Archive for the ‘Real estate’ Category
Stepuptofortune.com has been building a real estate mortgage team that works together well and functions efficiently is one of the best tools that you can provide to creating a successful real estate or mortgage company. Before you begin building a real estate mortgage team, make sure you know all the key players. 1. Originator. 2. Price and place. 3. Processor. 4. Banking products. Each of these key players must be able to work together, having the same end in mind in order to be successful. Building a real estate mortgage team can be mutually beneficial to the consumer and to the real estate agent or loan agent. Once you’ve begun building a real estate mortgage team, keep in mind the goals of that team and the information necessary to keep that team running at peak efficiency. Make sure that you know the changing mortgage guidelines. One of the biggest complaints that consumers have about patronage of real estate and loan combinations is that the real estate agents sometimes seem to be in over their head when it comes to mortgage lending. Keeping your real estate agents in the know when it comes to factors like changing mortgage guidelines, FHA loans, FHA marketing ideas, or federal regulations regarding mortgage interest and processing can go a long way to instilling confidence in the consumer. Building a real estate mortgage team is only the beginning of the service that you provide to your customer. Keep your team up to date and educated on the local marketing trends as well as the national market trends. The more education and specialized knowledge in the fields of real estate and mortgage lending that you have, the more appealing your company will seems to your target audience. Remember when building a real estate mortgage team that in order to retain your customer base, the customer must feel like your real estate mortgage team has their best interest in mind. Providing the highest quality service can go a long way to establishing good customer relations which can lead to referrals and a long-term client base or repeat customers.
Fremont, California, is located in Alameda Count and 17 miles NW of San Jose, California. Fremont has a population of 203,413. Though the fourth largest town in the San Francisco Bay Area, Fremont retains its small town, friendly atmosphere. Fremont’s proximity to many Silicon Valley companies, and its own position in the East Bay make Fremont a desirable place in which to live. Residents enjoy the natural beauty of the area, including sailing on Lake Elizabeth and outdoor sports. Institutions of higher learning include Ohlone College, a local community college. Fremont boasts a highly successful school district and a very diverse local population.
Fremont Homes
Fremont properties pool is 68,237 residential properties including Fremont new homes. The median age of real estate in Fremont is 1975. The average household size is 3.34 people. 3% are one bedroom homes, 14% are 2 bedroom homes, 42% are 3 bedroom homes, 33% are 4 bedroom homes, and 6% are 5+ bedroom homes.
Fremont Mortgage Statistics
Homes With No Mortgage 14%
Homes With Mortgage 86%
First Mortgage Only 65%
First & Second Mortgage or HELOC 21%
Fremont Area Real Estate Tax
Fremont Real estate Tax: Median Real Estate Taxes (2000) were $2,412 comparing to 1999 Median Family income $ 82,199. Compare to USA median yearly Real Estate Tax $1,300 and USA median Family Income $42,000 (1999).
Fremont School District: Children make up 25.8% of Fremont population. Fremont has 52,452 under 18 years old residents, or 0.52 kids per one worker, or 0.77 kids per one household.
Fremont Real Estate & Fremont Homeownership
There are 11600.29 or 17% one person households, 20471.1 or 30% two person households, and 13647.4 or 20% three person households in Fremont, California. Median residents age is 34.5, Senior citizens (65+) make up 16,967 or 8.3%% of Fremont population.
There are 100,215 workers (over 16 years of age) in Fremont. Of these, 89.8% drive to work. Approximately 5.01% of workers in Fremont take public transportation. An estimated 1.09% walk to work. There are eight major business districts in Fremont, most of which house technology companies, but also small and independent businesses. These include the Ardenwood Business District and Niles Business District with charming antique shops and ethnic restaurants.
Median Fremont homeowner’s housing expenses are 22.5%
Crime in Fremont (2003), crimes per 10,000 residents per year
Violent Crimes 21.29
Robberies 6.88
Aggravated Assaults 12.63
Property Crimes 279.87
Burglaries 52.06
Larceny-Thefts 190.55
Motor Vehicle Thefts 37.26
Invest in Fremont Properties
When making a decision about buying real estate in Fremont California area, you should consider following statistical data:
Near Medium City
Near Large City San Jose, California
Fremont Zip Codes 94536, 94538, 94539, 94555
Fremont Area Codes 510
White population 47.67%
African-American population 3.1%
Asian 36.95%
American Indian & Alaskan
Hispanic (of any race) 13.47%
Median Family Income (1999) $ 82,199%
Population Below Poverty Level 5.37%
The real estate industry is a competitive one, and as a player in that market, you’ve got to play every edge that you can find. You’ve got your listings on MLS, submitted your ads to the newspaper classifieds, bought space in local realty For Sale magazines and even set up your own website. Now you need to maximize your exposure by getting the word out about the service that you offer. Listing your real estate related web site with a real estate directory is an excellent way to help drive targeted traffic to your website.
<strong>What’s ‘targeted traffic’?</strong>
Targeted traffic is what you want to make it worth while having a web site. The prettiest web site in the world is only useful if it provides leads for your sales. In order to do that, you need to attract traffic – and not just any traffic. You want web site visitors that are looking for what you’re selling – whether it’s homes, inspections or contractor services.
<strong>How to Get Targeted Traffic</strong>
You COULD just submit your web site to the search engines… and watch your listing get lost in the thousands of realtor, real estate, house for sale, sell houses and other realty-related web sites. Most web experts agree that in order to benefit from search engine traffic, your listing needs to appear in the first three pages of the search engine results.
There are ways to boost the flow of targeted traffic to your web site – and on the World Wide Web, increased traffic means increased sales. A real estate directory can help boost your real estate sales in a number of ways.
<strong>Why List Your Realty Site with a Real Estate Directory?</strong>
On the web, fewer means more. When you rely on Google and Yahoo! and MSN searches for your traffic, you’re a tiny minnow in the ocean. There are literally thousands of other real estate sites competing for a spot in those first three pages. Want to be a big fish in a little pond?
A listing on the right real estate directory will put you where your potential customers and clients will see you – on a site that’s designed for people who are looking for information about what you sell. Suppose you buy foreclosed homes in California. Because a real estate directory categorizes its listings, your potential clients don’t have to wade through three pages of listings for real estate agents and home mortgage companies to find your listing.
Because the real estate directory has links to and from many web sites that are relevant to real estate, it’s far more likely to rank higher in the page results than any single-realtor site. When you submit your web site to a real estate directory, you’re leveraging the popularity and page ranking of the directory to bring traffic to your web site.
How a real estate directory boosts YOUR web site’s ranking
But you’re also helping to boost the position of your own web site in the rankings. Because many search engines count the links to your web site to establish the popularity of your web site, every link from an outside site gives yours a little boost. Even more importantly, when a web site that Google recognizes as an authority links to your site, you get an extra little bump up in the listings.
Reciprocal links, search engine submissions and submissions to directories are all important pieces of your web presence and marketing. By paying close attention to them all, you’ll find that your web site pays off in increased sales.
Locating financing for every commercial project is not always an easy feat. Many items can affect the acceptance of a loan, how much is loaned, and under what specific terms the loan is given. As a commercial real estate insider, it is important to always be completely prepared when approaching a lender, whether it is a commercial bank, savings and loan company, or a private investor.
The key to success in commercial real estate is maximizing all aspects of the business. This includes resources, energy, time, return on investment, as well as financing. Without good financing and a dependable lender, commercial real estate is not a business to be in, unless, of course, you have your own multi-million dollars lying around just waiting to be invested. In some cases this may be true, and congratulations! However, for most of us, we rely on other people’s money (OPM) to build the wealth and riches we dream about every day.
In order to get the financing you need absolutely every time you apply for it, you must take some necessary steps and precautions that prove your project is worthy of the money loaned to you.
I must insert here, that because of the amounts of money that are loaned in commercial real estate, almost everything can be non-recourse, and written that way in the contract. Non-recourse means that no one must personally sign for the loan. In fact, the borrower is often secondary to the actual property and project in question. The property acts as the guarantor of the loan. After all, this is where the actual money and value lies, not in the borrower’s pockets.
Always remember that the property is responsible for returning the money loaned to the lender, because that is where the value is found. The lender must trust the borrower and his or her assessment of the property, its intended use and projected income or profit of the property in order to feel completely comfortable with loaning the money.
So what are some steps and precautions you need to take in order to yield the results you want with the lender every time?
What you want to do is build a development or loan package for every property for which you want money. This package is much like a business proposal, and must be done professionally, accurately, and clearly. This loan package should have everything the lender needs to make a decision whether or not money should be lent on the project.
The most important aspect of this loan package is the reason for the loan. Generally, it must be a solid, economic reason that shows the income projected and exactly what funds will be available to pay the lender back. After all, the number one concern of the lender is that the loan will be paid in full, with the interest agreed upon in the contract.
This economically solid reason may be shown through income and expense sheets, comparisons to other properties similar to the one you will be working on, and any other important economic information that proves you can pay the money back.
Because every project is different, it may require varying criteria that must be met. For example, if it is a corner lot for a shopping center, traffic counts, whether or not there is a light on the corner or a four lane road, and the location of the closest residential development that will support this shopping center area are all facts that must be included in this loan package. Population, growth, any future changes in infrastructure that might affect your project and so on must all be addressed, as it is necessary to your specific project.
Bottom line, you must have every ounce of supporting detail regarding your property, project and projected income. This loan package should be like you are optioning your first born child, and he means everything to you. I know this simile is extreme, but that is how money is borrowed by the commercial real estate insider.
Impress the lender with a profitable project, quality and accurate information, and you will get your money.
Many lenders, especially if they are local, may know an area well, and will automatically be able to assess your project as something they will or will not support. There may be other lenders that are thousands of miles away, and know nothing about your area of interest. The distance of the lenders can affect the feasibility of a project, and some would say you would not need to provide as much information for the local lender as you would the far distanced lender. However, I say, if you want the money, do it the same for each lender.
Look at it this way. If your local lender does not finance the project, then you can easily transfer your loan package to another lender no matter where they are located.
Consistency in quality will earn you a reputation as someone to do business with. This is exactly where you want to be in this business: reputable, honest, and one good real estate insider.
As you increase the amount of financing you need, build rapport with the lenders you have and will work with. Always present yourself to these lenders in a professional, intelligent manner, and be perfectly prepared to do business.
Always follow a specific lender’s application process and guidelines. If you do everything the way they want you to do it, they look to you as someone who is dependable and willing to make things easy and straightforward, without a lot of road blocks along the way. The smoother you can facilitate the process, the more likely you are to get the money you need.
Lenders are concerned with one thing, making profits by getting their money back with interest. The object is simple. Show them your project can do this, and you will get your money. Have a defined amount of money you need, and stick to it. Don’t ever be wishy-washy, and stand your ground on what it is you want to accomplish.
Maximizing your financing is an asset to the commercial real estate insider. Your ability to conquer more and more opportunities relies greatly on your ability to get funding; so master this skill, and you will be on your way to a real estate fortune!
Follow a few simple guidelines, and marketing your own home can be easy. And it will save you thousands.
The recent property boom has a lot of people thinking of selling. Unfortunately, the costs of selling can really eat into your profit. There’s nothing we can do about stamp duty, but one cost we can avoid is real estate agent fees. By selling your house yourself rather than paying a real estate agent, you can save you around $20,000 on a $500,000 sale.
So what’s involved in a do-it-yourself sale? The two main ingredients are time and advertising. A quality ad and a couple of hours each week fielding phone calls and managing inspections can mean the difference between a healthy profit and disappointment.
Many people are intimidated by the marketing aspect of selling their home. But there’s really not that much to it. You just need to write a description of your property, organise photography, and place an ad. Simple!
Perhaps the most important thing to remember when organising your own sale is you’re not selling a building – you’re selling a home and a lifestyle. Here are 10 Tricks of the trade to get you started…
1) Jot down your favourite spots in the house and what you like to do in them.
2) List your favourite local restaurants, cafes, and beaches – especially those in walking distance.
3) Note any pleasant fragrances – plants like jasmine and gardenia, or evening sea breezes.
4) Mention your favourite spot for a morning coffee, an afternoon snooze, or an evening wine.
5) Write about 150 words.
6) Don’t include cars, garbage bins, or the road in your photos.
7) Tidy your house and remove any clutter before taking inside shots.
Capture colour both inside and out, but keep it simple.
9) Take digital photos and save to CD so you won’t need a bureau for scanning and production.
10) Invest in a prominent newspaper ad and make use of the Internet.
Even if you don’t feel up to the challenge of creating a masterpiece ad, you can employ the services of a professional for far less than the cost of a real estate agent. A professional copywriter will write an engaging description for as little as $250. Professional photographers do real estate all the time. Neville Prosser (http://www.nevilleprosser.com.au) can give you all the captivating photos you need for just $330. You can get a glossy 1/8 page ad in the Central Coast Express Advocate for $628 or a ½ page ad $2514. And to advertise online at Domain.com.au will only cost you $165 for a full month.
Whether you do all the creative work yourself or employ a professional, you’ll still save thousands. What’s more, with great advertising, you’ll interest more potential buyers and maybe even sell your house for more.
The most important thing to remember at every step along the way is… Average advertising conveys a building. Quality advertising conveys a home.
From Market Movement: If the real estate market declines how can you make money in it? The make a profit on any market (real estate, products, stocks and bonds) simply must be in motion. It must increase or decrease.
A stable market is one you do not turn a profit. The key is handle the procurement and sale of shares in both markets. For example, when the Nasdaq was experiencing its own bubble it there were people who made millions of dollars simply by adjusting their investment model adjustment on the current market.
Obviously investors who bought at the top rated and just hung over their stocks have lost a ton of money. The various types of knowledge and understanding of trade as well as risk management may be useful in the current real estate bubble of Th
Control Reality: No body can not predict the future. If a friend or even a financial adviser tells you a particular investment is one thing sure not. That is far more true in trying to predict market movements whole. It is easily seen if the value of stocks is diminuante or increasing and certainly it is obvious if the market shows the strange behavior. However, forecasting when the market will change, for better or worse, is more complicated.
Warren Buffet believed that the market was evaluated by years of surplus so before he finished the value has been corrected. Warren has an interesting approach because it was a value investor and therefore he stayed on key lines. However, most active traders are doing their money for a decrease in the market. One or the other approach can be successful once applied to the real estate bubble.
Correction market: There are several ways in which the surplus estimated launched on the market can be corrected. Many investors claims that the price to win the report on the real estate market is imbalanced. The price to win the report refers to the ration of rent collected for a year against the price of purchase. A report should be normal around 150.
However, currently there are some sectors were the ratio is 400. Outside the balance win the report can be corrected by dropping prices, rents increase, or the mating of the two. In addition to the true market may fails to correct anytime soon, some financial experts believe it may be 20 years.
Question: You want to change the market (20 years?) Or do you adjust your investment model and make money now? Remember financial advisors next phase of the currency that investment is about risk command regarding your potential gain.
For example, there are currently several cases where construction of a new real estate investor with little capital ($ 2000) or less can go down a salary of $ 40,000 or more. Obviously, if no investor is only out of the original investment. The bottom line is that if you follow these simple steps, you can also learn how to invest in markets that others perceive as dangerous bubbles!
Commercial real estate has many tools that can be used to maximize one’s return on investment (ROI). Among the many tools to choose from, leverage is one of the most effective ways to limit (or omit) the amount of personal money you put in a deal, and see the highest return possible.
In order to understand leverage in commercial real estate, you must completely understand what it is, and the main factors that determine if leverage is positive or negative. Unfortunately, if not prepared properly, leverage can completely destroy the income producing capabilities of a property and leave the owner’s income in the red.
Using leverage to your advantage can mean more effective investments every time, either allowing you to do less deals per year, or greatly increase your wealth in a short amount of time.
Leverage is magic in commercial real estate.
Leverage is directly related to the amount of money borrowed on a deal, compared to the current value and potential value of an income producing property. Leverage occurs when money is borrowed at a certain interest rate that is less than the rate of return on a commercial property. Let’s look at this transaction in detail to see how the investor can limit the amount of personal capital put into a deal versus the money returned by the property.
There are many different styles and purposes of purchasing property, and none of them are wrong, or better than another. It is simply reflected by the investor and his or her intentions. However, for the most part, the least possible amount of personal money that can be invested in a deal means larger returns.
Why? Because when you borrow $500,000 on a property at a 6% interest rate amortized over 25 years, you are paying the principal amount every month, which is covered by the income of the property. By paying to borrow the money, you can literally leave your money in the bank (or put it to some other asset producing use), have the property pay for both the loan and interest, as well as return a huge sum of cash, which only adds to your personal wealth.
If you had used your personal money, that amount would have to be subtracted from the total amount earned, as opposed to only a fraction of the money borrowed.
Positive leverage is when the interest rate of the money you are paying to borrow is less than the investment’s return percentage. A great amount of cash can be found in this difference. The higher performing the property, the more money is to be made.
In order for this to happen, leverage must be accompanied by a loan with long payment terms and a fixed interest rate that is amortized in equal payments over the life of the loan. It is true that these terms are not always available. However, there are many commercial public and private lenders that are willing to negotiate terms in order to see a sound return.
When a loan has a long life, a fixed rate, and equal monthly payments, the principal reduction increases after every payment, while at the same time, the interest amount is decreased. This occurs when the same amount is paid every month, causing the principal amount to be paid lower, so, in turn, the total amount of interest is decreased. You continue to pay the principal amount at a lower interest payment every month.
When your property is leveraged properly, you have plenty of time to pay off the loan, and cash is generated by the property to pay off the loan as well as give you maximized returns on investment. Your money does not even have to be involved in this process, because the income covers the borrowed money, the interest and your return as well.
It is really amazing to see how this simple math can mean such huge results for the commercial real estate investor.
Leverage can be dangerous, however, especially if the property does not perform as intended, and it does not produce the cash necessary to cover the loan, interest, as well and your return on investment. When the investor owes more than the property is worth, the property is considered over-leveraged, and this is a dangerous situation for an investor to be in. Money can be lost, and personal money may have to be used to keep the property performing. The investor may not be able to pay the interest and principal in a timely manner, causing the property to go into foreclosure.
Leverage must be taken seriously, and the mortgage market must be carefully watched, especially if the loan terms are adjustable-rate instead of fixed rate.
Use leverage to your advantage to yield the most money from your investment without even investing your own money. Do be aware that leverage can go in a negative direction. Be sure to have accurate and supportive income forecasts so that you know the loan will be covered, as well as the return you expect to gain from the property.
Many people tend to get caught up in real estate trends reported in magazines, newspapers and on television. This is a mistake of the highest order.
Why You Should Ignore Trends In Real Estate
In this modern information age, you can learn just about anything on a particular subject. While access to information is usually a positive development, things can get a bit crazy if you get overloaded with it. Look long enough and you can find two pieces of information offering exactly the opposite views on a subject. Obviously, that doesn’t really help you make a choice.
In real estate, the information offered in the media is usually uniform. For the last six or seven years, everyone with any brains at all has reported the real estate market has been hot. Now, many of these same pundits are suggesting the market is cooling off. Some are even predicting a crash in the market.
As a potential buyer or seller, how should you evaluate the information being produce in the media? The simple answer is you should ignore it. The problem with these reports is not the accuracy. Instead, the problem is they are reporting national trends in real estate.
National trends are great and all, but they have little or no application to your specific area. Consider the following if you do not believe me. The real estate market for the last few years has been reported as hot, hot, hot. In Colorado, however, the market has been flat throughout this time. If you were considering buying or selling in Colorado, the information being provided for national trends simply did not apply to you.
If you think Colorado is the exception, it is not. The state with one of the worst appreciation rates over the last four or five years, for instance, has been Texas. Put in practical terms, this means homes in Dallas, Houston, Denver, San Antonio and Houston have not followed national trends. The only real estate trends that matter are those in your local markets. Never rely on national data.
If you are considering buying, you have to be very careful when considering real estate trends. If it looks like a seller’s market in your area, you may make the mistake of not buying. Even in a seller’s market, buying a home is better than renting. Every day you are in the home is a day you are growing your personal wealth through equity accumulation. Don’t stay out of the market simply because you feel it isn’t the right time.
It is easy to get caught up in real estate trends since they are plastered in front of your face on a daily basis. In truth, they really should not play much of a role in your decision making process.
Burbank, California, is located in Los Angeles County, and is nine miles north of Los Angeles, California. Burbank has a population of 100,316. Among its residents are those who work in the media and entertainment field. NBC, Warner Studios, and Disney Entertainment call Burbank their home. The city is served by Burbank International Airport.
Burbank’s homes consist of luxury homes in the hills, and single and multi-family homes throughout the city. Its sunny weather, prosperous economy, relative safety, and consistently high-ranking schools make Burbank a popular place to live, especially with families and those in media and entertainment.
Burbank properties pool is 41,608 residential properties including Burbank new homes. The median age of real estate in Burbank is 1956. The average household size is 3.14 people. 7% are one bedroom homes, 39% are 2 bedroom homes, 42% are 3 bedroom homes, 10% are 4 bedroom homes, and 2% are 5+ bedroom homes.
Homes With No Mortgage – 26%
Homes With Mortgage – 74%
First Mortgage Only – 56%
First & Second Mortgage or HELOC – 18%
Burbank Real estate Tax: Median Real Estate Taxes (2000) were $1,640 comparing to 1999 Median Family income $ 56,767. Compare to USA median yearly Real Estate Tax $1,300 and USA median Family Income $42,000 (1999).
Burbank School District: The Burbank School District consistently rate as one of the most successful in the County. Parents are keen to purchase homes here in order to send their children to the highly successful District.
Children make up 22.3% of Burbank population. Burbank has 22,337 under 18 years old residents, or 0.46 kids per one worker, or 0.54 kids per one household.
Burbank Real Estate & Burbank Homeownership
There are 14146.72 or 34% one person households, 12482.4 or 30% two person households, and 6241.2 or 15% three person households in Burbank, California. Median residents age is 36.4, Senior citizens (65+) make up 12,859 or 12.8%% of Burbank population.
There are 48,430 workers (over 16 years of age) in Burbank. Of these, 89.33% drive to work. Approximately 2.56% of workers in Burbank take public transportation, reflecting the area’s over reliance on cars. An estimated 2.75% walk to work.
Median Burbank homeowner’s housing expenses are 22.4%
Crime in Burbank (2003), crimes per 10,000 residents per year
Violent Crimes – 28.21
Robberies – 6.88
Aggravated Assaults – 19.54
Property Crimes – 268.55
Burglaries – 49.84
Larceny-Thefts – 172.26
Motor Vehicle Thefts – 46.45
When making a decision about buying real estate in Burbank California area, many factors should be considered, along with the following statistical data:
Near Medium City -
Near Large City – Los Angeles, California
Burbank Zip Codes – 91501, 91502, 91504, 91505, 91506
Burbank Area Codes – 818
White population – 72.18%
African-American population – 2.06%
Asian – 9.15%
American Indian & Alaskan – {-}%
Hispanic (of any race) – 24.87%
Median Family Income (1999) – $ 56,767%
Population Below Poverty Level – 10.45%
Real estate investing is always good and sometimes it’s red hot. When it’s hot dozens of real estate seminars begin rolling across the country and thousands of people spend thousands of dollars for investing education.
It’s startling to learn that of all those thousands of eager folks who attend these seminars only about 5% buy even one investment house. Why? The real estate gurus sell the “sizzle” and make profiting from real estate sound easy. The truth is that it’s simple, but not easy.
Here’s a quick plan that will enable anyone to begin building financial independence.
There are basically four steps to investing in single family homes:
1. Buy homes below full market value. Yes, people really do sell homes for less than the home’s full value. The key is to understand that most home owners will only consider a purchase offer that is all cash and within 5% to 10% of their asking price.
The successful investor learns to find financially distressed home owners who have no choice but to sell for less than market value. They have lost their job or been suddenly transferred; they are divorcing; they been living beyond their income; the family has been overwhelmed with medical bills and, not uncommonly these days, their money has gone to support a drug habit.
Those are examples of motivated sellers. They have to sell and they will accept something other than a conventional, all cash offer.
2. How do you find motivated sellers? You work at it! Like any business it is important to develop a little marketing plan. One that is simple, yet very effective, is the one that was proven 75 years ago by the Fuller Brush company; door to door sales.
You are selling your skill as a home buyer to people who must sell. Your are there when they need you and you have the skill to help them solve at least part of their problem. With door to door prospecting you will learn more and buy more homes quicker than any other method. However, most people just won’t walk door to door for three or four hours per week. OK, there are other ways.
You can watch public notices for the announcement of foreclosure sales. Meeting with a home owner right after they’ve received a notice that they are about to lose their home allows you to deal with a very motivated seller. Other public notices that provide buying opportunities include probate, divorce and bankruptcy. You can follow the Homes For Sale listings in your local newspaper or Internet site.
You can telephone the names found in these notices or, and this is the least time consuming, send a postcard expressing your interest in buying their property. It will produce buying opportunities, just not as many as personal contact.
3. After you’ve found a motivated seller you must understand how to frame offers that provide benefits for both you and for the home owner. A good real estate investor quickly learns that this is not a business of stealing property, but of solving problems in a way that benefits the seller.
The home owner is in a tight spot of some kind and you can save them from public embarrassment and, in most cases, give them at least a little cash to get a new start.
No investor can afford to leave cash in every deal. No one but Bill Gates has that much available money. You must use creative techniques like, leases, option and taking over mortgage payments. Little or no cash is needed for those deals. You can find plenty of reasonable priced educational material on those subjects in book stores or on EBay. The same education that seminars sell for thousands of dollars.
4. You make your profit when you buy! Never make a purchase until you’ve carefully determined exactly how you will get to your profit. If you hold it as a long term investment will the monthly rental income more than cover the monthly mortgage payment? Will you sell the deal to another investor for fast cash? Will you do some fix-up and sell the property for full value? Will you quickly trade it for a more desirable property? Have a plan before you buy.
There you have four steps that even a part-time investor can execute in three to four hours per week. What’s the missing ingredient? Your determination and perseverance. If you will unfailingly follow the plan for a few months you will be well on your way to financial independence.
