How You Can Get Started in Creative Real Estate Investing - Even If You’re Broke

Among the most frequent questions asked in creative real estate forums is the timeless classic “How do I get started?” It has become almost comical how often this question is repeated in the forums. You could nearly set your watch by it.Don’t get me wrong, I don’t intend to ridicule the people who post these messages. Rather, to point out how many of them there really are and how much demand there is for this information. In this article, I’m going to give you some idea of ways you can get started in the creative real estate business without using much (if any) of your own money.

Step #1: Develop A Plan

There is an old saying which goes, “if you fail to plan, you’re planning to fail.” While this may seem a bit clich?, truer words have never been spoken, especially with regard to real estate investing. It is crucial to have some idea of what you want to do before you begin doing it. Since this article is geared toward getting started with as little money as possible, let’s develop a plan for wholesaling. If you’re not familiar with the term, have a look at my article “Creative Real Estate Glossary” for more information.

When I’m putting together a plan, I like to start with the goal in mind. For instance, we can set a goal of making $20,000.00 in the next 30 days. An ambitious goal? You bet! An attainable goal? Absolutely! With the goal in mind, we can work our way back to the present by asking ourselves a series of questions. A typical set of questions may be:

What steps do I have to take to achieve my desired outcome (make $20,000 in 30 days)?
I have to find and assign 4-5 wholesale deals.
How do I do that?
1. Line up 4-5 buyers for my deals 2. Negotiate acceptable deals with 4-5 sellers

How do I line up buyers?
1. Call handyman services and small construction companies. Ask if they’d be interested in buying rehabs in my target neighborhood. 2. Place small ads in the “shopper” newspapers. The ad needn’t be fancy. I’ve seen great success with “Handyman Special. Cheap. Cash.”

How do I negotiate deals with sellers?
1. Get some basic business cards - OfficeMax sells 1,000 for $11. There are also places online which offer a small number of cards for free. Hand these cards out to everyone. The more people who know what you do, the better chance you have of meeting people who need your help. 2. Flyers - these are fairly inexpensive to copy and people tend to hold onto them for quite a while. Leave one at each house in your target area every couple weeks. 3. Word of mouth - Tell people you’re interested in buying real estate! You’ll be surprised how many people are either selling a home or know someone who needs to sell theirs.

Just keep asking yourself this sort of questions until every step in your plan is clearly spelled out. Once you’ve got it all figured out, move on to…

Step #2: Take ACTION!

Would you believe more than 90% of the people who buy creative real estate courses never take any action on them? That’s insane! Once you’re armed with the information necessary to achieve your goals, take the action you know you need to take! Folks, this is absolutely the most important thing any new investor has to do! Without action, you’re going to be stuck in “analysis paralysis” mode forever! Please don’t let that happen to you. Your plan says to hand out business cards and flyers, right? Do it now! Don’t wait another second! Take it from someone who has wasted more than his share of time dragging his feet. You don’t want to look back on this day 10 years from now and say “If I had take action then, I’d be a millionaire now.” Nothing is more expensive than regret!

Step #3: Measure Your Results

Did you know that a commercial airliner is off course 99% of the time? It’s absolutely true. Crosswinds and other forces acting upon the aircraft’s flight surfaces causes it to be off course to a small degree almost the entire time that aircraft is in flight. So how the heck to the pilots get it where it is supposed to go? They recognize when it’s off course and they make small corrections.

Sometimes things are going to go perfectly. You’re going to execute every part of your plan like clockwork and the big payoff will be waiting for you at the end of the journey. Maybe once in a lifetime….

In real life, things go wrong. Sometimes they go horribly wrong. When that happens, you have to be able to recognize it quickly so you can make “course corrections” and carry on. If you can develop this one precious skill, you’ll learn that there is no such thing as failure. If you recognize what isn’t working and change it, you’re going to achieve your goal sooner or later.

So don’t get all bent out of shape when things go wrong. In truth, things will go badly more often than they’ll go right, but with the right mindset, you’ll barely even notice. Notice when you’re off course, make small course corrections and fly on to your destination

What If I Don’t Succeed Right Away?

Thomas Edison didn’t invent the light bulb on his first try. He didn’t invent the light bulb on try #2, either. In fact, he didn’t even invent the light bulb on try #2,000! It took Mr. Edison over 2,000 attempts to get the light bulb just right. When asked about this laborious process, Edison didn’t lament the 2,000 “failures” he had endured. Rather, he remarked that he had “learned 2,000 ways NOT to make a light bulb.”

If you don’t succeed right away, allow me to congratulate you. You’ve just learned one way not to do a real estate deal. I bet you won’t do it that way again, will you? You learned a lesson or two and now you’re ready to try again. Good for you! As long as you get back out there and take that action, you’ll do Mr. Edison proud.

In Summary

We’ve taken a look at 3 steps you can take right now to get started in creative real estate. I didn’t go into detail regarding seller negotiation, flyer copy or any number of other things, but not because I want to withhold that information from you. I just don’t want to overload your brain in one article. You’ve also read about Thomas Edison and the 2,000 lessons which brought him to inventing the light bulb and how you can employ the same mindset to achieve results just as profound as Edison’s.

About the Author

Want more information? Visit Worth Repeating for free creative real estate articles and other resources

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!

How You Can Get Started in Creative Real Estate Investing - Even If You’re Broke

Among the most frequent questions asked in creative real estate forums is the timeless classic “How do I get started?” It has become almost comical how often this question is repeated in the forums. You could nearly set your watch by it.Don’t get me wrong, I don’t intend to ridicule the people who post these messages. Rather, to point out how many of them there really are and how much demand there is for this information. In this article, I’m going to give you some idea of ways you can get started in the creative real estate business without using much (if any) of your own money.

Step #1: Develop A Plan

There is an old saying which goes, “if you fail to plan, you’re planning to fail.” While this may seem a bit clich?, truer words have never been spoken, especially with regard to real estate investing. It is crucial to have some idea of what you want to do before you begin doing it. Since this article is geared toward getting started with as little money as possible, let’s develop a plan for wholesaling. If you’re not familiar with the term, have a look at my article “Creative Real Estate Glossary” for more information.

When I’m putting together a plan, I like to start with the goal in mind. For instance, we can set a goal of making $20,000.00 in the next 30 days. An ambitious goal? You bet! An attainable goal? Absolutely! With the goal in mind, we can work our way back to the present by asking ourselves a series of questions. A typical set of questions may be:

What steps do I have to take to achieve my desired outcome (make $20,000 in 30 days)?
I have to find and assign 4-5 wholesale deals.
How do I do that?
1. Line up 4-5 buyers for my deals 2. Negotiate acceptable deals with 4-5 sellers

How do I line up buyers?
1. Call handyman services and small construction companies. Ask if they’d be interested in buying rehabs in my target neighborhood. 2. Place small ads in the “shopper” newspapers. The ad needn’t be fancy. I’ve seen great success with “Handyman Special. Cheap. Cash.”

How do I negotiate deals with sellers?
1. Get some basic business cards - OfficeMax sells 1,000 for $11. There are also places online which offer a small number of cards for free. Hand these cards out to everyone. The more people who know what you do, the better chance you have of meeting people who need your help. 2. Flyers - these are fairly inexpensive to copy and people tend to hold onto them for quite a while. Leave one at each house in your target area every couple weeks. 3. Word of mouth - Tell people you’re interested in buying real estate! You’ll be surprised how many people are either selling a home or know someone who needs to sell theirs.

Just keep asking yourself this sort of questions until every step in your plan is clearly spelled out. Once you’ve got it all figured out, move on to…

Step #2: Take ACTION!

Would you believe more than 90% of the people who buy creative real estate courses never take any action on them? That’s insane! Once you’re armed with the information necessary to achieve your goals, take the action you know you need to take! Folks, this is absolutely the most important thing any new investor has to do! Without action, you’re going to be stuck in “analysis paralysis” mode forever! Please don’t let that happen to you. Your plan says to hand out business cards and flyers, right? Do it now! Don’t wait another second! Take it from someone who has wasted more than his share of time dragging his feet. You don’t want to look back on this day 10 years from now and say “If I had take action then, I’d be a millionaire now.” Nothing is more expensive than regret!

Step #3: Measure Your Results

Did you know that a commercial airliner is off course 99% of the time? It’s absolutely true. Crosswinds and other forces acting upon the aircraft’s flight surfaces causes it to be off course to a small degree almost the entire time that aircraft is in flight. So how the heck to the pilots get it where it is supposed to go? They recognize when it’s off course and they make small corrections.

Sometimes things are going to go perfectly. You’re going to execute every part of your plan like clockwork and the big payoff will be waiting for you at the end of the journey. Maybe once in a lifetime….

In real life, things go wrong. Sometimes they go horribly wrong. When that happens, you have to be able to recognize it quickly so you can make “course corrections” and carry on. If you can develop this one precious skill, you’ll learn that there is no such thing as failure. If you recognize what isn’t working and change it, you’re going to achieve your goal sooner or later.

So don’t get all bent out of shape when things go wrong. In truth, things will go badly more often than they’ll go right, but with the right mindset, you’ll barely even notice. Notice when you’re off course, make small course corrections and fly on to your destination

What If I Don’t Succeed Right Away?

Thomas Edison didn’t invent the light bulb on his first try. He didn’t invent the light bulb on try #2, either. In fact, he didn’t even invent the light bulb on try #2,000! It took Mr. Edison over 2,000 attempts to get the light bulb just right. When asked about this laborious process, Edison didn’t lament the 2,000 “failures” he had endured. Rather, he remarked that he had “learned 2,000 ways NOT to make a light bulb.”

If you don’t succeed right away, allow me to congratulate you. You’ve just learned one way not to do a real estate deal. I bet you won’t do it that way again, will you? You learned a lesson or two and now you’re ready to try again. Good for you! As long as you get back out there and take that action, you’ll do Mr. Edison proud.

In Summary

We’ve taken a look at 3 steps you can take right now to get started in creative real estate. I didn’t go into detail regarding seller negotiation, flyer copy or any number of other things, but not because I want to withhold that information from you. I just don’t want to overload your brain in one article. You’ve also read about Thomas Edison and the 2,000 lessons which brought him to inventing the light bulb and how you can employ the same mindset to achieve results just as profound as Edison’s.

About the Author

Want more information? Visit Worth Repeating for free creative real estate articles and other resources

“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 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.

Equity Discount Real Estate Investing

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 savvy investors, the answer is: Absolutely YES!

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 even 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, fairly quickly, wouldn’t it?

The answer again, is: Absolutely Yes, it will.

It is through smart “wholesale real estate investing” that you can increase your net worth by $20,000 to $100,000 on every real estate deal that you do.

…Now the burning question becomes, “Where exactly do I find these wholesale real estate investing deals?”

I know of at least 3 solid sources…

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

…And that’s exactly what “wholesale real estate investing” is all about.

So let’s get right to it. Here are 3 places to find wholesale real estate deals:

1.) Visit the local real estate investing club in your area. Almost all of these clubs have networking opportunities to work with other investors who wholesale deals regularly, and this is an easy way to find great opportunities.

2.) Watch for ads in the newspaper, television, and in other media that advertise slogans like, “We Buy Houses”, or “Sell Your House in 9 Days” or anything similar to that. Most of the time, these people are real estate investors, and they are happy to wholesale deals to people like you.

3.) Watch your email-box. Why? Because if and when you choose enrollment in various free e-courses online, such as that via tm-RealEstateInvesting.com, you’ll be provided with automatic notification about great local and national deals as they become available. But be forewarned - you’ve got to act quickly whenever these deals are announced, because obviously the response is always significant.

Happy Hunting!

About the author:
James Louis writes about things that impact our society. A long time real estate investor, he likes to share his knowledge, insights and tools. One of his favorite tools is the 1031 exchange. For more information visit:
http://www.the-1031-exchange-site.com

Small Business Credit Card Advantages David HallObtaining a business credit card enables the small business owner to separate personal expenses from business expenses. Offering business credit cards to their employees eliminates the need for employees to use their personal credit cards or cash to make company purchases. Employees using a business credit card will not need to fill out expense statements, wait for approval and reimbursement from their company. Transactions are itemized and reported on quarterly statements that make it easy for management to make changes if needed. Business credit cards can be provided to the employees with preset spending limit and helps in controlling employee spending.

One of the main advantages of a business credit card is that it provides efficiency and control over company expenses by consolidating individual expenses. Instead of receiving a flood of invoices and expense statements, the company can receive one expense statement each quarter with itemized employee expense. Also business credit card companies can provide an itemized year-end statement with summary of all transactions. This enables the manager to track expenses very clearly and also simplifies the figuring out of the company tax return.

Business credit cards offer many benefits such as 0% intro APR on your balance transfers and purchases, cash back rewards on business purchases, business travel rewards, no annual fee, online account management and discount on everyday business purchases plus a host of other features and benefits. These bonuses and rewards can lower the company expenses and add up to a significant amount of savings for the company. An important feature of business credit card is the ability to build the company credit standing and receive incremental increases in credit line and cash flow over time.

With a business credit card, employees are less likely to make impulse purchase, because they are aware that the business credit card is company property and should not be used to make personal purchases. Avoid mismanagement of your business credit card by always making payment on time thus avoiding late fees and higher interest rate. Make sure you read and understand the terms of use of your small business credit card.

Business Credit Card Advantages

Business owners are able to manage and control employee expenses

Receive quarterly and annual statements detailing their employee’s expenses

Set employees expense limit

As a safety issue, employees have no need to carry cash for company expenses

Quarterly and annual reports which simplifies income tax preparation

Having a line of credit which increase cash flow

Taking advantage of business credit card features and benefits

Online account management

About the author:
About The Author:
David Hall owner of the popular site www.iCreditOnline.comHe has tools for finding a wide range of financial services including secured and unsecured cards, student and business cards, auto loans, and more from the most reputable companies in the industry. You can also compare multiple credit card offers, securely complete an online credit card application, and receive a credit decision in at least 60 seconds. Visit David’s site today: www.iCreditOnline.com

You have permission to republish this article on your website on condition that you include the byline and hyperlinks intact:

Real Estate Investing - Matching Buyers with Properties

One of the things you have to consider as a real estate investor is matching buyers with properties that you acquire. When you develop a buyers list for your properties, whether you?re trying to wholesale or rehab, you will find that the simple saying, ?Different strokes for different folks,? applies. Some of the different ?strokes? might be low-end rentals, high-end rentals, multiple unit rentals, and rehabilitation projects.

The different ?folks? will often match these properties. For every investor, there is a niche they specialize in. If you want to wholesale properties, it?s up to you to offer the greatest spread of properties to fellow investors. Also, you must take into account, your regular home buyers (owner-occupants).

Part of any building block of a business is to identify the target market. For instance, with this site, we identified the people who would be visiting it most likely. We tailor the articles with content that is basic in order to meet the ?customer? needs. We don?t overload the articles with complexities, but we do offer the basic 1-2-3 steps for beginning a real estate investment business or a business in general. Part of this required developing a ?character? for our visitors. In doing this, we are constantly developing new avenues of interest that we think our visitors will benefit from, including hard money financing (coming soon).

So, for matching buyers with properties is to simply define what each potential buyer prefers. When you decide to advertise for buyers, you might put out ads like this:

Deep Discounts-Properties need Rehab, Priced to Sell, Call XXX-XXX-XXXX

or

Excellent Cash Flow Rentals offered at Discounted Prices, Call XXX-XXX-XXXX

This may attract buyers who are looking for rehab projects. Thus, you?ll be matching rehabbers/contractors with properties in need of rehab. However, when the phone starts ringing, you?ll need to distinguish the type of homes each potential buyer wants. For instance, some might want 4 bedroom, 2 Bath, high-end rehabs, while others will want your basic ?bread and butter? home, 3 beds and 1 bath. Also for the second advertisement, you?re looking for landlords. Additionally, you?ll need to identify the different areas each buyer will consider.

You may also run an ad like this:

Stop Renting-Starter Homes Available-Mint-Discounted Prices Call XXX-XXX-XXXX

These buyers might be your owner-occupants that are currently renting that you?ll add to your buyers list. Part of your strategy here might be buying, rehabbing and selling them yourself.

Of course, running one ad might be most economical:

Deep Discounted Properties for Sale, Home Buyers, Investors Call XXX-XXX-XXXX

Now, how do you determine what each investor/buyer wants? You may ask the following questions:

What type of property are you looking for?
Specifics? (# of bedrooms, baths, rooms)
What locations are you primarily interested in?
Have you closed on properties in these areas before?
What are your overall objectives for properties you buy?
What is the ideal return on investment you?re looking for?
What type of rentals do you prefer?
How do you continue to grow your customer base (the amount of people you can sell a property to)?

Well since money is always the bottom line and not all buyers have cash to buy (and you should never expect or rely on that solely), expanding the pool of investors and buyers you can sell to comes down to having contacts. If your buyers don?t have the contacts or the cash, you will need them. So four simple things you should do are:

Make contacts with good mortgage brokers and use them to qualify buyers
Make contacts with good hard money lenders to qualify investors (noobs)
Make sure these brokers and lenders can close deals quickly
Make sure you know the process inside and out so you can expedite the process
Lastly, you may look for ads that offer rehabbed homes for sale. For example, if you see a for sale ad that says, ??renovated? or some variation, call that number and begin the process of adding that individual to your buyers list. Visit the property to get a completely true feel for what they look for. This can be a very effective way of getting investors who are actually involved in performing on a contract because they already have demonstrated the ability to do so!

Always remember that you?re running a business. Every successful business has a well-defined strategy for marketing, sales and growth. Real estate investing is no exception!

?2006 noobdogs.com

Real Estate Investing - Matching Buyers with Properties

One of the things you have to consider as a real estate investor is matching buyers with properties that you acquire. When you develop a buyers list for your properties, whether you?re trying to wholesale or rehab, you will find that the simple saying, ?Different strokes for different folks,? applies. Some of the different ?strokes? might be low-end rentals, high-end rentals, multiple unit rentals, and rehabilitation projects.

The different ?folks? will often match these properties. For every investor, there is a niche they specialize in. If you want to wholesale properties, it?s up to you to offer the greatest spread of properties to fellow investors. Also, you must take into account, your regular home buyers (owner-occupants).

Part of any building block of a business is to identify the target market. For instance, with this site, we identified the people who would be visiting it most likely. We tailor the articles with content that is basic in order to meet the ?customer? needs. We don?t overload the articles with complexities, but we do offer the basic 1-2-3 steps for beginning a real estate investment business or a business in general. Part of this required developing a ?character? for our visitors. In doing this, we are constantly developing new avenues of interest that we think our visitors will benefit from, including hard money financing (coming soon).

So, for matching buyers with properties is to simply define what each potential buyer prefers. When you decide to advertise for buyers, you might put out ads like this:

Deep Discounts-Properties need Rehab, Priced to Sell, Call XXX-XXX-XXXX

or

Excellent Cash Flow Rentals offered at Discounted Prices, Call XXX-XXX-XXXX

This may attract buyers who are looking for rehab projects. Thus, you?ll be matching rehabbers/contractors with properties in need of rehab. However, when the phone starts ringing, you?ll need to distinguish the type of homes each potential buyer wants. For instance, some might want 4 bedroom, 2 Bath, high-end rehabs, while others will want your basic ?bread and butter? home, 3 beds and 1 bath. Also for the second advertisement, you?re looking for landlords. Additionally, you?ll need to identify the different areas each buyer will consider.

You may also run an ad like this:

Stop Renting-Starter Homes Available-Mint-Discounted Prices Call XXX-XXX-XXXX

These buyers might be your owner-occupants that are currently renting that you?ll add to your buyers list. Part of your strategy here might be buying, rehabbing and selling them yourself.

Of course, running one ad might be most economical:

Deep Discounted Properties for Sale, Home Buyers, Investors Call XXX-XXX-XXXX

Now, how do you determine what each investor/buyer wants? You may ask the following questions:

What type of property are you looking for?
Specifics? (# of bedrooms, baths, rooms)
What locations are you primarily interested in?
Have you closed on properties in these areas before?
What are your overall objectives for properties you buy?
What is the ideal return on investment you?re looking for?
What type of rentals do you prefer?
How do you continue to grow your customer base (the amount of people you can sell a property to)?

Well since money is always the bottom line and not all buyers have cash to buy (and you should never expect or rely on that solely), expanding the pool of investors and buyers you can sell to comes down to having contacts. If your buyers don?t have the contacts or the cash, you will need them. So four simple things you should do are:

Make contacts with good mortgage brokers and use them to qualify buyers
Make contacts with good hard money lenders to qualify investors (noobs)
Make sure these brokers and lenders can close deals quickly
Make sure you know the process inside and out so you can expedite the process
Lastly, you may look for ads that offer rehabbed homes for sale. For example, if you see a for sale ad that says, ??renovated? or some variation, call that number and begin the process of adding that individual to your buyers list. Visit the property to get a completely true feel for what they look for. This can be a very effective way of getting investors who are actually involved in performing on a contract because they already have demonstrated the ability to do so!

Always remember that you?re running a business. Every successful business has a well-defined strategy for marketing, sales and growth. Real estate investing is no exception!

?2006 noobdogs.com

Real Estate Investing - Matching Buyers with Properties

One of the things you have to consider as a real estate investor is matching buyers with properties that you acquire. When you develop a buyers list for your properties, whether you?re trying to wholesale or rehab, you will find that the simple saying, ?Different strokes for different folks,? applies. Some of the different ?strokes? might be low-end rentals, high-end rentals, multiple unit rentals, and rehabilitation projects.

The different ?folks? will often match these properties. For every investor, there is a niche they specialize in. If you want to wholesale properties, it?s up to you to offer the greatest spread of properties to fellow investors. Also, you must take into account, your regular home buyers (owner-occupants).

Part of any building block of a business is to identify the target market. For instance, with this site, we identified the people who would be visiting it most likely. We tailor the articles with content that is basic in order to meet the ?customer? needs. We don?t overload the articles with complexities, but we do offer the basic 1-2-3 steps for beginning a real estate investment business or a business in general. Part of this required developing a ?character? for our visitors. In doing this, we are constantly developing new avenues of interest that we think our visitors will benefit from, including hard money financing (coming soon).

So, for matching buyers with properties is to simply define what each potential buyer prefers. When you decide to advertise for buyers, you might put out ads like this:

Deep Discounts-Properties need Rehab, Priced to Sell, Call XXX-XXX-XXXX

or

Excellent Cash Flow Rentals offered at Discounted Prices, Call XXX-XXX-XXXX

This may attract buyers who are looking for rehab projects. Thus, you?ll be matching rehabbers/contractors with properties in need of rehab. However, when the phone starts ringing, you?ll need to distinguish the type of homes each potential buyer wants. For instance, some might want 4 bedroom, 2 Bath, high-end rehabs, while others will want your basic ?bread and butter? home, 3 beds and 1 bath. Also for the second advertisement, you?re looking for landlords. Additionally, you?ll need to identify the different areas each buyer will consider.

You may also run an ad like this:

Stop Renting-Starter Homes Available-Mint-Discounted Prices Call XXX-XXX-XXXX

These buyers might be your owner-occupants that are currently renting that you?ll add to your buyers list. Part of your strategy here might be buying, rehabbing and selling them yourself.

Of course, running one ad might be most economical:

Deep Discounted Properties for Sale, Home Buyers, Investors Call XXX-XXX-XXXX

Now, how do you determine what each investor/buyer wants? You may ask the following questions:

What type of property are you looking for?
Specifics? (# of bedrooms, baths, rooms)
What locations are you primarily interested in?
Have you closed on properties in these areas before?
What are your overall objectives for properties you buy?
What is the ideal return on investment you?re looking for?
What type of rentals do you prefer?
How do you continue to grow your customer base (the amount of people you can sell a property to)?

Well since money is always the bottom line and not all buyers have cash to buy (and you should never expect or rely on that solely), expanding the pool of investors and buyers you can sell to comes down to having contacts. If your buyers don?t have the contacts or the cash, you will need them. So four simple things you should do are:

Make contacts with good mortgage brokers and use them to qualify buyers
Make contacts with good hard money lenders to qualify investors (noobs)
Make sure these brokers and lenders can close deals quickly
Make sure you know the process inside and out so you can expedite the process
Lastly, you may look for ads that offer rehabbed homes for sale. For example, if you see a for sale ad that says, ??renovated? or some variation, call that number and begin the process of adding that individual to your buyers list. Visit the property to get a completely true feel for what they look for. This can be a very effective way of getting investors who are actually involved in performing on a contract because they already have demonstrated the ability to do so!

Always remember that you?re running a business. Every successful business has a well-defined strategy for marketing, sales and growth. Real estate investing is no exception!

?2006 noobdogs.com

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!

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