Margarette Anderson - REIWIRED.COM's blog

Investment Properties: Brand New Houses Vs. Previously Occupied Homes

To succeed in the real estate investing business, you have to carefully consider the type of properties you wish to invest in. As much as possible, you should avoid buying investment properties in random because if you do, you might find yourself stuck with a house with no equity. And what’s worst, instead of helping you rake in huge profits, the real estate properties in your possession are causing you to lose big money.

There are two types of residential properties that you can invest in for profit. The first one is called newly constructed properties. Brand new homes look nice and living in a place where everything you touch is fresh from the home depot store is truly an exhilarating experience for home buyers.

Investing in brand new homes is a great idea for real estate investors whose target customers are home buyers with lots of cash reserves. What’s great about buying and selling brand new properties is that you can rake in bigger profits. A disadvantage, however, is that new homes cost a lot. If you don’t have a huge investment capital, securing such properties can be a huge challenge.

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Another type of investment properties are previously occupied homes. Most real estate entrepreneurs nowadays are investing in “second-hand” houses because these properties help them minimize their expenses and provide them with good opportunities to make money in real estate.

If you’re on a tighter budget, you may also consider investing in distressed properties. These houses are way cheaper than conventional second-hand homes due to certain problems that are attached to them. Oftentimes, distressed properties are on the brink of foreclosure, which is why homeowners are willing to sell them at a much lower price.

Many rehabbers, or those who fix and flip properties, also prefer investing in such distressed homes. With the right amount of repairs and renovations, these investment properties can help them earn tons of money and generate positive cash flow.

A disadvantage of investing in previously occupied homes, however, is that if you’re not careful enough, you might purchase a property with hidden costs and other problems. Therefore, before you invest in a property, ensure that you have observed your due diligence. Doing so can give you the guarantee that you are betting your money on the right investment properties. You shouldn’t also forget to run comparable sales on the neighborhood where the house you want to buy is located.

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Investing in Real Estate: A Challenging and Exciting Way to Make Money

Challenges, they say, can build one’s character. According to singer and social activist Bernice Johnson Reagon, challenges in life shouldn’t paralyze you as it can help you discover who you truly are. So if you want to find out your true potential, you might want to take on a challenging, but exciting job, like investing in real estate.

Some people are saying that it is a bad idea to become a real estate investor nowadays because the real estate market and the US economy are in bad shape. However, this is not exactly the case as many investors are still making a lot of money despite such challenges. Therefore, you shouldn’t let other people’s fears get to you because only you can determine what lies ahead of you.

Investing in real estate is a great way to discover and hone your skills as an entrepreneur. In addition, it can give you lots of great opportunities to improve the way you live your life. Real estate investing also allows you to provide a better life for your families and loved ones.

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However, being a real estate investor is not a walk in the park. Because of the increasing interest of people in the real estate investing business, the competition has become tougher and stiffer. Therefore, if you want to get on top of the game, you should have an extensive knowledge on what it takes to be a successful wholesaler or rehabber of properties.

You can do this by reading various instructional materials and conducting research. There are numerous books on investing in real estate that are published today and most of them are written by veteran investors who have years of experience in the business. You can also take advantage of free online resources on the Internet such as videos, articles, and audio files.

You should also consider attending seminars and hiring mentors. By getting acquainted with some of the most successful people in the real estate investing business, you will learn how to overcome challenges easily. In addition, you can discover their secrets to success. And by having an experienced real estate investor guide you, you can easily know what to do in case a complication comes up.

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How to Avoid Being Scammed by Fake Real Estate Mentors

With lots of affordable investment properties in the market today, more and more individuals are becoming interested in investing in real estate. However, with the growth of aspiring real estate investor came the proliferation of fake real estate mentors and gurus. There have been numerous reports of newbie investors being scammed by fake coaches, which is why you need to be careful if you don’t want to fall prey to these unscrupulous people.

According to certain psychologists, one of the reasons why some real estate beginners are enticed by fake gurus is their “jackpot mentality.” Just like how ordinary people are being charmed by expensive diet pills that promise positive results in two days, aspiring inventors are being lured with promises of quick riches. They believe that if they spend their remaining dollars on such courses, they will automatically become millionaires.

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Real estate investing, however, doesn’t work that way. Bona fide and honest to goodness real estate mentors believe that real estate success can be achieved through patience, dedication, hard work, and constant self-improvement. According to them, the business of investing in real estate is not a magic pill that, when swallowed, will transform you into one of the richest people on earth.  It requires time and effort on the part of the investor.

Therefore, if you don’t want to be victimized by fake gurus and coaches, you should get rid of your jackpot mentality. Instead, look at real estate investing realistically and don’t fall for mentors who tell you that they can make you rich in less than a year without having the need to do anything.

Before buying a real estate course and other similar learning materials, be sure to check the product carefully and thoroughly. Because most of these courses are not really inexpensive, you have to ensure that you’re spending your money on educational tools that can really help you. You can do this by talking to people who have already purchased the product that you want to buy and learning from their experience. You can also surf the Internet as there are a number of websites and blogs that review certain real estate courses. The same thing can be done before hiring a mentor. You can ask the previous or current students of that mentor so you can be sure if that particular real estate coach can be trusted or not.

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The Secret to Real Estate Investing Success

Real estate investing is a rewarding activity that can give you great opportunities that can change your life. According to many real estate investors, however, investing in real estate is not a “get rich quick” strategy. They said that for you to succeed in this business, you should have patience, dedication, and commitment to your business. You should also use the right strategies to ensure huge returns on investment.

Speaking of strategies, one of the techniques to becoming a competent real estate investor is to find profitable properties. Contrary to popular belief, you make money in the real estate business when you buy properties, not when you sell them. That is why many real estate investors are going into great lengths just to ensure that will get only the best investment properties out there.

There are several factors that make a property profitable. The first one is its location. As we all know, a property’s location is very important in the real estate investing business because it can determine a house’s marketability. Therefore, before you buy a particular investment property, you have to ask yourself if the house can bring you a good deal.

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When buying investment properties, as much as possible, make sure that they have proximity to hospitals and schools, as well as to other important government facilities and commercial establishments such as restaurants, cinemas, and shopping centers. According to many real estate investors, such a strategy can help boost the market value of a property even before it has been fixed or renovated.

Cities or counties with upcoming urban development projects are popular residential destinations for home buyers. Therefore, you should watch out for places where entertainment centers, medical facilities, and other important infrastructure are expected to rise.

To get access to profitable properties when investing in real estate, you should get acquainted with as many motivated home sellers as possible. Motivated home sellers are great sources of investment properties because they are willing to sell their homes at discounted prices. Another strategy is to run advertisements and put up bandit signs. You can also drive around a particular neighborhood and look for vacant houses.

To become a successful real estate investor, meanwhile, you have to arm yourself with the right information about real estate investing. 

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Before You Sign Up for a Real Estate Seminar, Read This

Attending real estate seminars is a great way to broaden your horizons and expand your knowledge of real estate investing. However, before you swipe your credit card or spend your cash on such an event, you have to be sure that the workshop you’re going to participate in is really worth it.

Take the case of a former student of Donald Trump’s Trump University. According to an online news article I have read before, the female student sued the online education company because the school allegedly tricked her into spending $60,000 on “useless” seminars. The complainant said Trump University promised her a “complete” real estate education and a “one-year apprenticeship” through the program. Those promises, however, remained promises.

Personally, I think both parties are to blame for this mess. First, Donald Trump’s unaccredited vocational school shouldn’t make promises that it cannot keep.  It should have made terms clearer for its students. Second, the complainant should have known better than spending 60 grand on a real estate e-learning website.

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Although the “Trump” name is an established brand, she shouldn’t have remained complacent. She should’ve have checked first if she can recover her money in case she didn’t get the results she was expecting before she spent all that money. That way, she could’ve avoided a messy legal proceeding.

So for those who are planning to attend real estate seminars or signing up for similar programs, let this story serve as an example. Know your rights as a paying customer. And if you’re going to attend a seminar, see to it that the speaker or organizer has a good reputation and is really capable of providing good real estate education.

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Real Estate Investing: Finding the Best Investment Properties

Are you tired of making less money despite doing all the hard work? If you are, you might want to consider real estate investing. Being a real estate investor could be your ticket to a good life as it provides you with many opportunities to make a great income.

The formula to making it big in this business is obtaining great investment properties. According to seasoned investors, you make money in the real estate market when you buy a property, not when you sell them. Therefore, if you are going to invest in a house, make sure that it is highly profitable and can bring you a huge return on investment.

Real estate owned homes, or REOs, are considered by many as profitable properties. Also known as bank owned homes, REOs are properties repossessed by banks after their owners defaulted on their mortgage. They have undergone the foreclosure process but have failed to receive bids during public auctions.

Unlike ordinary foreclosures, REOs are in relatively in good shape. Most of the banks and lending companies that own them have a specialized department whose main task is to look after these properties. More often than not, these departments make sure that the REOs in their inventories are still in sellable condition. So if you want to make money through real estate investing, then you should consider obtaining REOs.

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If you think real estate investors only look at beautiful houses, you are sadly mistaken. Believe it or not, there are some who prefer old and ugly properties that have great location. The reason for this is that these investors, mostly rehabbers, can purchase such houses at a very low price. They make money by repairing and renovating the said properties before selling them at a price close to the houses’ full market value.

Meanwhile, to find the best properties when investing in real estate, you can search listings, surf the Internet, or check out bank inventories. You can also run advertisements on the newspaper because homeowners who want to sell their properties are likely to look for buyers on the local paper. You can also visit the neighborhood you want to invest in and look for vacant properties.

If done correctly, real estate investing can indeed grant you the financial freedom that you deserve. Just make sure that you invest in the right properties and play your cards right. 

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Why You Should Consider Wholesaling Real Estate

I think there are six great reasons why you should consider wholesaling real estate especially if you are new to real estate investing.

First, there is little or no cash required to wholesale real estate. While you can begin your wholesaling real estate career with absolutely no money, it does help to have a little money to use as earnest money (less than $100 in most cases) and some money for marketing to help find motivated sellers. Can you start wholesaling with a promissory note and do all no cost marketing, yes. Is it harder to do that, yes. Anyway you look at it though, you will not need tens of thousands of dollars for down payments or holding costs for mortgages when wholesaling.

Second, you can learn your market and the business while you earn some money. I wonder why some people get involved with rental real estate with very little knowledge of the business and especially their market when you can easily learn the market and the business by scouting out deals and wholesaling them to an experienced investor as they learn. With wholesaling you can begin to earn money and learn the business and your local real estate market at the same time.

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Third, you can build up your dream team members and network in advance. Having key team members in place can make the difference between success and failure. If you tried to wait to find a great real estate account or lawyer when you really needed one, it could be too late. That's why wholesaling is great; you can build your key dream team members and your network of professionals that will help you in your business as you start wholesaling.

Fourth, you can build your buyers list. It is crazy talk to think you can get involved with real estate investing and not build a buyers list in advance. Why would you ever wait to find a property and are making payments on it before starting to look for buyers. With wholesaling, you can build your buyers list, make contacts with other investors and bargain hunter owner occupant buyers while you are looking for wholesale properties.

Fifth, you can settle into your niche. There are lots of niches in real estate investing from single family homes to multi-units, from residential to commercial, from buy and rent to fix and flip and lots of variations in between. Wholesaling allows you to see what other investors are doing, learn the pros and cons of various niches and decide on what niche you will ultimately focus on. You may find you are attracted to only wholesaling in the end.

And sixth, you can learn how to generate immediate cash flow with confidence. Depending on the niche you focus on, cash flow challenges will very likely become an issue at some point. You need a way to be able to generate quick chunks of cash to keep your investments and business running. That's where wholesaling comes in for many investors and having the confidence of having wholesaled a bunch of deals for big pay days can ease the stress of the cash flow crunch.

In conclusion, the six reasons above are why I strongly recommend that everyone who is interested in real estate investing learn how to wholesale property--especially if you are just getting started.

Source: James Orr, EzineArticles.com

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Finding Properties to Flip

In the real estate investing business, the term “flipping” applies to the process of buying properties and quickly selling them for profit. However, because of the all the negative hype about flipping houses, many people believe that it is against the law. However, this is not really the case as there is absolutely nothing wrong with buying and selling real estate assets for cash. It is considered illegal only when an investor commits mortgage fraud.

To ensure bigger profits when flipping houses, one of the things that you should do is to buy profitable properties. It is common knowledge among real estate investors that you make money in the business when you buy properties, not when you sell them. Therefore, you should only invest in houses that can bring you the biggest profits.

There are many great sources of profitable properties. One of them is foreclosures. Because of the financial crisis over the past two years, many homeowners have lost their homes to foreclosure as they were unable to settle their mortgages and other payments.

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Although some people say that you will be taking advantage of people’s misfortunes when you buy foreclosed properties, there is nothing wrong with it because you just want to make money. In fact, buying repossessed homes can be a great help to the community since you are helping to fill vacant properties by flipping houses to interested buyers.

Bank owned or real estate owned properties (REOs) are also considered profitable properties.  REOs are basically properties repossessed by banks and lenders that have undergone the foreclosure process but have failed to receive bids at auctions. What separates them from ordinary foreclosures is that they are in relatively good shape since lending institutions have separate departments that are looking after these properties.

Aside from foreclosures and REOs, motivated home sellers are also good sources of money-making properties. Because they are in a hurry to get rid of their unwanted properties, these home sellers don’t usually ask for a higher selling price. As long as you can help them sell their houses fast, they will accept the deal that you are offering to them.

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Guidelines on Hiring Contractors for your Fix and Flip Projects

Hiring contractors is something that you should consider when doing fix and flip projects. As you may know, rehabbing old and dilapidated properties can be a lot of work. Even if you have prior experience in doing construction and home improvement jobs, it would take you a lot of time to finish a complete rehab if you’re going to do it alone.

However, while it is true that obtaining the assistance of professional contractors can make your job as a rehabber much easier, there are times that hiring contractors can do more harm than good to your business. For this reason, you will need to be careful when choosing the people that you will let in to your rehabbing team.

It is no secret that there are incompetent contractors and there are a lot of horror stories involving these people that are circulating among rehabbers. If you don’t want to ruin a lucrative real estate investment, here are the things that you should watch out for when hiring a contractor:

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1. Stay away from contractors who make too many promises. According to rehabbing experts, if a contractor promises you a lot of things even before starting a fix and flip project, chances are, that person is only pulling your leg and don’t have any plans of following up on his words.
2. It is okay to listen to the suggestion of your contractor from time to time but if you think that person is overstepping his boundaries, then maybe it is time for the two of you to part ways. Never put up with a contractor who shows complete disregard to your rehab plans. Always keep in mind that you’re the investor and the one who’s running the show.
3. It is no brainer that you should avoid contractors who demand initial payment even before the project starts. Why, you ask? These people are like to bail out on you the moment you issued a check.
4. Always remember that the main purpose of hiring contractors is to ensure that the repairs and renovations will be finished as scheduled. Therefore, if your men are taking too much time to finish simple rehab tasks, you should consider finding replacements. This will help prevent you from missing great opportunities to make money in real estate.

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Expanding Your Real Estate Investing Knowledge

Real estate investing can help you live the life you’ve always dreamed of. If done correctly, it can bring you the financial freedom you’ve been longing for. It can also help you fulfill your dreams by providing you with dozens of money-making opportunities. So if you want to start the road to success, then you should take the big step towards investing in real estate.

To get started in this business, you have to walk the walk and talk the talk. You have to know everything about being a real estate investor. Common sense dictates that you shouldn’t start something unless you have a basic knowledge on what it is all about. The same goes for real estate investing. You have to educate yourself about the ins and the outs of the business to ensure a smoother work flow.

You can do this by reading various learning materials on investing in real estate. There are lots of books on the subject that are available in the market today. The Internet is also a great place to look into as it contains tons of resources that can enhance your skills as a real estate investor. There are also numerous websites that offer free real estate content for your learning needs.

Attending seminars can help, too. Let us admit it. Some of us can’t understand a particular concept or idea without having someone to explain it for us. Therefore, by being part of such lectures, you can learn various techniques and strategies that you won’t get by reading books or articles alone.  It would also be easier for you to understand important principles about real estate investing by listening to the explanations and examples of seasoned real estate investors.

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Learning from the experts is indeed a great way to expand your knowledge and enhance your skills as a real estate investor. Thus, if you want to avoid the common mistakes that most beginners do, you should also consider getting a mentor. By having an experienced real estate investor guide your move, it would be easier for you to make important decisions.

To succeed at real estate investing, however, you have to implement all the things you have learned. What’s the point of doing all that research and attending seminars if you’re not going to apply the information you have gained from them? So if you want to make this work, effective implementation is the key.

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