Real Estate Investing: Selecting A Leasing Agent

Lack of time and the increasing pace of life, has been ruling the modern times. Shortcuts seem much more appropriate and longer paths though much safer and more reliable do not solve the purpose. Slow and steady now lags behind the speedier. The same principle has been governing the real estate investing business, which is now controlled by faster intermediaries. These intermediaries referred to as leasing agents act as a bridge between the owner and the tenant. Leasing agents backed by adequate market knowledge and continual up gradation with the latest trends, enable much faster deals than otherwise possible. The concerned parties owing to the less strenuous research and faster turn around time are in a much convenient slot and therefore are accustomed to the easy requirements.

However, an important concern to be addressed in such real estate investment decisions is identifying the right leasing agent who can be your perfect representative. When operating through an agent, the bargain relies heavily on the agent?s knowledge and trust. Make sure that you agent is not the other party?s agent is disguise. Selecting and employing the right agent can curb all investment concerns however a wrong selection in this regards can tie you up with not only a bad bargain but a problematic location, which would adversely affect in the long run.

Hiring a Leasing Agent: Things to Consider There are various aspects to be considered while recruiting a leasing agent. Few important tips and caution statements before hiring one are outlined below:

Define The Role: Before hiring a leasing agent, be clear with what are your expectations with the agent. Do you expect him to drive you to all the locations of interest or show you the ones listed with him. Who handles the paperwork? What stage do you intend to meet up with client directly? Make sure to answer these questions before taking the decision. Check Out Before Hiring: Make sure that you know an agent?s reputation before hiring him. Check out his past to get a taste of the deals done before. It is advised to seek for reference or hire through referrals. Other landlords could serve as a database in these regards. A more experienced agent can certainly get you a better deal.

Pricing Concerns: Before hiring, make sure to be into clear understanding regarding the payment terms and modes to avoid any such issue sat a later stage. Establish An Understanding: To get the best it is essential to ensure that your agent understands your requirements. Make sure that the two of you are on a clear footing and share a common platform while making any real estate investment decision. Legal Requirements: Check out for adequate licenses and requisite education qualifications.

A leasing agent can act as a magical wand in striking the right deal, however it is better to undertake the initial search in hiring an apt leasing agent rather than cribbing later.

Why Use Private Money For Real Estate Investing?

There are many reasons a real estate investor might want to have a ready access to private money for real estate investing. This article will explore a few of those reasons.

The first reason to use private money for real estate investing is to protect your credit rating. Think about this… if you borrow the money from a private individual, rather than a bank or lending institution, the loan will never be reported to the credit bureau. It won’t count against your debt-to-income ratio, and no record of the payment history will be kept. No one will ever know about that loan, unless you tell them.

Next, and one of the very best reasons to use private money for real estate investing, is the elimination of paperwork. I have never had to complete a loan application for private money for real estate investing. The lenders I work with all know me and the kind of investing I do. Many of them never even care to see the property. When I apply for a mortgage, on the other hand, the application process itself can take several days, and there are mountains of paper.

Yet another reason to use private money for real estate investing is the ready access to fast cash. Sometimes, when a deal is especially good, moving super-fast is a necessity. With bank financing, that kind of speed is often impossible. Even lines of credit don’t always give you the same speed capability that private lenders do. With one phone call to one of my private lenders, I can tie up a deal that other investors only dream about.

A great reason to use private money for real estate investing is the leverage that it gives you. Think about this… if you have $50,000 of your own money, is it better to pay all cash for a $50,000 property, or to put $50,000 cash down on a $500,000 property and use private lenders to finance the rest?

If you answered the $500,000 property, you’re right- and here’s why. Let’s say the $50,000 property rents for $500 per month, or $6,000 per year. Your Return On Investment (ROI would be 12% the first year ($6,000 divided by $50,000). It’s safe to assume the rent on the $500,000 property might be about 10 times that of the $50,000 property, or about $60,000 for the year. If your payback to your lender totals $4,000 per month, or $48,000 per year, what’s your Return On Investment (ROI) for the $500,000 property? If you answered 24%, give yourself a gold star!

Of course, you would need to take into account the cost of borrowing the money, but even after doing that, you can see there really is no comparison. Using private money for real estate investing gives you something called leverage. Leverage is the ability to move something very large with something very small… a lever. The lever, in this case, is your small amount of cash ($50,000). With it, you can “move” or control a $500,000 property, because the private lender’s money increases the power of your “lever”.

Here I’ve given you a few of the many great reasons for using private money for real estate investing. There are more, but you should have a clear picture of why private money can be so useful in your real estate investing toolkit. If you would like more information, I have written another article on my website titled Private Money For Real Estate Investing.

Now, go make more offers!

Real estate investing does not have to be complicated!

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!

Real Estate Investing - Ten Myths

Is real estate investing only for the wealthy? Can you buy with no money down? Do you have to know the “right” people? Let’s answer by looking at some of the myths of real estate.

1. Real estate investing is for the wealthy. Money helps, but my first real estate investment was a $3,500 lot - which I sold for a profit two weeks after I bought it. Small deals, partners, low-down deals, or just putting aside $7 per day for a couple years until you have enough money for a downpayment - these are some of the ways to start with a little and invest in real estate.

2. “0 down” isn’t possible. I sold a rental property for $1,000 down because I trusted the buyer to make the payments, and I wanted the 9% interest and higher price. He could have gotten a cash-advance on a credit card for another $30 per month and made it a “0-down” deal. “No money down” means none of YOUR money down, and yes, it happens.

3. “0 down” is the best way. If you don’t invest some of your own money, you’ll have higher payments. You’ll also spend more time finding suitable properties, and pay more for them (generally cooperative sellers want more for their cooperation - I do). There are 0-down deals out there - they just aren’t always worth doing.

3. You need experience. Experience helps, but you get it by investing. Start with common sense, ask how you can lose money, be willing to learn the numbers, and you can start where you are.

4. Some investors have a “knack” for making money. Sort of. More accurately, some just took the time and risk to learn the market and continue their education.

5. You need to know the “right” people. It helps, so start the process. Talk to investors, real estate agents, landlords, etc.

6. You have to be great negotiator. If you learn to run the numbers and make the offers based on them, you can be the worst negotiator and still do okay.

8. You need insider knowledge. Understand one deal, and you are on your way. Read and read more, but the best “insider” knowledge comes from experience.

9. Fixer-uppers are safe. People have the idea that doing the work themselves is the safest way to assure a profit. Not true. Mis-planned “fix and flips” have bankrupted even experienced investors. Most poorly purchased rental properties will only eat a little money every month.

10. The key is lowball offers. The numbers have to work, and you need a plan. You can offer MORE than the market price and make money investing in real estate, if you understand creative financing - and how to do the math.

About the author:

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

Knowledge is the Key to a Successful Real Estate Investing

A lot of people are looking for ways to have additional income.

For many years, real estate has been a well known investment. Most of the millionaires out there made their first million dollars in entering into real estate. Indeed, even celebrities are venturing out into real estate investing. They believe that a big way of money making is through real estate investing.

Yes, real estate investing can be as all what it is in the television and celebrities program, they say it is, but investing in real estate is not that easy. Investing in real estate requires a lot such as buying, selling, negotiating and repairing a property or home. So knowledge in this field of business is very important. Someone who wants to go into real estate investing must has the necessary knowledge in this kind of business. Certainly, you do not want to put your money into waste, if something goes wrong. Proper education in this field should be taken into consideration.

Indeed, everyone can enter the world of real estate; anyone can invest in real estate if they desire to invest. All of them can also be successful in real estate investing, provided that they have gain the proper knowledge in real estate investing. Actually, it is possible that anyone can learn on how to invest in real estate.

Anyone can learn about real estate investing, anyone who considers purchasing a property as an investment, provided that they are educated with this field before doing the buying. There are a lot of strategies and techniques that real estate investors have tried everyday such as rentals, foreclosure, lease options and so on. Certainly, those real estate investors who gave their time to learn and educate themselves will be successful in this type of business.

If you are planning to buy property then sell it on your own, without working with an agent, would be risky in having financial loss, if you do not educate yourself first before entering into such field.

There are lots of ways to gain knowledge about real estate investing. One way is by purchasing books to get several advices and guidelines. Another way is through the internet, there are a lot of websites that cater about real estate investing. There are websites that can give you explanation, trainings, education on different topics in real estate investing.

You can also find some mentors online to give you advices and guidelines about real estate investing. Nowadays, there are also some universities that teach real estate investing.

Absolutely, real estate investing is a profitable business. But of course, you do not have to enter into such business just that, you have to gain the valuable knowledge needed in this type of business, in order not to fail. It would be too risky in your part, if you enter into real estate investing without the necessary knowledge; you do not have the immediate techniques and strategies in handling some problems. So a proper education is a must in venturing out to real estate investing.

Indeed, knowledge is the key to be successful in real estate investing. So if you are planning to venture out to such business, start gaining the necessary knowledge you?ll need in investing at real estate.

Beginning Real Estate Investing - Working The Numbers

One of the first skills you should develop as you are beginning real estate investing is analyzing a deal by looking at the numbers. Depending on the type of investing you want to do, the process can be more or less complicated. If you want to buy and sell single family houses- otherwise known as ?flipping?- There are some basic calculations you should know.

Formulating your offer should become almost second nature to you, and the only way this can happen is if you look at property? a LOT of property. Before you start looking, create a simple one page worksheet to list the repairs the property needs.

As you walk through the property, list the things that will need to be rehabbed, repaired, or replaced on your worksheet. You will need to learn what things cost to repair in your area. Either learn this yourself, or develop a relationship with a contractor you can trust. You may even want to partner with him on a deal or two while you?re learning.

Once you arrive at a total cost to repair the property, the next step is to determine it?s ?After Repair Value? ? the market value of the house after all the repairs have been made. You do this two ways? by knowing the neighborhood AND by using comparables. Comparables, or comps as they are commonly called, are similar properties in the same neighborhood, that have sold recently. By carefully examining what comparable properties have sold for recently, you can arrive at a safe after repair value (ARV)

Beginning real estate investing can be confusing, but don?t get confused on THIS point. Make sure your comps are truly comparable. If the houses are really different, or in two very different neighborhoods, they?re NOT comparable.

Once you know how much the house should be worth after all repairs are made, and you know how much the repairs will cost, you?re ready to determine how much you can safely offer. Subtract estimated repairs from estimated after repair value (ARV) to arrive at the estimated value of the house as it sits right now. I call this number the Current Market Value (CMV)

Write down your answer, but don?t offer that amount yet. There?s one more step. Subtract $30,000 from the CMV and write down that answer. Now go back and subtract 30% from the CMV and write that answer down. Of your two answers, offer the LOWER number.

Here?s an example. You have estimated repairs on a property at $20,000, and the estimated ARV is $180,000. Subtracting $20,000 from $180,000, we arrive at a Current Market Value (CMV) of $160,000. If I subtract $30,000 from $160,000 I get $130,000, and if I subtract 30% from $160,000 I get $112,000.

The lower of those two numbers, $112,000, will be my offer. I may adjust this upward slightly as the negotiations continue, but at least I have a good starting place. I may miss out on a few deals because I offer too low, but I have never overpaid for a property? a very important concern when you are beginning real estate investing.

Now, go make more offers!

Real Estate Investing - Not A Solo Sport

Real Estate Investing is not a solo sport, but a team effort. It is so important to select your teammates well and constantly evaluate each player’s performance against the overall goal you are working toward.

The scout is the person who helps you locate the deal. This person knows what you are looking for and brings you the deals for evaluation. A scout can be a real estate agent, another investor, a reputable wholesaler or even consistent advertising medium. You should be prepared to compensate your scout and provide incentives to bring you great deals. If they aren’t giving them to you, they are giving them to someone who will compensate them accordingly. Be generous so that you will always be top of mind.

The next team member is an accountant. Your accountant should be someone who specializes in real estate practices. Ideally, they should own real estate themselves. This person helps you take advantage of the tax savings that comes along with buying real estate. We suggest that you interview several. A good accountant will save you much more than their hourly rate, so don’t be intimidated by high fees. They are well worth it if they can do the job properly.

You will need a good real estate attorney. Most people have a closing attorney. Remember that the closing attorney in a transaction works for the mortgage company - not you. You will want an attorney you can depend on to represent your interests. They should be able to advise you with any title issues, assist you with land trust formation, help you with entity selection and provide general council for real estate transactions.

Home inspectors are worth their weight in gold. A good home inspector can help prevent you from purchasing a poor investment, give you a realistic picture of the repairs and give you a general picture of the costs required, as well as alert you to safety concerns. Our home inspector has saved us thousands of dollars by helping us chose not to invest in properties that required more renovation than we had estimated in the deal.

Once you have found a property, financing your real estate investment is the key to a successful real estate career. Helping you determine the best way to finance an investment based on your overall strategy is very important. The majority of the benefit of real estate comes from using leverage. With all the various types of loans available now, you will want a mortgage partner who understands investing, can help you determine which loans are best for a particular piece of property and provides long term strategies that will enhance your credit standing - not hurt it.

As with any team, it takes a while to work together to make sure that you have all the right players. At times, you will find that players need to be traded and sometimes it is good to have alternates.

I encourage all of my investors to interview their teammates in advance. Have a series of questions prepared in advance and determine who you feel most comfortable with. We have found that it takes a couple of plays sometimes before they really understand you and your goals, so be patient. If however, you don’t feel confident with their ability - trade them. This is your future - not theirs.

About the Author

Anne Lackey is a real estate investor in Atlanta and works with The REI Team at Solid Source Realty, Inc. http://www.theREIteam.com. She frequently helps other investors in their pursuit of financial freedom. She is the President of Solid Source Property Management, Inc. http://www.solidsourcepm.com

Real Estate Investing - Not A Solo Sport

Real Estate Investing is not a solo sport, but a team effort. It is so important to select your teammates well and constantly evaluate each player’s performance against the overall goal you are working toward.

The scout is the person who helps you locate the deal. This person knows what you are looking for and brings you the deals for evaluation. A scout can be a real estate agent, another investor, a reputable wholesaler or even consistent advertising medium. You should be prepared to compensate your scout and provide incentives to bring you great deals. If they aren’t giving them to you, they are giving them to someone who will compensate them accordingly. Be generous so that you will always be top of mind.

The next team member is an accountant. Your accountant should be someone who specializes in real estate practices. Ideally, they should own real estate themselves. This person helps you take advantage of the tax savings that comes along with buying real estate. We suggest that you interview several. A good accountant will save you much more than their hourly rate, so don’t be intimidated by high fees. They are well worth it if they can do the job properly.

You will need a good real estate attorney. Most people have a closing attorney. Remember that the closing attorney in a transaction works for the mortgage company - not you. You will want an attorney you can depend on to represent your interests. They should be able to advise you with any title issues, assist you with land trust formation, help you with entity selection and provide general council for real estate transactions.

Home inspectors are worth their weight in gold. A good home inspector can help prevent you from purchasing a poor investment, give you a realistic picture of the repairs and give you a general picture of the costs required, as well as alert you to safety concerns. Our home inspector has saved us thousands of dollars by helping us chose not to invest in properties that required more renovation than we had estimated in the deal.

Once you have found a property, financing your real estate investment is the key to a successful real estate career. Helping you determine the best way to finance an investment based on your overall strategy is very important. The majority of the benefit of real estate comes from using leverage. With all the various types of loans available now, you will want a mortgage partner who understands investing, can help you determine which loans are best for a particular piece of property and provides long term strategies that will enhance your credit standing - not hurt it.

As with any team, it takes a while to work together to make sure that you have all the right players. At times, you will find that players need to be traded and sometimes it is good to have alternates.

I encourage all of my investors to interview their teammates in advance. Have a series of questions prepared in advance and determine who you feel most comfortable with. We have found that it takes a couple of plays sometimes before they really understand you and your goals, so be patient. If however, you don’t feel confident with their ability - trade them. This is your future - not theirs.

About the Author

Anne Lackey is a real estate investor in Atlanta and works with The REI Team at Solid Source Realty, Inc. http://www.theREIteam.com. She frequently helps other investors in their pursuit of financial freedom. She is the President of Solid Source Property Management, Inc. http://www.solidsourcepm.com

Real Estate Investing - Avoiding The ‘Frequently Made Mistakes’

Real estate investing has been the American dream. However, it’s not for the faint-hearted, many have lost money because they made mistakes. It’s a risky business so you need to know the ‘how to’s or you could join the ones who lost money rather than made it.

You know what some real-estate gurus tell you - Real estate investing is easy! It’s as simple as finding a low-priced property, getting it painted, plant some greenery, and wait for buyers to fight for it - so they say. They entice you into real estate investing by telling you it’s possible without even putting in a dollar.

A common scenario is someone who invests over a couple of thousand dollars for one of these Real estate investing seminars with some hot-shot investing guru. Excited about the prospect of making enough money to retire on, they become convinced that real estate investing is their answer. Only a year or so later, and they’ve realized that investing isn’t a quick fix, and it takes more than a seminar to be successful.

There are many pitfalls that new investors can make which we can only cover a few of - but at least it’s a start. Here are three of the main ones.

If you go into real estate investing emotionally, and not as a business venture, you’ll definitely lose out. What does this mean? Well, say you find a property that you immediately fall in love with. It’s so cute, it’s got a pretty garden, it’s got character etc. You will be making an emotional buy and not an objective one that should be considering the suitability of price, for tenants, and even resell prospects.

The less knowledge you have about real estate investment, the more risk you’ll be taking. Investing blind means buying real estate as if your eyes are shut - such as blinding believing all you’re told at real estate seminars or agents. You must do your research; read and read and then read some more on the subject; ask others who have been successful and learn from them. Just a little lack of knowledge could mean that you end up with a bad buy.

Many real estate investors have fallen due to lack of cash flow. This is the key phase for survival in the investing business. Not having cash reserves makes your position very risky and shaky. Sure you can use your credit but credit needs repayment. And that investment property will have hidden costs. The more pressure you’re under the easier it is to make silly mistakes. Make sure you allow for sufficient cash flow.

Research is only as good as knowing what to look for. An example; say you were investing using the ‘fix and flip’ technique which means re-selling quickly for a profit.

Say you buy a property that looks like it fits all the requirements. You spend a little bit of time researching and checking zoning requirements. All seems good and you spend money and time doing it up. Only to find out that you hadn’t checked requirements carefully enough and you’ve created an apartment block with too many apartments for the zoning area. Guess who’s going to be out of money? Do your reading for knowledge and your research for reducing risk.

So, you’re ready for your property to be tenanted. Don’t rush in and accept the first people who apply. It’s very gratifying to know that someone wants to live in your newly acquired property, and the cash would definitely come in handy with bank bills to pay. But it is well known by long-term real estate investors that bad tenants cost a lot more than a couple of weeks waiting for the right ones to come along. Screen your tenants - choose carefully. Getting references is a good start.

Summary:

To succeed in real estate investing you need to read for knowledge and research to reduce risk. Then you won’t get sucked-in by real estate investment gurus offering you the world for nothing.

About the Author

Brooke Hayles
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Real Estate Investing Seminars

When you look around, it’s amazing how many people are putting some of their extra cash into a real estate investment. Is it just that as the baby boomers get older, more of them are panicking about having enough money for retirement? Or is it just that all the reality shows on television about remodeling rooms and homes has given people the urge to remodel something?

Either way, there’s no doubt that plenty of people make good money from real estate, and so can you. But although you may have heard some of the stories about Joe Bloggs who bought a house without having a clue what he was doing, only to sell it and make a fortune down the road, chances are that won’t happen to you. As more people get into real estate investing, the harder it’s going to be to make money just through pure luck. You need to know what you’re doing to get the best results.

That’s where a real estate investing seminar can be useful. I’m sure you’ve heard the concept of modeling yourself on someone successful if you want to be successful too, and real estate investing is the same. If you can find someone who’s made a lot of money investing in real estate, learn their methods and then copy them, chances are you’ll be very successful too. Unfortunately, most people making lots of money from real estate aren’t interested in sharing their strategies with anyone. If you can find someone and get them to be your personal mentor, great.

But if you can’t find a personal mentor, then look around and find a real estate investing seminar run by someone who’s made a success of real estate investing. There are plenty of companies that run real estate investing seminars, usually because they’re trying to flog their latest development, and it’s probably a good idea to steer clear of those. Ask around, particularly if you have friends or family who invest in real estate, to see if they can recommend a seminar they’ve been to.

Do some searching on the Internet, and you’ll soon come across a number of real estate investing seminars. You can also search based on a presenter’s name, to see what other people have to say about the presenter’s background and the success of his or her techniques. Most importantly, leave your credit cards at home, so that if the seminar is mostly about selling you lots of expensive resources, you can go home and sleep on it before blowing a stack of money. After all, you want to use most of your money for investing in real estate.

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