Real Estate Investing Tip - Three Things That You Need To Know To Succeed

Three things that you need to know to succeed

Are you new to the world of real estate investing? There are many key points involved in real estate investment that can help you make your deals more profitable. Real estate investing is all about facing the challenges and pitfalls you may encounter along the ways. If you are new to this venture there is definitely a lot to learn. Once you have groomed yourself and have gained some experience, you can become the master of the art and can surely make more profits.

Here are some useful Real estate investing tips

1. Selecting a right location:

Selecting a right location is very important to achieve success in your real estate investment deals. The better the location, the better the chances that the value of your property will increase over time. It would be advisable to select a location where the demand for the property is high and the property prices are always rising. You need to consider many prospects before selecting a location for your real estate. One of the key points you have to consider is about the major developments that are planned for the area in the future.

2. Pay Market Value:

Never pay more for a property than what it is worth. It is very important to access the market value of a property before you actually consider buying it. Buying a property in a good location can be a good option as you can expect the value to double every 7 to 10 years. You can also ask an agent on information on price growth in a suburb.

3. Attracting tenants:

One of the most important point you need to consider while buying a property is whether it will attract tenants or not. It would be advisable to buy a property in an attractive location where other people wants to live as tenants. You need to put yourself in the tenant’s position as to what they will consider buying from you. You need to work out on certain points to attract tenants this includes good access to transportation, education facilities, health, community facilities and adequate parking.

Copyright ? 2006 Joel Teo. All rights reserved.

About the Author

Joel Teo writes on arizona estate goodyear investment real . Learn more about Property Investment by signing up for his free Property Investment Ezine

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 Tip - Three Things That You Need To Know To Succeed

Three things that you need to know to succeed

Are you new to the world of real estate investing? There are many key points involved in real estate investment that can help you make your deals more profitable. Real estate investing is all about facing the challenges and pitfalls you may encounter along the ways. If you are new to this venture there is definitely a lot to learn. Once you have groomed yourself and have gained some experience, you can become the master of the art and can surely make more profits.

Here are some useful Real estate investing tips

1. Selecting a right location:

Selecting a right location is very important to achieve success in your real estate investment deals. The better the location, the better the chances that the value of your property will increase over time. It would be advisable to select a location where the demand for the property is high and the property prices are always rising. You need to consider many prospects before selecting a location for your real estate. One of the key points you have to consider is about the major developments that are planned for the area in the future.

2. Pay Market Value:

Never pay more for a property than what it is worth. It is very important to access the market value of a property before you actually consider buying it. Buying a property in a good location can be a good option as you can expect the value to double every 7 to 10 years. You can also ask an agent on information on price growth in a suburb.

3. Attracting tenants:

One of the most important point you need to consider while buying a property is whether it will attract tenants or not. It would be advisable to buy a property in an attractive location where other people wants to live as tenants. You need to put yourself in the tenant’s position as to what they will consider buying from you. You need to work out on certain points to attract tenants this includes good access to transportation, education facilities, health, community facilities and adequate parking.

Copyright ? 2006 Joel Teo. All rights reserved.

About the Author

Joel Teo writes on arizona estate goodyear investment real . Learn more about Property Investment by signing up for his free Property Investment Ezine

Real Estate Investing Tip - Three Things That You Need To Know To Succeed

Three things that you need to know to succeed

Are you new to the world of real estate investing? There are many key points involved in real estate investment that can help you make your deals more profitable. Real estate investing is all about facing the challenges and pitfalls you may encounter along the ways. If you are new to this venture there is definitely a lot to learn. Once you have groomed yourself and have gained some experience, you can become the master of the art and can surely make more profits.

Here are some useful Real estate investing tips

1. Selecting a right location:

Selecting a right location is very important to achieve success in your real estate investment deals. The better the location, the better the chances that the value of your property will increase over time. It would be advisable to select a location where the demand for the property is high and the property prices are always rising. You need to consider many prospects before selecting a location for your real estate. One of the key points you have to consider is about the major developments that are planned for the area in the future.

2. Pay Market Value:

Never pay more for a property than what it is worth. It is very important to access the market value of a property before you actually consider buying it. Buying a property in a good location can be a good option as you can expect the value to double every 7 to 10 years. You can also ask an agent on information on price growth in a suburb.

3. Attracting tenants:

One of the most important point you need to consider while buying a property is whether it will attract tenants or not. It would be advisable to buy a property in an attractive location where other people wants to live as tenants. You need to put yourself in the tenant’s position as to what they will consider buying from you. You need to work out on certain points to attract tenants this includes good access to transportation, education facilities, health, community facilities and adequate parking.

Copyright ? 2006 Joel Teo. All rights reserved.

About the Author

Joel Teo writes on arizona estate goodyear investment real . Learn more about Property Investment by signing up for his free Property Investment Ezine

Some Important Points To Know About Real Estate Investing: Contract Clauses

Real estate investing: contract clauses’ is an important topic to learn for real estate investors, because if you do not know the essentials of the clauses then your contract will not produce desirable results when presented before a listed broker. This is why what you learn from home study course is not very useful because it teaches you seminar type of drafting. Instead, real estate brokers like use of standard agreement because it is more in the favor of brokers rather than you. However, here you need to use your skills to change the standard format of agreement so that you are not at the disadvantage.

For the property buyers, here is some important real estate investing: contract clauses.

?And/or Nominees? or ?And/or Assigns?:

If you put the word “And/or assigns” with your name, you will get the right of assigning your contract, which as a buyer you would always wish to have. However, the word “And/or nominees” is not as wide, yet it allows you to assign the title to any trust. One important point to remember here is that the real estate investing: contract clauses must not have any anti assignment provision. If there is any such clause, then you must cross it out.

Inspection Clause:

You must make it sure that you can perform a thorough inspection before a stipulated date and no professional inspector is needed for the purpose. If after inspection you find that the things are not in shape and the seller is neither interested in fixing problems nor he is ready for price reduction, then you should have the liberty of canceling the contract.

Right to Extend:

Most of the real estate investing: contract clauses have a definite date for closing. Any delay can make you defaulter. To avoid this kind of situation add clauses like “on or about June 1st”. Nobody is sure about its meaning. However, one thing is sure that it gives you a little extra time. Alternatively, you can include an extension clause for 30 days by paying mortgage amount of one month to the seller.

Qualification of Buyer:

If you do not want to waste your time, then never believe in the claims made by the buyer regarding loan qualifications. It will be your biggest mistake in real estate investing: contract clauses, if you tie up the property with any unqualified buyer. Instead, you yourself must possess all relevant information regarding loans so that you infer whether the buyer will qualify or not. Mention specifically in the contract clauses that the seller can terminate the contract if buyer is unable to produce the required documents within 48 or 72 hours.

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!

Real Estate Investing Tip - Three Things That You Need To Know To Succeed

Three things that you need to know to succeed

Are you new to the world of real estate investing? There are many key points involved in real estate investment that can help you make your deals more profitable. Real estate investing is all about facing the challenges and pitfalls you may encounter along the ways. If you are new to this venture there is definitely a lot to learn. Once you have groomed yourself and have gained some experience, you can become the master of the art and can surely make more profits.

Here are some useful Real estate investing tips

1. Selecting a right location:

Selecting a right location is very important to achieve success in your real estate investment deals. The better the location, the better the chances that the value of your property will increase over time. It would be advisable to select a location where the demand for the property is high and the property prices are always rising. You need to consider many prospects before selecting a location for your real estate. One of the key points you have to consider is about the major developments that are planned for the area in the future.

2. Pay Market Value:

Never pay more for a property than what it is worth. It is very important to access the market value of a property before you actually consider buying it. Buying a property in a good location can be a good option as you can expect the value to double every 7 to 10 years. You can also ask an agent on information on price growth in a suburb.

3. Attracting tenants:

One of the most important point you need to consider while buying a property is whether it will attract tenants or not. It would be advisable to buy a property in an attractive location where other people wants to live as tenants. You need to put yourself in the tenant’s position as to what they will consider buying from you. You need to work out on certain points to attract tenants this includes good access to transportation, education facilities, health, community facilities and adequate parking.

Copyright ? 2006 Joel Teo. All rights reserved.

About the Author

Joel Teo writes on arizona estate goodyear investment real . Learn more about Property Investment by signing up for his free Property Investment Ezine

Real Estate Investing Tip - Three Things That You Need To Know To Succeed

Three things that you need to know to succeed

Are you new to the world of real estate investing? There are many key points involved in real estate investment that can help you make your deals more profitable. Real estate investing is all about facing the challenges and pitfalls you may encounter along the ways. If you are new to this venture there is definitely a lot to learn. Once you have groomed yourself and have gained some experience, you can become the master of the art and can surely make more profits.

Here are some useful Real estate investing tips

1. Selecting a right location:

Selecting a right location is very important to achieve success in your real estate investment deals. The better the location, the better the chances that the value of your property will increase over time. It would be advisable to select a location where the demand for the property is high and the property prices are always rising. You need to consider many prospects before selecting a location for your real estate. One of the key points you have to consider is about the major developments that are planned for the area in the future.

2. Pay Market Value:

Never pay more for a property than what it is worth. It is very important to access the market value of a property before you actually consider buying it. Buying a property in a good location can be a good option as you can expect the value to double every 7 to 10 years. You can also ask an agent on information on price growth in a suburb.

3. Attracting tenants:

One of the most important point you need to consider while buying a property is whether it will attract tenants or not. It would be advisable to buy a property in an attractive location where other people wants to live as tenants. You need to put yourself in the tenant’s position as to what they will consider buying from you. You need to work out on certain points to attract tenants this includes good access to transportation, education facilities, health, community facilities and adequate parking.

Copyright ? 2006 Joel Teo. All rights reserved.

About the Author

Joel Teo writes on arizona estate goodyear investment real . Learn more about Property Investment by signing up for his free Property Investment Ezine

Real Estate Investing - Finding And Working With The Right Realtor

My Realtor isn’t speaking to me. No, I don’t think I’ve done anything to offend him, but he probably wouldn’t tell me if I had. I am pretty sure I don’t owe him any money either. And before you ask, he does have the ability to speak. He just doesn’t have the desire. So what’s the problem, you ask?

The truth is there is no problem, because my Realtor never speaks to me. Well, perhaps “never” is the wrong word. Rarely is more like it. He just happens to be a man of few words, and our communication (if you can call it that) almost never exceeds 15 words total.

For example, my cell phone rang yesterday and I saw it was my Realtor.

Me: “Hello.”

Him: “Hi. Did you get the key?”

Me: “Yup.”

Him: “O.K., bye.”

Me: “Bye.”

What’s that, like, eleven words, twelve if you count “O.K.” as two, which is a stretch? The thing is, we both like it that way. This is one of the main reasons I choose to work with him. We both share the idea that business communication doesn’t have to be filled up with a lot of small talk or chit chat. We both feel like we get more done that way.

I’m not saying this is the only right way, but it is my way, and that’s one of the things I look for in my team members, especially my Realtor. It also illustrates an important point about choosing a Realtor to help you in your Real Estate Investing business. Choose someone you will enjoy working with, and who will complement the way you operate.

If I tried to work with a “Chatty Cathy” or “Gregarious Greg” it wouldn’t last for long. We would drive each other nuts. Life is too short for that. So I look for people who have a style similar to my own. I recommend that you do the same.

What Makes A Great Investor’s Realtor?

Here are a few other things to consider when looking for a Realtor.

One. What type of Real Estate do they specialize in? You are looking for a Realtor with a lot of experience working with investors and investment property, not primarily residential homebuyers. You and I, as investors, have vastly different priorities and concerns than people looking for a place to live. Your Realtor needs to thoroughly understand the difference. Some Realtors don’t enjoy working with investors. Mine does, and yours had better.

Two. Do they handle a lot of foreclosure listings? In many areas, the majority of the foreclosure listings are handled by just one or two offices. That’s the case in my town, and my Realtor works for one of those offices. His agency handles about 45% of all the foreclosures in my city.

I’m sure you can guess what that means! Not only do I see those listings first, but I get all kinds of insider information and tips when I place my offers. Not illegal or unethical information, but market insights and competitive intelligence that I wouldn’t get from anyone else, because they aren’t in a position to know. Often, this has made the difference between getting a deal and missing out.

But How Do I Find One?

Start by looking for the one or two agencies in your area that handle the most foreclosures, and then meet and talk to the Realtors in that office. You’ll quickly find the agents that know and enjoy Investment Real Estate. From there it’s just a matter of getting to know the one who will be able to work with you, and who will give you what you need.

It’s important to remember that you have a part to play in the success of your relationship. Even though you’re the customer, any Realtor with the experience you’re looking for will also expect a few things from you, and you should be prepared. During the interview process, be sure to let the Realtor know that you will be willing to do a few thing that will make his or her life easier.

The first thing is respect, especially for his or her time. These are busy professionals, and they simply do not have time to hold your hand and drag you all over town looking at property. After all, you’re going to be looking at a lot of houses, but buying only a small percentage of them. So tell your Realtor right upfront that you won’t expect them to take you through each and every house.

All you really need them to do is provide you with the listings in your target neighborhoods, get you access to houses occasionally that you can’t get into on your own, pull comps, and submit your offers. Once they understand this, most Realtors who know Investment Real Estate will be happy to work with you.

The second thing you should do is make sure your Realtor gets paid. You may be thinking, what about the commissions? Well, often in my investing business I am looking at tons of houses but not finding anything to buy. It seems to go in streaks. Even when I’m not buying, my Realtor is still doing the same amount of work for me, but getting nothing in return. To keep him happy, I will hand him a check every now and then. Nothing major, just a token to let him know I appreciate his efforts.

I’ve been laughed at by other investors because I do this. Maybe they think I’m a sucker- I’m not sure. One thing I am sure of is that my Realtor has a very few investors at the top of his mind when a really good deal becomes available. Can you guess who one of those few people is? If you want to be remembered for all the right reasons, show your Realtor- and all of your valued team members- a little tangible appreciation from time to time

Speaking of appreciation, you should personally demonstrate yours to your Realtor at least once a year. Why not take him or her and their spouse out for a nice meal? No, I don’t mean a Chicken Wrap down at the Sonic. I mean you should really spring for a nice meal at a fine restaurant. Spend a couple of hundred bucks, and don’t skimp on the wine and dessert. Let them know that what they do for you all year matters, and you consider them a very valuable resource. Trust me, they will never forget.

Third, and in my mind most important, you should follow through on all your commitments. Tell the Realtor that you won’t make offers on properties if you don’t fully intend to close- no matter what! I know investors that get offers accepted all the time, thinking to themselves, ‘If I have to back out, it’s no big deal.’ It may be no big deal to them, but to the Realtor, and other parties to the transaction, it’s a very big deal. These folks have long memories, and they don’t soon forget someone who chronically wastes their time. Apart from the purely ethical considerations, you should follow though on every commitment you make. After all, it’s your reputation on the line. At the end of the day, your reputation is really all you’ve got, isn’t it?

Now that you know what to look for in a Realtor, and how to go about finding one, I’ll expect to hear from you soon. Share your stories with me and I’ll choose the best to create a new DealFile, featuring you!

Now, go make more offers!

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