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 is getting faster and easier

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

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

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

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

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

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

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

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

PUT ACTION BEHIND YOUR DECISION

.by Ujjal Ghosh
https://www.facebook.com/fxmakeupeffect#!/notes/ujjal-ghosh/put-action-behind-your-decision/265352986824021

Making a major decision in your life is a big deal. Many times, it will come after long hours wrestling with options and quieting yourself to hear the voice of the Spirit and where It is guiding you.

Now, when you do make your decision…make it 100%. Do not hold onto any doubts or think about what could have been if you had chosen another path. You will find peace and serenity from committing yourself fully to the decision you have made for your life, your business, your family - whatever it is.

I have found in my personal life that when I say “YES” absolutely to the decision the Universe has confirmed for me, I am blessed with greater abundance than I could have ever imagined on my own.

So, how do you commit to your decision with all of your being? Here are 4 steps to take you to this point:

Make your decision a definite one. There is no room for maybes here. Do not allow yourself even a 1% stake in another decision path, because you need to focus everything on this one decision that you have made.

Know that your decision will impact all areas of your life. You need to be ready to acknowledge the influence your decision will have on your whole life.

Say you make a big decision regarding your business, and you have committed yourself to starting a new venture. There may be things in your current life that will hold you back from dedicating yourself fully to this new life. It may be a relationship, a location, or even a material possession that will just remind you too much of your previous life before you made this big step forward.

Let it go.

Don’t let anything hold you back from this new decision that you devoted yourself to now. It will likely be very difficult to let go, but if it’s holding you back in repetitive patterns from your past… just release it.

Leave yourself no alternative. If you tell yourself, “Well, just in case, let me do this or plan for that…” - you are setting yourself up for failure. You are allowing your fear to contradict what you have already decided is right for you. Don’t let this happen.

Build a new life around your decision. Your new path will likely bring many changes your way. Make sure that you welcome this and create a new lifestyle that pleases you and supports your decision.

It is important to maintain a positive environment during this time of change. Part of this will be fun - create a happy space for your new business, and fill it only with things that you TRULY like and enjoy. Part of this will be extremely tough - like moving out of state or leaving a relationship, if need be.

But, you are on a new path now, and the rewards of committing yourself fully to your decision will surprise you immensely.

.

Real Estate Investing - Made Easy

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

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

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

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

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

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

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

About the Author:

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

Real Estate investing is getting faster and easier

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

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

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

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

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

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

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

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

Real Estate Investing Apprenticeship - An Overview

If you?re new to the world of real estate investing, you may be wondering how you can get started when there seems to be so much to learn and understand. Maybe you should consider a real estate investing apprenticeship.

A real estate investing apprenticeship can take any of several different forms. It can be a flexible arrangement with an experienced investor that you partner with for one deal only, or it could be a structured agreement whereby you form an ongoing working relationship with an individual or group of investors.

Either way, there are a few things you should consider before entering into a real estate investing apprenticeship.

First, what exactly do you want to get out of your real estate investing apprenticeship? In other words, what is it you are looking to learn? If you want to learn how to flip houses after rehabbing them, you should look for an experienced rehabber to partner with, offering to bird-dog or wholesale a few deals to him in exchange for looking over his shoulder throughout the process.

If you want your real estate investing apprenticeship to help you build your cash reserves for long term property holding, you should look for a mentor who is willing to split the profits on some larger deals. You might offer to do all or most of the legwork that many experienced investors are just too busy to do.

On the other hand, if you?re hoping to learn the ropes of lease option or subject to investing, you will want your real estate investing apprenticeship to build your skills in those areas. Find an investor with plenty of experience doing those types of deals, and offer to partner up with them several deals.

When approaching a potential mentor about a real estate investing apprenticeship, make sure you tell them what?s in it for them. Tell them the benefits they will realize by partnering with you. Offer to do all or most of the legwork, bring them leads and deals, and bring them potential buyers for their deals. Don?t expect them to want to help you simply out of the goodness of their heart.

Everyone likes to know they will be realizing a benefit from their efforts. Potential real estate investing apprenticeship mentors are no exception. Tell them how they stand to benefit and you will not only make a new friend, you may just make a ton of money, too!

Looking back, some of my most satisfying deals have been done in partnership with other investors. Most of them were win/win for all parties. I may not have recognized it at the time, but I was engaging in a real estate investing apprenticeship. You should explore the possibilities of doing the same.

Real Estate investing is getting faster and easier

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

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

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

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

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

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

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

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

Why Use Private Money For Real Estate Investing - Reason 2

You can’t judge a book by it’s cover, and you can’t judge a person by their credit score. Unfortunately banks, lenders and other financial institutions do exactly that, often using credit score as a sole determining factor in deciding whether to grant a new loan. Another great reason to use private money for real estate investing is that it won’t negatively impact your credit score. Why not? Read on to find out.

When you borrow money from private individuals, something very important does NOT happen. They do not pull your credit report. Therefore, no inquiry shows up the next time someone DOES pull your credit report. Inquiries can lower your score, and multiple inquiries can have a negative impact on your score and your overall credit picture.

How much of an impact? That depends on who’s reading the credit report, and which of the three reports they’re reading.

One this is certain? all other factors being equal, it’s far better to not have inquiries show up on your report. When you use private money for real estate investing, you avoid the automatic ?inquiry deduction? in your score, as well as the negative assumptions loan officers often make when they see multiple inquiries.

There are plenty of great reasons to use private money for real estate investing, and one of the best is that private lenders don’t pull credit. Of course, that doesn’t mean you NEVER want to pull your own credit report in order to show it to a potential lender, or even invite him to pull it himself. That can be a good strategy, especially when you’re in the process of trying to earn a new lender’s trust.

Once the relationship is established and you’ve paid back a loan or two, they should never need to pull your report again? something no institutional lender I’ve ever worked with has been willing to guarantee. You can see that using private money for real estate investing has some real advantages, one of which is preserving your credit by limiting the number of inquiries on your report.

Why use private money for real estate investing? Plenty of reasons! For more try http://www.private-money-real-estate-investing.com/why-private-money.html

Why Use Private Money For Real Estate Investing - Reason 2

You can’t judge a book by it’s cover, and you can’t judge a person by their credit score. Unfortunately banks, lenders and other financial institutions do exactly that, often using credit score as a sole determining factor in deciding whether to grant a new loan. Another great reason to use private money for real estate investing is that it won’t negatively impact your credit score. Why not? Read on to find out.

When you borrow money from private individuals, something very important does NOT happen. They do not pull your credit report. Therefore, no inquiry shows up the next time someone DOES pull your credit report. Inquiries can lower your score, and multiple inquiries can have a negative impact on your score and your overall credit picture.

How much of an impact? That depends on who’s reading the credit report, and which of the three reports they’re reading.

One this is certain? all other factors being equal, it’s far better to not have inquiries show up on your report. When you use private money for real estate investing, you avoid the automatic ?inquiry deduction? in your score, as well as the negative assumptions loan officers often make when they see multiple inquiries.

There are plenty of great reasons to use private money for real estate investing, and one of the best is that private lenders don’t pull credit. Of course, that doesn’t mean you NEVER want to pull your own credit report in order to show it to a potential lender, or even invite him to pull it himself. That can be a good strategy, especially when you’re in the process of trying to earn a new lender’s trust.

Once the relationship is established and you’ve paid back a loan or two, they should never need to pull your report again? something no institutional lender I’ve ever worked with has been willing to guarantee. You can see that using private money for real estate investing has some real advantages, one of which is preserving your credit by limiting the number of inquiries on your report.

Why use private money for real estate investing? Plenty of reasons! For more try http://www.private-money-real-estate-investing.com/why-private-money.html

Real Estate Investing Apprenticeship - An Overview

If you?re new to the world of real estate investing, you may be wondering how you can get started when there seems to be so much to learn and understand. Maybe you should consider a real estate investing apprenticeship.

A real estate investing apprenticeship can take any of several different forms. It can be a flexible arrangement with an experienced investor that you partner with for one deal only, or it could be a structured agreement whereby you form an ongoing working relationship with an individual or group of investors.

Either way, there are a few things you should consider before entering into a real estate investing apprenticeship.

First, what exactly do you want to get out of your real estate investing apprenticeship? In other words, what is it you are looking to learn? If you want to learn how to flip houses after rehabbing them, you should look for an experienced rehabber to partner with, offering to bird-dog or wholesale a few deals to him in exchange for looking over his shoulder throughout the process.

If you want your real estate investing apprenticeship to help you build your cash reserves for long term property holding, you should look for a mentor who is willing to split the profits on some larger deals. You might offer to do all or most of the legwork that many experienced investors are just too busy to do.

On the other hand, if you?re hoping to learn the ropes of lease option or subject to investing, you will want your real estate investing apprenticeship to build your skills in those areas. Find an investor with plenty of experience doing those types of deals, and offer to partner up with them several deals.

When approaching a potential mentor about a real estate investing apprenticeship, make sure you tell them what?s in it for them. Tell them the benefits they will realize by partnering with you. Offer to do all or most of the legwork, bring them leads and deals, and bring them potential buyers for their deals. Don?t expect them to want to help you simply out of the goodness of their heart.

Everyone likes to know they will be realizing a benefit from their efforts. Potential real estate investing apprenticeship mentors are no exception. Tell them how they stand to benefit and you will not only make a new friend, you may just make a ton of money, too!

Looking back, some of my most satisfying deals have been done in partnership with other investors. Most of them were win/win for all parties. I may not have recognized it at the time, but I was engaging in a real estate investing apprenticeship. You should explore the possibilities of doing the same.

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