real estate attorney in your wealth building, but here are my three favorites:
Title opinions. In some states you are required to buy title insurance to guarantee the marketability of your property. In others it is recommended to get a title opinion. A title opinion is the opinion of an Attorney regarding the merchantability of title based upon the title examination and commonly is written to a lending institution who will rely on this title opinion for the validity and ranking of its mortgage. This process could get pretty complex especially when dealing with vacant, bank owned and estate property.
Tenant Forms. If you have rental units it is imperative that you have a real estate attorney look over your documents to make sure that the language is specific to your situation and state. Tenant law in Iowa may not be the same as tenant law in Nevada. Trust me, if any wording is wrong in your 3-day notice or eviction paper work the magistrate or judge will spout out some state statute, your tenant will get to stay and you will have to start all over.
Leads. Attorneys can be a great source for leads. Motivated sellers often come from extenuating circumstances like divorces, bankruptcies and estates. If you have a good relationship with a real estate attorney perhaps you can help his clients out when they find themselves in situations like any of the above.
If you are new to real estate investing a real estate attorney should be on your team anyway, if you don’t have one yet be sure to find one fast. Your realtor or banker should be able to recommend a good one for you.
About the Author
Robb Beltran is an active real estate investor and publisher of the Real Estate Info Network. The Real Estate Info Network promotes real estate education through real estate seminars, e-books and real estate investing courses. www.realestateinfonetwork.com www.belstarproperties.com
Using Direct Mail Marketing Campaign For Your Real Estate Investing Business
February 7, 2010 by Kenny Santos
Filed under Real Estate Investing
In this ever-growing world of marketing and advertising opportunities many people have begun to let go of the ?old world? techniques, direct mailing and the like. For this reason, and many others, it is necessary for you to jump in to the world of direct mail marketing to get the very best for your advertising dollar. Don?t let the same old things creep into your mind when this pops in there! Don?t believe that it is a waste of time or a shot in the dark, this can really work if you give it a solid try.
One of the very important concepts to remember when you begin a direct mail marketing campaign is that it is imperative to pay attention to the wording of your direct mailer. Don?t simply make some huge advertisement about buying someone?s house because of foreclosure etcetera, tell them in more compassionate ways that you can make their life easier. They already feel strange, embarrassed, or even a little ashamed of their financial situation, you can get a good step in with them by offering to ?take it off of their hands? and take over payments ?Quickly?.
Make sure that you are pre-qualifying or sending to an area where you can make no money. It isn?t worth your time or theirs if you send them information about helping them out of their financial hardships only to let them down in the end. Make sure that you are sending to the right people for that reason and this, by getting in front of the right people you are increasing the opportunity of catching their attention and getting that all-important phone call in response!
In the end it is unbelievably important that you look at this as an opportunity to invest in the future of your real estate investing business rather than just a simple expense for the present. At the very least you are beginning to register your name in the heads of thousands of prospective buyers and sellers, if it isn?t this time that it works it will be next time. Be persistent and it will indeed pay off in the end!
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For more information on becoming a successful commercial real estate investor try visiting http://www.successful-real-estate-investing-tips.info, a popular website that provides real estate investing tips, advice and resources to include information on how to profit from forclosures and flipping houses. |
Real Estate Investing Scare
February 4, 2010 by Kenny Santos
Filed under Real Estate Investing
Just recently, I was consulting a former Real Estate Investor that was in a serious situation that would scare anyone. This investor has twenty-eight properties that he’s personally purchased using bank financing over the last 4 years.
Here’s the typical deal this investor would purchase: The house would have an appraised value of $50,000 and he was able to purchase the property for $30,000.
The bank would then loan him 80% of appraisal regardless what he paid for the property allowing him to cash money out at closing when buying.
OK, follow me so far? So, in this example, he’d pocket $10,000 when he bought the property.
So, you’re thinking - that’s not scary.
Not yet anyway…
Back to the story, he calls to see if I can help by buying the properties from him. I told him I would gladly take a look to see if there was something I could do, but I assured him I couldn’t make any promises.
After, I talk with him a little more, I discover he’s 3 months behind on payments on ALL 28 properties. With all 28 properties, one would need to come up with close to $20K just to reinstate these loans.
But, that’s not the scary part. We still have to see if there’s any equity. And unfortunately, there’s not, therefore I tell him I can’t do anything for him. He’s gonna see 28 houses go to the foreclosure block. Not only will the bank foreclose, they’ll drag his name through the paper causing humiliation, disgrace with his family and his church. The bank doesn’t just foreclose, then go away. They’re gonna stay after him till they get paid. If the bank takes a loss on these properties, which they will, the bank will pursue the following options:
1. Deficiency Judgment:
This will attach to anything this homeowner owns (real estate, cars, boats, motorcycles, etc.) till the debt is paid. Judgments are usually good for a set amount of time. In Alabama, the company has 10 years they can pursue the homeowner to get paid on the judgment. Plus, you should be aware that these judgments then can be renewed after they’ve lapsed.
It’s pretty terrifying to say the least to have some attorney harassing you to collect on a debt.
2. Garnish Wages
After a judgment has been attained, the creditor can and will garnish any wages from the borrower’s pay.
3. Forgive The Debt
Maybe, you think the borrower would love for the bank to just forgive the debt. Even though they forgive the debt, they don’t forget. Because at the end of year they’ll send the borrower a 1099 for unearned income from the loss of the sale of the property they’d loan money on.
Finally, the obvious factor of having a foreclosure is the fact it shows on your credit rating, thus ruining your credit.
Why did I just tell you this information about this particular owner?
I want you to be able to make sellers aware that are in similar situations of exactly what they can expect. See, most investors expect a homeowner to make some logical decision during a totally emotional time like a foreclosure proceeding. Most owners react out of fear, thus making the wrong choice, which is doing nothing but watching the sheriff show up to finalize the eviction after the house has been foreclosed.
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Derek Pierce is a full time real estate investor and business owner. He got his start investing in real estate when he bought his first property in September of 2000. After this first deal, Derek literally became obsessed with Real Estate Investing. After being faced with the possibility of being downsized in 2001, he quit his job to be full time in the business and hasn’t looked back since. Now, he reveals the no down payment real estate techniques he swears by in his Free Real Estate Investing “E Coaching Program.” To sign up for the Free E-coaching program, go to http://www.thereisecrets.com |
Power of Relationships for Real Estate Investing
January 9, 2010 by Kenny Santos
Filed under Real Estate Investing
Let’s talk about relationships and how they affect your bottom line as a real estate investor.
You’ve heard it time and time again: build relationships. Well I hate to sound like a broken record, but I’m going tell you again - Relationships is a key component to your bottom line as an investor.
Let me tell you a story about a deal I did a couple of years ago to help emphasize my point.
There was this gorgeous property located in a fairly elaborate subdivision called Heathrow. Most of the homes are pretty new and are all brick with very nice amenities. The property was a large 3-bedroom brick 2-1/2 bath.
I saw the foreclosure notice in the newspaper, so I immediately start calling some of the family to make a deal on this property. I get in touch with a lady lets call Susan for the sake of privacy. Susan and her husband had built the home around five years earlier. The house was vacant and had been vacant for months. I discovered after talking with her, that Susan and her husband had a very rocky marriage and were now divorced. She was doing all she could as a single Mom to make ends meet. Her ex-husband had a medical discharge from the military from a rare disease that left him paralyzed. Susan was ready to move forward. She’d been through an ugly divorce, a bankruptcy, and now was going through a foreclosure. It was really tough on her. Now, her ex-husband had already moved to Washington and was re-married.
Here are the numbers on the deal:
Value: $165K Owed amount on mortgage: $100K Behind: $10K
I dealt with what seemed like every family member that could have had any possible interest in this deal and tried to get this deal sealed up, but to no avail. Susan, the ex-wife had already signed her interest over to me. However, the ex-husband that lived in Washington kept stonewalling my efforts and wasn’t willing to deal. Then, I get this phone call two days before the auction. No kidding, it was 2 days away, and now all of a sudden the husband wants to deal. With only two days before the foreclosure auction, I can get a deal done if the people are in my area so that I can meet with them. I’ve done it numerous times before. But when you add the fact that this guy was on the other side of the country, it makes it almost impossible. That is, unless I happen to know someone in Washington….
See, I happened to meet a guy named John at a seminar several months beforehand and we became friends. We emailed and talked on a regular basis about how to improve our businesses. So, I called him and asked him for a favor and told him I’d make it worth his while. And so, John agrees and gets the deed signed later that night and sends the docs overnight via FedEx to me. I reinstate their loan 1 hour before the foreclosure sale and the deal is complete. Whew…. Take a Deep Breath - right?
Now, after the deal closed I sent John $2K for his troubles. Anyway, my point is this deal would’ve never happened if I’d not built a friendship with John. And notice that I just didn’t call him out of the blue asking for this favor. We were already friends and had already established this friendship months before. The moral to the story is to use the Golden Rule in all circumstances. I’d never thought in my wildest dreams that John could’ve helped me in Alabama. And the truth is that there’ve been more people to help me because I go out of my way to build relationships with others.
The simplest way to accomplish this is to treat everyone with the utmost respect even if there’s no financial gain for you. Work to build win-win relationships with everyone you touch - the local locksmith, the banker, the moving company, the loss mitigation rep you called to get a short sale approved, and the local real estate agents. You never know when some of these professionals have the ability to direct you to the next hot deal for you to acquire.
About the Author
Derek Pierce, full time Real Estate Investor, shows
you the exact strategies to his success in his Free Book: “How I
Went From Corporate Guinea Pig To Real Estate Success”. Get
your copy and Real Estate Investing Tips by going to http://www.thereisecrets.com
Scottsdale, Arizona Real Estate Investing
December 20, 2009 by Kenny Santos
Filed under Real Estate Investing
There are several factors to consider when thinking about investing in Arizona Real Estate. Is this a short term or a long term investment? Is this going to be a rental property or a personal residence? Is this going to be a vacation home? Before jumping into an investment property, it may be a good idea to ask your self what type of investment is going to fit your needs.
The days of flipping houses have seem to come to a screeching halt in Arizona. A little over a year ago this was extremely common because there were too many buyers, and not enough sellers. The inventory was very slim. Now, the inventory has seemed to increase, not enough buyers and too many sellers. Obviously, when this happens prices drop.
There is no way to predict future market conditions, but now may be a good time to start purchasing property in Arizona. The sellers are giving extraordinary incentives and the interest rates are relatively low. To make an informed decision, some might think to take a look at what is happening around them.
The price of homes have been dropping, that is not a secret. When the prices of homes start dropping, this may be an indication of a market fluctuation. When the market fluctuates it is a good time to be in the right place at the right time. Many lenders have gone out of business because there is such a high foreclosure rate. It is becoming harder and harder for people with marginal credit ratings to obtain a loan. This may be an indication that the rental market is about to get stronger.
When lenders start going out of business, and the remaining lenders tighten up their criteria, not as many people can qualify to purchase a home. People have to live somewhere, so their only other option is to rent.
When investing in Arizona Real Estate, it is important to analyze the rental market of the area you may be thinking about purchasing. It is also very important to know what your payments are going to be and how much you need to put down in order to have even or positive cash flow. If you are going to purchase a home to rent out, make sure that your payments are close to what the rental rates are in the area. To find out what the rental rates are you can ask a qualified Realtor to tell you what is currently on the market for rent in the area, and what has recently rented out. Basically, you are doing a comparative market analysis on the rental market in the area you are thinking about buying. Most qualified Real Estate professionals can help you with this.
It is extremely important to find a Realtor to represent your best interests when investing in Arizona. The difference between a good Realtor and a bad Realtor could cost you thousands of dollars. Make sure your Real Estate professional is experienced, educated, and knowledgeable of the area you are thinking about buying in. Above all, make sure your agent is aggressive.
In order to get the best price possible with the current market conditions, it is imperative to start extremely low regarding an offer to purchase. Rarely is the sticker price the purchase price. A good Realtor that is representing an investor may see a home for three hundred thousand dollars, offer two hundred and fifty thousand, and have the seller pay for all of the investors closing costs. Will the seller except this contract? There is no way to know for sure. All the seller wants to know is how much money they are walking away with in most cases. If the seller will have to pay to close escrow the contract will probably not fly. It is always a great idea to find out how much the seller owes before writing an offer on any home by having your Realtor look at the tax records. This way, you know how much flexibility you have. A desperate seller with an enormous amount of equity may have some opportunity.
Make sure when you are investing in Real Estate in Arizona, you have proper representation, you do your homework with your agent, and know that there is risk involved. Like any investment, there is risk involved. There is no way to determine future market conditions. Real Estate markets are cyclical. What goes up may very well come down. It is better to have an honest Realtor that tells you the truth versus a Realtor fluffing the truth that may cost you a lot of money. If you need a good, honest, hard working aggressive Realtor to help you with any and all of your Arizona Real Estate needs, please click on the link below to visit an extremely helpful website to get you in contact with a professional Realtor in Arizona.
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Nick McConnell Executive Sales Associate for Coldwell Banker Residential Brokerage in Scottsdale, Arizona. Lived in Arizona all his life, Graduated from Northern Arizona State University and has been a Realtor ever since. |