Real Estate Investing: Flipping Properties

A lot of people these days are preaching about the buying and holding method of gaining wealth with real estate. There indeed may come a time in your life or business when you?ll want to hang on to a piece of property, although you?ll only be interested in keeping certain types of property. If you?re just starting out, flipping a house may be an ideal way to get started.

Basically, there are three ways that you can flip a house, although each one has its own terms, motivation, and type of property. The first method is known as retailing. What this means, is that you buy a house in bad shape, do the repairs to fix it up, then turn around and sell it. There are a variety of houses in need of repairs out there, and several ways that you can quickly flip a house to net profit. All you need to know are the techniques that will get you the most money in the least amount of time.

The second way you can flip a house is though wholesaling. Wholesaling involves finding a home for sale then flipping it to an investor for a fast, yet small profit. To do this, you?ll need to know the real estate investors in your area, the types of homes that flip the best, and how to fund your property so you can flip it to them. If you live in a big area or a city, you?ll find that using the wholesaling method of flipping houses is actually easier to accomplish.

The third way to flip a house is by assigning the purchase. Using this method, you?ll commit to buy the house. Instead of closing the deal yourself, you?ll assign it to a real estate investor - of course for a small fee. The investor will take the contract over and close the purchase themselves - flipping the house. This can be very profitable, especially if you invest in the right home. You don?t need to have your contract worded any special way to be legal, although you will need to determine the assignment fee.

If you?re looking to break into the real estate market and make big bucks, you?ll need to learn all about flipping houses. Flipping houses is very profitable, especially once you have learned the basics. The first and third methods are the best, although they will both take quite a bit of work on your part. Restoring homes isn?t easy, and you?ll need to have a team qualified to handle any repairs. Assigning the purchase may be difficult when you first start out, although it will get easier with time. If you stay at it and do your best to make a profit - you?ll be an expert at flipping homes in no time at all.

About the Author:

Mark Estates writes for multiple real estate and foreclosure investing porgrams such as SharkBaitSoftware.com.

Real Estate Investing: Buy To Rent, No Money Down

The market for rental houses is as strong as the demand for new homes. Why not have your cake and eat it too through buying to rent!
With home sales at a record high, it might surprise you to know there is an equally strong market for rental properties. A constantly moving population of business professionals and financial over extension in the 1990s are the primary reasons why an ever-increasing number of people will be renting suitable properties instead of buying a home this year. This is great news for real estate investors!

The robust house rental market is allowing smart investors to have their cake and eat it too. Instead of buying a home, fixing it up and trying to flip it for a profit, real estate investors can turn the home into a rental which provides a positive monthly cash flow. And the home is always there to be sold if the need arises.

It varies by region and the typical age of houses in a particular area, but the general rule for purchasing a property thats optimum for becoming a rental is a house less the fifteen years old with easy access to major highways and shopping areas. Homes should never be out in the middle of nowhere and always less then a forty-five minute drive to major business areas. Three bedroom houses that have central air conditioning and come with all major appliances (including a washer and dryer) are likely to fetch a higher monthly rent.

Many investors shy away from rentals because theyve heard the horror stories told by landlords who chose the wrong tenants. But that has become the exception to the rule. Most people who need to rent a home have good credit, a solid record of on time rent payment and solid employment. Some are professionals whose job requires frequent relocation. Others have purchased a new home and are waiting for it to be built. In places like Phoenix where I live, a population boom has extended the waiting time to move into a new home.

Finding qualified tenants has become easier with inexpensive credit and background checks. Anyone that wants to rent a house knows a credit and background check is all but mandatory. You can avoid tenant nightmares by refusing to rent to anyone with evictions, bankruptcies or judgments against them. Ironically, people with all those things on their credit report can actually purchase a home to live in or rent out with no money down.

There are a number of ways for anyone to purchase homes, apartment buildings or other properties regardless of credit or employment history. All it takes is the right information and persistence. The lazy need not apply, but the rewards are substantial for those who try.

more at http://billknell.tripod.com/buy/money.html

About the Author

A native New Yorker now living in Arizona, Bill Knell is a forty-something guy with a wealth of knowledge and experience. He’s written hundreds of articles on a wide variety of subjects. A popular Speaker, Bill Knell presents seminars on a number of topics that entertain, train and teach. A popular radio and television show Guest, you’ve heard Bill on thousands of top-rated shows in all formats and seen him on local, national and international television programs.

5 Minute Guide to Real Estate Investing for Beginners

One of the best ways to make money is to invest in real estate. There are risks, but of all the risks in investing real estate has some of the lowest. Of course, beginners need to know a lot of information before beginning in order to protect themselves as well as their interests. A real estate investing program or a real estate investing seminar are two great suggestions for beginners interested in real estate investing.

Of all the important things for real estate investors to know, most importantly beginners, is that if you don?t know real estate law as well as the rules and regulations that accompany it then you may be putting your investment at risk. In order to avoid this you need to learn as much as possible about real estate law so there is no problem and you don?t risk your investment simply out of ignorance. Once you are aware of real estate law and the market as a whole then you will be ready to move onto the next step.

The first tip is to know the current market price for any piece of real estate you are considering. Don?t take the seller?s word for it but instead find an appraiser or use your own knowledge to come up with a price for the real estate. When you know what the selling price is and the current market value then you will have a better chance at getting a deal. You want to always know more than the seller so that you can negotiate so that you end up with a bargain. Buying bargain real estate is one of the best ways to make money and if you can find a seller willing to sell for less than 20% of the market value then you should definitely buy.

Another suggestion is to simply buy real estate that has hidden potential that could easily be unlocked to increase the value of the real estate. Whatever the hidden potential is it must be capitalized on and increase the value of the home by at least 20% for it to payoff. Make sure you do this within six month?s of purchasing the real estate.

If you follow these basics then you should have no problem getting started and making money with real estate investing. Keep in mind that it does take time and hard work to make it pay off but it will in the long run.

What Is Real Estate Investing?

Real estate investors don’t need to ask the question, “What is real estate investing?” They know the answer, because they know what real estate investing means to them, which may be something quite different than it means to someone else. What is real estate investing to you?

You could ask five different people the question, “What is real estate investing?” and get five completely different answers. The only thing for sure is that real estate investing normally involves real estate. Let me tell you what I mean.

First, to one person, real estate investing might mean buying and selling. Normally, the investor wants to buy low and sell high, and this kind of investor doesn’t normally want to hold on to a piece of property for very long. Their answer to “What is real estate investing?” is “Quick turn around.”

Another person’s answer to the question, “What is real estate investing?” might mean buying and holding. This kind of person doesn’t mind the thought of being a landlord, and doesn’t mind the idea of managing tenants and collecting rents. Maintenance and upkeep don’t scare this investor.

Yet another type of investor is interested in high-value commercial property like hotels, office buildings, and malls. This is a high-risk, high-reward game played for big stakes. When asked, “What is real estate investing?” this investor doesn’t shy away from mega-sized deals.

One more type of investor prefers rehabbing and repairing. This investor buys the worst property and uses their skills and abilities to turn it around and make it nice again. These investors breathe new life into old properties. Their answer to, “What is real estate investing?” involves creating something of great value from next to nothing. People with construction experience or project management skills fit this type of investing best.

There’s also the kind of real estate investor who doesn’t actually buy any property at all. Their answer to, “What is real estate investing?” may involve partnerships, trusts, and possibly even the sale of notes, mortgages, and other financial instruments.

Real estate investing is a very big umbrella, and there are as many different answers to the question, “What is real estate investing?” as there are individual investors. Your job is to do the research, learn the strategies and then decide for yourself which style fits you.

At my website, I’ve written a more in-depth article on the question, “What Is Real Estate Investing?”

Now, go make more offers!

Real Estate Investor Software - Choose Real Estate Investing Software Wisely

The right real estate investor software is helping real estate investors big and small become wealthy. Manually performing tasks such as property and cash flow analysis, contract creation, prospect management etc. is becoming a thing of the past. Technology has led to the development of real estate investing software that performs these tasks in precise detail, resulting in increased productivity and profits. However, not all real estate investor software is equal here are a some tips for choosing the best software.

With more choices of real estate investor software coming on the market, choosing the best software is the hard part. Like other software programs you have several choices some more expensive than others, but one to fit almost every budget. To make the best decision first narrow down your choices based on your budget and investing needs.

If you are considering a certain piece of real estate investor software, a good practice is to do some research online. Reviews are a good way find out how effective the software has been for others. Use a online search engine, like Google, to search for web pages that have feedback on the particular real estate investing software that you are considering. Read both positive and negative feedback on the software to help make a better decision.

Ask colleagues. Who would know better than someone who is using software. Ask around and find out what if any real estate investing software they use, how they like it and if they have any recommendations.

If at all possible, demo the real estate software if the vendor has a trial, so that you can see how it works for your investing needs. You may know someone with the software, perhaps they will allow you to test the software to see how you like it.

It is imperative to know in advance the system requirements for any real estate investor software you may consider. Make sure your computer is compatible with any software and meet the minimum system requirements. Some vendors may offer a refund should the software be incompatible, you might find that the vendor you purchased from does not. Prevent the hassle and make this a top priority before purchasing.

You must ensure that the real estate investing software meets your needs and will benefit you. Primarily what you want to look for is software that allows you to focus on making deals and become more productive and profitable. If the software cannot do tasks faster, better, or cheaper than you can do the work, then it is of no benefit to you. Simplicity and efficiency is the key here. Be aware of all of the functions the software can perform and how they can help you in your business.

Upgrades are an important component of real estate investor software, you will want to know if upgrades are provided by the vendor. Upgrades vary by manufacturer with some offered discounted or free and others requiring full price for software upgrades. Know how often new updates and upgrades are rolled out and all associated fees required to obtain them.

The task of choosing the best real estate investing software for your business does not have to be a chore. Just use due diligence and a little research. Make sure that it is affordable and has functions that provide the benefits needed to allow you to be more productive and profitable. Make your choice the investment in your business that keeps on giving. In other words choose real estate investor software that is going to provide a good ROI.

“How To Increase Your Net Worth By $20,000 to $100,000 On Every Real Estate Investing Deal You Do”

Consider these parameters for a real estate deal:

Consider these parameters for a real estate deal:

Property Value: $250,000
Purchase Price: $160,000
Repairs: $2,500

If you analyze the numbers, you see that the equity available in this deal is $87,500 (Property Value minus Purchase Price minus Repairs).

So here’s a hypothetical question for you: Assuming that the information above is accurate, and the property is located in an area that you view as acceptable and/or favorable, then:

If I offered to give you this deal in exchange for $10,000 in cash, would you do it?

Remember - this is hypothetical. The real question here is this:

Would you exchange $10,000 in cash for $87,500 in equity?

For most smart investors, the answer is: Absolutely YES!

And this is called “Wholesale Real Estate Investing” - the process of buying a lot of equity at a very significant discount from another real estate investor who has already done the hard work of finding a deal and getting it under contract.

Just think about that - consider how easy real estate investing would be for you if you had a network of real estate investors in your area (and maybe all over the country) who, several times each month, offered you the opportunity to purchase significant amounts of equity for a severe discount…

…It would be quite easy to become wealthy, wouldn’t it?

The answer is: Yes, it will.

You’ve got to admit - it will be a pretty wonderful thing when you know how to find great real estate deals in which you can trade a small amount of cash for a large amount of equity without even having to find the deal yourself…

…and that’s exactly what wholesale real estate investing is all about.

Wholesale real estate investing is conceptually very simple. Here’s how it works:

First, “Investor A” finds a great real estate deal with a lot of equity. Typically, Investor A will have spent a significant amount of time, money and expertise to find the deal, negotiate the term and get the property under contract. By putting the property under contract, Investor A now has control of the property, and the equity in the property.

(For this example, imagine that Investor A has found a property worth $200,000 and has set a purchase price of $115,000 and he also knows that there are $15,000 in repairs, which leaves an equity position of $70,000).

Second, “Investor A” finds another party, “Investor B”. Investor B recognizes that the contract that Investor A has established is worth $70,000 in equity, and so he strikes a deal with Investor A to turn the deal over to Investor B in exchange for some amount of cash (we’ll use the value of $12,000 in this example).

So Investor A is giving up $70,000 in “potential” profit in exchange for $12,000 in current profit. And Investor A is paying $12,000 because he believes he can make more than that on the deal, since there’s a full $70,000 of equity.

This deal between Investor A and Investor B is called an “Assignment”, because Investor A is assigning the contract to Investor B.

Third, Investor B does his “due diligence” to confirm that the deal is as good as he thinks it is.

Finally, Investor B closes the purchase of the property, and Investor “A” receives the assignment fee from Investor B.

This is, obviously, a simplification of the process. But this is essentially how it works - not so difficult, is it?

ABOUT THE AUTHOR

Real Estate Investing: Protecting Your Assets

Real estate investing can provide you with positive cash flows, tax benefits and the satisfaction of having impacted your life positively. Just like in any other business, in real estate investments too, there are intricacies that are personal to it, and can cause negative impacts if ignored. Many first time real estate investors make the mistake of investing their hard earned money without understanding, and thereby risking their investments. There is a need in real estate investing of protecting your assets.

Avoiding the Errors:

It depends on why you are investing in a particular property. Do you intend to hold it for a long period, or do you intend to turn it around for selling at the earliest? Let us look at some of the errors that certain investors make, which you need to avoid to protect your assets, and ensure excellent returns on your investments.

Check the Property:

Do not get sucked into the excitement of investing in a real estate property. There are rampant claims of high return on investment in the real estate business. Check the condition of the property, and how much modifications, renovations, etc will be required. Ensure you have a right real estate agent who will not overlook all the seemingly insignificant but important details.

Inspect Thoroughly:

Have a professional inspector thoroughly check the property. You need to exercise sound business judgment, as you are ready to invest your hard earned money. If it is a rental property, check with the tenants regarding pest problems, structural damage or any reoccurring problems.

Check All Documents:

Documents involved in a property can be overwhelming: building permits; zoning laws; rental and lease applications (in case of rental property); underlying loan documents; CC&Rs (covenants, conditions and restrictions); by-laws; title policies; inspection reports; purchase contracts; insurance; the list is never ending.

Cash Flow:

If your real estate investing is in a rental property, you intend to hold on to the property for a longer period, as much as 15 to 20 years. You will need to ensure cash flow to take care of your property, vis-?-vis the property?s maintenance, repairs, improvements, etc. There will be times when your rental property will be vacant and not earning you a rental. You still need to have cash for the upkeep of your property.

Short Duration Investing:

If you plan to invest in a real estate property for a shorter duration, you may not feel the need to invest heavily on improvements etc. Sometimes, short duration investing could be risky, as the property may lose in value. Generally, property prices appreciate over longer periods.

To help you in real estate investing, there are professionals available, online as well as offline, who can guide you in protecting your assets.

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