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Commercial Real Estate

How to Start Real Estate Investing

Many are turning to real estate investing with the hope establishing a new way to make money. Some invest because they are tired of their current career and have set their sights on becoming a full-time investor and CEO of their own real estate investing company; others just want to supplement their income, perhaps in anticipation of retirement.
Whatever the reason, thousands of people have become real estate investors in the past several years and are achieving their goals. If you want to take advantage of this industry, you should consider getting started today.
Real estate investing success is not guaranteed, but at the same time, becoming an investor is not difficult to do if you develop a plan and stick to it. Obviously, you must decide on how money you’re willing to risk on any investment, what types of properties you want to invest in, what rates of return you desire, is your plan to fix and flip property or are seeking to hold them as rentals, and so on. Moreover, consider carefully whether you will be able to devote the time to it along with handling the added stress.
If all systems are “go” and you are adequately prepared with a reasonable plan to start real estate investing, begin with caution. Do everything in your power to minimize the risk for the first property you purchase. Getting off to a good start is a great way to get your feet wet and helps ensure that your investing career is on track. Don’t expect to make a ton of money on your first investment, but be sure you crunch the numbers before you purchase and are certain you can make a profit.
Along these lines, it is highly recommended that you purchase a good real estate investor software solution to help you crunch the numbers. If you are proficient with spreadsheets, you can develop your own solution, but given the affordability and depth of rental property analysis provided in some investment software solutions, you would be wiser to purchase the software and to invest your time into finding profitable properties.
Becoming an estate investor may be the best move that you ever make because there is money to be made in the real estate industry. But you must determine what type of investor you are going to be, understand what it is you hope to accomplish, consider all the risks, and then act. At the end of the day, real estate investing can indeed become the rewarding experience you desire.…

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Business Contractor

What Are the Secrets of Door Knocking in Real Estate Investing?

Door knocking for real estate investors is either an experience akin to a severe sunburn or a primary source of deals. The difference between investors’ sentiments about door knocking is the ones who hate it aren’t doing it properly or at all, and the ones who love it do it regularly. Learning a few basic secrets of this time-honored prospecting technique can be very profitable.
Door knocking is the actual process of going into a targeted neighborhood and one-by-one knocking on each resident’s door. Not only should the neighborhood be targeted for the type and price home you want to purchase, the homeowners can be targeted by finding out beforehand if they are in pre-foreclosure, divorce, bankruptcy or any other situation that would make them motivated sellers.
With a little pre-planning and basic development of a “script” of what to say to each type of targeted homeowner, this method of prospecting can be an investor’s most cost-effective and efficient format. I recommend that the door-knocker be dressed for success. This means no sloppy jeans and casual shirt, but preferably a logoed short with your company name and a neat and tidy appearance. You’ll only have 10 – 20 seconds to get out enough of a tickler sentence to get the seller’s attention so practicing what you will say is very important.
Most successful investors who use this method, will hire door-knockers to pre-screen the perspective sellers for them. The targeted prospects are kept for the investor training the crew, as these are much higher probability prospects. College and mature high school students are viable candidates for this job.
When a homeowner answers the door, the following strategies should be used:
1. Always take at least one step back to give the person answering the door a comfort zone.
2. Make sure you stick to your script! As an example, for people in foreclosure you might say, “Mr. Homeowner, I saw in the public record that your bank is trying to take your home and I wanted to see if we could help.”
3. If the person answering the door says they have it taken care of, just explain that you understand and that you will continue to follow their progress in the public record.
4. Give them a handout, even if it is a one page flyer, which explains what you do and why they should work with you. Short sales are always popular for foreclosure victims if they understand the process. Your brochure should convey these important benefits to them. Even if they don’t answer the door, you should leave your flyer.
5. Follow-up on the prospect’s progress, including going back to door knock if the property isn’t sold at auction or otherwise disposed of.
If you are invited into a property, always be careful. Use good judgment as one deal is not worth your life. Door knocking can work equally well in upper income neighborhoods as long as you don’t have to contend with gated or guarded communities. You should not be alone when you door knock for safety reasons.
In summary, door knocking can be humiliating or wonderful depending on your results. Never be intimidated or argue with rude people, it is not worth your time. Door knocking is possibly the single best source of getting deals quickly and at little or no cost. You’ll need persistence and fortitude to make it happen but the more you become experienced, the better and more effective your knocking will become.…

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Home

10 DO NOTS of Real Estate Investing

So you think you’re ready to start investing. You’ve read all the books, studied all the courses, and talked to all the experts. But just to make doubly sure that you don’t make the common mistakes that some, if not most, investors make, here is a list of 10 “Do Nots” you should absolutely try and avoid doing on your first or next deal.
DO NOT pay too much for the property, no matter how nice it is. Remember the lower you pay, the lower you can price it, the faster it will sell, and the sooner you will see profit!
DO NOT fall in love with the property. Once emotions get into the mix, it can affect vital cost efficient decision making.
DO NOT rush through a deal. Don’t cut corners, or take short cuts. Dot every “I” and cross every “T”.
DO NOT skip out on homework. Research the property to its fullest. What’s worst than buying a crack house in a bad neighborhood is paying too much for a crack house in a bad neighborhood.
DO NOT work with difficult people. If they were difficult in the beginning then most likely they will be difficult during and all the way through the end of the process. It’s not worth it. Walk away while you still have your sanity.
DO NOT bend over backwards just to make a deal work. Be willing to walk away and remember there are plenty of fish in the sea.
DO NOT underestimate the importance of marketing. Putting one measly little “For Sale” sign in the front of your property is not going to cut it. Use the internet, newspapers, flyers, whatever you can to spread the word and market!
DO NOT waste time on tire kickers. Make sure every potential buyer you show the property to or take time to entertain are actually qualified buyers who have a real potential to buy. Time is money, so don’t waste time on people with no money!
DO NOT be offended by low ball offers. Remember it’s all business, not personal. Plus you’d probably be doing the same thing anyways if you were in their position.
DO NOT get greedy. Once you’ve successfully closed a deal, know for certain that there are many deals out there to be had. So don’t try to get all you can from one deal. It’s better to close and profit with a few thousand or even just a few hundred dollars, then never closing at all.
And just a little bonus that’s probably one of the most important Do Not there is:
DO NOT GIVE UP! Remember, every “No” is one closer to a “Yes”. They need you more than you need them. You are a solutions provider. Now go and deal is waiting!…

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Property

Investing in Foreclosures – What Is the Best Method?

If you are new to the concept of investing in real estate, you would do well to learn more about investing in foreclosures. Before you get started, however, you need to get a realistic look at what is involved. The first and most important thing you need to know is that foreclosure investing is not for beginners. The profit potential associated with this investment opportunity is huge which is what makes people new to real estate so intrigued by it. If you have a few years of experience in real estate investing, this could be the right time for you to get involved in foreclosure investments.
There are three ways of investing in foreclosures. The first is buying pre-foreclosure. This is when you buy the property from the owner who as defaulted on their loan before it goes into the auction phase. This is a mildly risky option because of the things that can go wrong. The homeowner may disappear after making the deal or in their desperation they may lie about the condition of the property and the neighborhood in which it exists. If you fail to check out unpaid utility bills or property taxes, these become your responsibility once you buy the property.
The next option is to buy at auction. This is the riskiest choice because at the auction, you do not have a real estate agent backing you up. You have no escrow, no title report, and no title insurance. In most cases, the sale must be made entirely with cash and you usually have only a week to a month to raise the funds, all without ever seeing the property first. Sometimes, occupants will vandalize or steal property from the home before they leave in a last-ditch effort to relieve their frustration of being evicted. None of this is in your favor when investing in foreclosures.
The final choice is to buy from the lender after the auction. This is only a possibility when no investors bid in a foreclosure auction. When this is the case, the property falls back into the ownership of the lender. This is safest option of investing in foreclosures. A property at this point is known as repossessed or real estate owned. Many times, you can get the property for less this way because the bank will likely be eager to get the property off their hands. Plus, if anything goes wrong, you can take legal action against the lender instead of chasing a disappeared former tenant.…

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Land For Sale

Learn the 3 Steps to Successfully Investing in Real Estate Today!

During the boom period of real estate from 2002-2006, there were a lot of players in the real estate investing arena. The sad part is that many of these people really did not understand how real estate markets work!!! Also, they did not understand how to effectively invest in real estate. What many of them did during this period of time was to buy a property for top dollar today banking on it being worth more tomorrow when they sold it. The flaw with that approach to investing is that it does not work in down markets or in stagnant markets. It is not an approach that is sustainable in all real estate markets. It is more speculative in nature than anything else. Therefore, there are a lot of people who were hurt financially from the down turn in property values when the real estate market changed, because they owed more than the property was worth overnight.
A comprehensive understanding of real estate market shifts is crucial to staying a head of the curve in real estate investing. Even more important is understanding how to successfully invest in any real estate market. No matter, if it is up, down or stagnant, you can make money investing in real estate if you remember one key thing, you make your money when you buy, NOT when you sell!!!
With that having been said, let’s go through the three steps to successfully investing in real estate in today’s economy. Before we get into the steps though, we need to make sure you understand the situation we are in right now. Lenders have tightened their lending criteria, thus there are fewer and fewer people who can qualify for financing in this current market. Also there is a backlog of literally thousands of properties that need to be, pending, or have been foreclosed on throughout the nation. Translation is that we have tons of discounted and distressed properties and a limited number of buyers to buy them.
What does that mean to us as real estate investors? Well, we need to find the buyers first, then the properties and then make offers on these properties. Let’s go into more detail on what I just said here.
The first step to successfully investing in properties today is to find and qualify the buyers. The people who have the money or who can qualify for financing are the people we want to focus our efforts on. We want to gain knowledge in what they are looking for and willing to pay for that property.
Next, we will take that information out and start looking for properties that meet their criteria. We will find a plethora of properties that will meet their needs. The property and the numbers associated with this property will need to be evaluated in detail to see if it is a true fit or not.
If the property meets the buyers needs and the numbers work for them as well as us, we can then prepare and submit an offer on the property. No matter what is going on in the mark in the near future, we are running the numbers based on today’s fair market value, with deductions take for costs associated with acquiring and holding this property, repairs, and even profit. As you can see, we will have enough room built into the deal when we buy that we can sell for smaller profit or worst case scenario break even if the market shifts drastically downward. However, the best case scenario is that we can make a great profit on the property if the market shifts upward. Either way, we have structured an offer that helps us make sure we make money when we buy and possibly even more when we sell.
In conclusion, the three steps to success in real estate investing today are to find and qualify buyers, then find properties for these buyers, and then structure the offer based on today’s prices with the total costs associated with the deal subtracted. It is the most effective and efficient way of doing deals in this real estate market. You will find consistency in the process and the number of deals you can close within a period of time. Oh and it will considerably reduce your stress load too. After all, you no longer will have to worry about whether you will find a buyer in time or not. It’s now time to work smarter, and not harder.…

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For Sale by Owner

Bulk REO Investing

With the record number of foreclosures announced in the media, the opportunities are endless. One of the areas with great potential for profit is buying and selling bulk REO real estate owned foreclosure property. You may wonder what that is, let me break it down a little. Bulk means that the property is not a single piece, but a package of multiple properties.
These properties may consist of a block or even a neighborhood. Buying in bulk means saving, weather it is nuts and bolts or real estate, bulk usually means savings. REO stands for real estate owned. This property is still unsold after going through a foreclosure auction, a bank or mortgage company owns it.Understanding what bulk REO real estate owned foreclosure property is one thing, but why should you be interested in investing? Let me give you a few reasons.
1. Price – The price of these properties is much lower than the average market values. This provides an great opportunity for profit!
2. Lien-free – The sellers of the bulk REO real estate owned foreclosure property tries to make it as attractive as possible, which means the removal of existing lien from the property. This also lowers an investors risk in purchasing.
3. Less Work – Because these properties have already been through the foreclosure process and auction, they have already been appraised. This is one less task that needs to be done, saving both time and money. Often to lure buyers that bank or mortgage company will have already done needed repairs and improvements to the property prior to the failed auction, which less work for you as an investor. REO have also already been through the messy and time-consuming process of evicting the previous residents. There is also no auction to deal with as an investor can make an offer at any time. That means following your own investment schedule.
4. Less Competition – The fact that most people are unaware of bulk REO real estate owned foreclosure property provides for very little competition. Fewer competitors mean better prices and opportunity to obtain attractive and lucrative properties.
5. Inspection – Unlike many other foreclosure properties sales, bulk REO real estate owned foreclosure property provides an opportunity for inspection before you invest. This is an important feature because you have good intimate knowledge of the properties before you invest you money.
There is money to be made in this exciting field of investing.…

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Contractor House

Exhausted of Investing Money in Bonds and Stocks? How About Real Estate?

Are you one of the many people that have invested a small or large sum of money to countless stocks, bonds, or mutual funds? Has this subsequently increased money in your wallet, or has it only increased levels of anxiety? When people think of investment, they automatically associate stock market, bonds, loss of money. However, there are a number of entities that one can invest in. You may be surprised how many people invest in Real Estate despite the recent market crash. In an ever changing economy where stock markets and bonds are dropping at over a hundred points a day, Real Estate might be a great opportunity for safe investment. Why you may ask? Simple. Real Estate is necessary. Population is always increasing, and with that, the housing market is always in demand.
If you may be one of the few or lucky that investing in stocks and bonds have proved successful, then why is investing in Real Estate a better opportunity? First and foremost, whether the economy is in a recession or in economic good standing, the stock market will always fluctuate. Unforeseen problems within a business can always arise, and thus money invested in stocks and bonds is unpredictable, risky, and sometimes unsuccessful. Real Estate on the other hand, has a number of benefits:
First, inflation does not hinder the housing market investing business, only enhances the potential money to be made.
Secondly, constant cash flow. Although a stock pays dividends, the stream of income coming in from a Real Estate Investment exceeds the dividend yields on average. Moreover, the investor in real estate has less to lose. If and when your investment properties encounter a downfall in homes being sold, typically, properties monthly rent will stay constant.
Thirdly, as history proves, profit will increase due to appreciation. Within the last sixty years, research shows the ever increasing amount of an average person’s home in the economy. As the property value keeps increasing, so will the appreciation, and so will your investment profit.
A fourth incentive: tax benefits. As an investor of real estate, you qualify for a number of tax incentives: depreciation with no-out of pocket costs, tax deductions such as property, mortgage interest, and repairs for those who qualify, and according to the IRS, investors can sell properties without paying capital gain taxes as long as they exchange them for others of like kind (section 1031). Investing with IRA.
Need another incentive? Return on Investments. Often with stocks and bonds, finding out your ROI can be challenging. On the contrary, with investments in real estate, there are more ways to realize a greater ROI. Often times, return on investments can be 8%-12%. The higher the return, the better!
We are Real Estate Solutions Group located in Jacksonville, Florida. And we are helping investors all over country to invest in the housing market. If you are looking for an opportunity to invest in property but not sure what property to buy and where to buy, call us! Investing in the industry in Jacksonville is easy and safe. We buy distress properties, such as Short Sales and Foreclosures, for 30-60 cent’s on the dollar. What does this mean for you? Your investment with us has equity from day one!
Real Real Estate company should offer a full line of services for Investors, such as:
• Find homes and potential properties
• Renovating the properties
• Finding management companies, landlords, and tenants to care for the properties
We will do everything! Just sit back, relax, and anticipate your secured monthly income
Spending time, money, and increasing your stress due to lack of success in the stock markets is not needed. Real Estate Investment has proved successful and has benefited countless people in terms of cash flow, tax deductions, and increasing appreciation. The investment opportunities for some people has proved to be so successful that there incoming cash flow is not their second income, but their only income. No longer do you have to anxiously check the stock market every day to see the rise or fall in stocks, invest in Real Estate!
LEARN MORE ABOUT REAL ESTATE INVESTING OPPORTUNITIES!…