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Real Estate Investing – 4 Ways to Become Wealthy As a Real Estate Investor

admin — Sat, 04 Jun 2011 13:18:02 +0000

Many people have become millionaires by investing in real estate than through any other form of investment. The reason real estate has paved the way to riches for so many people are because there are so many different ways to become rich. Here are 4 ways to become wealthy as a real estate investor.

The best way to become rich as a real estate investor is to purchase properties at below market value. This allows you to have immediate equity in the difference between market value and your purchase price. If you hold the property for a long time, you are also able to reap the benefits of the appreciation in the home’s value. So how do you find a property at below market value? Here are 4 ways to find under priced properties.

#1 – Dirty Houses

When you drive down a street, you immediately recognize the one house that has not been taken care of. It may have grass that has not been cut or there are visible signs that repairs have not been made to the exterior of the property. Houses that are in bad shape are referred to as dirty houses. Most homeowners do not want to purchase a property that needs an extensive amount of work. As an investor you can usually purchase these properties at below market value.

#2 – Distressed Sales

Sometimes homeowners are forced in a situation in which they need to quickly sell their property. In exchange for a quick sale they will usually sell the property at way below market value. Anyone going through a divorce, bankruptcy, job loss or relocation is a great source for quick sale.

#3 – Expired Listings

Sometimes homeowners try to sell their property but they are not able to find a buyer. They will usually have a set period of time that they have given to their real estate agent in which to list their property. If their property has not sold at the end of the listing period, it is called an expired listing. The homeowners want to sell their property but are unable. If you contact the owner you might be able to purchase their property at a discounted price.

#4 – Death

When a family member passes away, the family may inherit a home that they do not want. This is especially true if the heirs live out of town. Deaths are listed in the newspaper. You can read through these listings and contact the executor of the estate to see if the heirs are willing to sell. Usually the heirs do not know the value of the property and might be willing to sell it to you at below market value.

Reasons Not To Become A Real Estate Agent

admin — Thu, 26 May 2011 14:51:48 +0000

Real estate can be a great career, but it is not as easy as it looks to become successful. In my last article I talked about the reasons why you should become a real estate agent. Before I get into the reasons of why you shouldn’t become a realtor I want to go over the reasons why you should. First and foremost, the harder you work the more money you are going to make. Not only can you make a lot of money but there is no limit to how much money you can make. Another reason why you should become a real estate agent is that you can create your own schedule. With a flexible schedule you are able to sleep in when you need to, and go home to watch a basketball game during March Madness. I will get to the reasons why a flexible schedule is not always good a little later. One final reason that you should become a real estate agent is because you can have a major impact on a lot of people.

If you like meeting the needs of your peers then this may be the right profession for you. However, before you decide to jump right in, let me explain to you the reasons why you should think twice about becoming a realtor.

The main reason why you should stay away from real estate is because it is usually based solely on commission. That means that if you don’t sell anything, you don’t make anything. I was na

Real Estate Leads 101 – How To Get Your Own

admin — Wed, 25 May 2011 04:08:51 +0000

There are many different ways to generate your own real estate leads, it’s just a matter of being creative. Of course, there are the traditional ways: referrals from past clients, subscribing to a lead generation service, and putting contact forms on your own website are all great ways of generating real estate leads. You may want to dig a little deeper though.

The first rule to being a good agent is realizing that real estate leads are EVERYWHERE YOU GO. And I do mean everywhere. You should make it a goal to tell a certain number of new people a week about yourself and the fact that you’re a real estate agent. Stopping at a convenience store for a quick bite? Strike up a conversation with the cashier or the person in line behind you. Give them your business card. So what if they wind up throwing it out, you still made the connection. Were you recently invited to a wedding? Don’t be afraid to take some business cards along and start networking and collecting those real estate leads like they’re baseball cards. Don’t forget to hit up the bride and groom – they may be shopping for their starter home within the year.

Don’t be afraid to send mailings, post fliers, do whatever you can to get your name and face out there and the real estate leads will come. Come up with an idea for a contest or promotion – perhaps everyone who submits their information on your website will be put in a drawing to win a $100 gift card from Target. Or the first 20 people to sign up for your newsletter will receive a $10 gift card tot he store of their choice. Even for real estate agents, the age old adage is true: you have to spend money to make money.

There are hundreds of agents out there who want your lead’s business. It is up to you stand out and become unforgettable to your real estate leads. After all, if you’re not unforgettable, you WILL be forgotten. Giving away free things (especially something free that might have your logo on it) is a great way to be memorable.

Another great way to accumulate your own real estate leads is to party! That’s right, throw a party. If you’ve had at least 10 clients, you might want to think about throwing an inexpensive barbecue and invite all your past clients with the provision that they must bring at least one friend or family member for you to meet. To add even more incentive (though free food is usually enough incentive for me!) you may want to think about doing a raffle or something. Any of the guests of your clients can fill out their contact information and be put in a drawing to win a $50 gift card or some such thing. Do that and *poof*, instant real estate leads.

The fact is, real estate leads can be cultivated ANYWHERE. All it takes is telling someone what you do and handing them a business card. That right there is a potential real estate leads – of course, getting their contact information in return makes it all the better. Be creative when you’re thinking about how to increase your real estate leads – don’t do the same things over and over again, and try and be as innovative as possible. Just remember: real estate leads are EVERYWHERE – you just have to look.

7 Tips to Real Estate Agents’ Success

admin — Sat, 26 Mar 2011 13:05:29 +0000

With over 2 million real estate agents according to the National Association of Realtors (NAR), becoming a successful real estate agent takes more than just a license and a knowledge of current laws and regulations.The first year drop out range estimated to be from 40% to 80% demonstrates that many real estate agents are not as successful as they could be and research suggests that 90% give up after 3 years. The following 7 tips may help you avoid becoming one of these statistics.

First and Foremost YOU are a business. Real estate agents work for a broker, but are independent, commissioned sales people. This means that you are a small business and must run your practice as a business. Again, remember you are a small business owner. Embrace a Planning Attitude. If you don’t have a plan, then you are on some else’s plan – usually the successful real estate agent’s. During the last 10 years, what I have learned as a performance improvement consultant or coach is that most people place more value in planning a trip to the grocery store or a vacation than planning their lives either professionally or personally. Research Your Market Plan. Since you, as the real estate agent, are responsible for your own expenses, do your research specific to your marketing plan within your strategic plan. Time spent in constructing your marketing plan is definitely well spent. NOTE: Remember a business plan usually is data driven, while a strategic plan identifies who does what by when. Establish Sales Goals. Using your strategic action plan, establish sales goals. If you are new to this industry, it may take 6 months before the first sale. HINT: Use the W.H.Y. S.M.A.R.T. criteria for goal setting. Create a Financial Budget. Budgeting is critical given the up and down of this volatile market place. Your financial budget should plan for your marketing costs, any additional costs such as education and your forecasted income. Make Managing Yourself a Priority. Building a business is not easy. You must learn how to manage yourself especially in the area of time management, ongoing real estate business training coaching continuing education units, and personal life balance. Real estate is said to be a 24/7 business much like any small business. However, it is important not to lose sight of your personal life including family, friends, physical health, etc. Find a Mentor or a Real Estate Coach. Going it alone is not easy. Take the time to find a mentor who can help you steer through some of the known obstacles and help you during the “peaks and valleys.” If you have the resources, you may wish to hire a real estate coach or an executive coach who specializes in small business help and sales.

Being an incredible sales person and entering the real estate market does not guarantee similar sales success. However, these 7 tips may help you avoid many of the pitfalls by not being one of the four real estate agents who quit within one year or one of the nine who give up after 3 years.

Business Plan

admin — Thu, 20 Jan 2011 10:57:37 +0000

A business plan is a written summary of your business idea including the product, people, equipment, financing, competition, sales and marketing, cash flow and operations that are required. You will want to prepare a business plan not only for your new venture but also for new products or business models. If you need financing for your venture you will need a Business Plan to present the plan to venture capitalist, investors or your bank. Even if you are self financing the venture you should prepare a business plan as if you were going to present it to your bank. There is no one easier to lie to than yourself and no one easier to fool.

There is no magic formula for a Business Plan although I always found when presenting a plan to a bank the heavier and longer it was the easier it was to get the banks approval. You plan should at a minimum include the following.

A detailed description of the product or line of products or services including target consumer and features and benefits of the product. A statement of qualifications and experience of the person or persons who will lead and manage the venture. A detailed plan of where and how the product will be manufactured or purchased. If it requires manufacturing where will you get the equipment, factory space, raw materials and skilled labor? If you are purchasing the product what are your supply lines? Do you have a purchasing agreement in place? How reliable is the source? Can you get alternate sources if necessary? A marketing plan that details you unique selling propositions, market area, method of reaching your customer such as advertising or online marketing. How will you attract the right sales people? If you are planning on using a marketing firm provide details. If you are out sourcing sales such as to a real estate agent if you are building homes include information on the individual or firm you intend to use. If they provide a marketing plan include that in your business plan. A cash flow plan detailing required cash resources and how long the cash will be required before the venture becomes cash positive. A statement of required resources not listed above such as licenses, permits, insurance, testing and research, office space and associated equipment and furniture. An organizational chart showing a plan for operating the business at inception and as it grows. A list of your key advisors; accountant, attorney, insurance professional Include a break even and profit analysis. How many units or dollars do you need to sell to break even and how many do you need to sell to provide a return to your investors? A bank will want to make sure they are going to get repaid. Investors will expect a return which well exceeds return they could get from safer investments such as saving accounts, money markets or bonds.

Even if you do not need to reach out to investors and a bank and are going to be self financed prepare a business plan and present it to a bank or group of investors who do not have fallen in love with the idea like you have. If you cannot convince them to provide funding then you likely need to reexamine the plan.

Friends and relatives are not a good audience as they will either be too easily swayed by your enthusiasm or afraid to tell you what they really think. I once had a relative who I looked up to all my life. He was buying a franchise when he retired and he showed me the business plan. When I looked at the return on investment and the work required to produce that income I thought “this plan will never work.” Because I had looked up to him so long I kept my opinion to myself. He spent almost ten years working too many hours trying to keep from losing his retirement savings. In the end only the long hours and a lot of resourcefulness helped him recoup his original investment.

Original Content copyright 2010 Thomas Robinson

Real Estate Agent Courses

admin — Tue, 21 Dec 2010 18:45:42 +0000

Online real estate courses are offered to potential and licensed real estate agents, real estate brokers, real estate appraisers and real estate investors. The online schools offer a wide range of services to their students, which include helping the students pass the licensing exams for each field. Different courses are offered to those who wish to become agents, brokers, appraisers and investors as each has its own specific areas of study.

Courses for real estate Agents

The major areas of study that the courses for real estate agents include License Laws, Real Estate Contracts and Law, Escrow, Finance, and the Principles and Practices of Real Estate Math. These courses are often delivered through various software, CDs and virtual tutorials that the online schools offer their students. These courses help the students have access to the most up to date state laws with regard to real estate in the areas where they wish to practice their profession and the most up to date techniques and skills that can help them help their future clients. The students also take exams on these modules as to assess their understanding of the different areas of their study.

Review for licensing exams and license renewal

In addition to the modules that these courses offer, one important service that these online schools provide their students are the reviews that the students can take to help them prepare for the State Real Estate Exams that they will take to become accredited agents. These reviews are often given to the students in the form of practice exams and supplementary reading that can help the student prepare for the exam.

Apart from offering their services to people who wish to become agents, courses are also offered to licensed real estate agents who need to renew their real estate agent licenses. Online real estate courses for agents provide high-quality, effective, and convenient classes to future realty agents, that not only give them the most up to date information on real estate but also the best preparation for the State Real Estate Exams.

Become a Successful Real Estate Agent

admin — Sat, 18 Dec 2010 23:20:58 +0000

Current Market

Nowadays, the US economy is facing one of the biggest recessions of all time. The real estate market is in a slump as well. But, like everything, it is not permanent too – there is nothing permanent except change.

Even in this condition, there are many areas where the property business does not have any bad impact as such. Though, now market is a buyer’s market, but you can still sell and buy properties and earn a very good profit. It is important to understand that prime location properties are always in demand.

In this cutthroat competition, you have to be alert and act quickly as a good opportunity would not last longer – there are thousands of agents waiting for good opportunities in the market.

What businessman wants?

Every good businessman wants to buy a property at a low price and wants to sell it at a high price. This is the ideal time to buy good properties as their prices are low – a buyer can get very good profits once the recession period is over.

Look around for Properties

Always look around for those properties which are in the market for some time as usually their sellers are tired of waiting and ready to sell them at a negotiated or low price. Don’t buy or recommend those properties that require a lot of maintenance work.

Moreover, if a house needs some minor repairs, get it done before calling the potential buyers for visits; always make the house as presentable as possible.

Nevertheless, you can buy or recommend a property that requires some maintenance work – in such cases, you can get the work done on your own in only a few hundred dollar, on the other hand, you can get a good discount from the seller.

Research is Key

Always do research about the neighborhood properties prices; it would help you in calculating the price of the property you are planning to buy. In addition, preference should be given in buying well-to-do neighborhoods. If you buy a property in run-down neighborhood, you might have to bear the loss – don’t invest money in the run-down neighborhood.

Keep researching about the home you want to sell. Ask the owner about the history of the home – it might give you some good points that will help you in designing the sales pitch of the home.

Regardless of your working style, whether you are working as a part-time or a full-time real estate agent always try to attend seminar and conventions so that you can gain the knowledge of the current market trends and interact with other agents – you might get some customers over there too.

Make yourself as vocally expressive as possible. You should be a people friendly person. Never brag in front of your customers as it creates a negative effect – people are not mad these days, in fact, they are very well aware of the market.

‘House for Sale’ board is not ENOUGH

Remember! Only posting a board with the wordings like “House for Sale” does not do the job effectively. Always complete the paper work of the home so that it would not delay the selling process – it would also help you in improving your image as the customers don’t want delays.

In the end, we can say that if you follow the aforementioned tips, you will certainly improve your impression among other real estate agents and potential customers; and eventually, you would be able to do more business.

Getting Your Real Estate License

admin — Sat, 18 Dec 2010 13:08:56 +0000

Being a real estate agent is an exciting and fun career. If you don’t want to be one, you still might want to consider investing in real estate. It is a profitably market, and you can easily get involved with your license as long as you take the proper precautions in mind.

Licensing usually changes from state to state; however, there is a common number of issues or problems you may face. To succeed in grabbing that license, you will want to keep a few important considerations and tips in mind.

More commonly than not, you must achieve certain pre-license requirements. You need to find out what these are so that you can properly prepare for them. It is common for these to contain educational skills, so ensure you know what they consist of.

You may also have to go through a series of requirements after you receive your license. If this is the case, prepare yourself. You should know the general process so that you do not discover unwanted news.

Usually, the questions on the exam are new for the individual. Obviously for this reason, you should do a lot of studying and ensure you know the material.

Take a course to prepare yourself mentally, and ensure you schedule a test right after. This will drastically improve the chance of success, as you will not have forgotten anything.

Furthermore, practice makes perfect. Scour nearby resources for practice exams. This will help you get a better understanding of the material and what is expected. It will also give you a grasp of the test format.

Lastly, you should take a course that guarantees you will pass the exam. If you do not pass the exam, you will need to pay to retake it. By using a course that guarantees your success, you will be able to get some type of money or deal back.

Retail Real Estate Is Bombing While Wholesale Real Estate Is Booming

admin — Tue, 07 Dec 2010 07:50:34 +0000

That’s exactly what the media wants you to believe. Unfortunately their doing a great job convincing everyday hardworking Americans who are losing their homes that this is the current state of the Real Estate Market all over the United States. The fact of the matter is, real estate investors who understand market cycles are flat out creating wealth. You need to know how to identify cash cow REO deals in your market and capitalize on one of the greatest real estate investing opportunities in the history of United States.

First you must know what is that you are looking for. In most cases
we are looking for homes in bread & butter neighborhoods that are 20 years or older. These areas generally consist of a stable rental market with blue collar workers that have lived there for sometime. Some other signs to look for to determine if an area is good for rentals. Is simply to see how many of the homes within a half mile to a mile radius are owned by absentee owners. If you don’t know what an absentee owner is, that simply means someone owns a property, but it is not their primary residence.

You also want to check the comparable sales in the area as well as the rental rates to make sure that the houses you are making offers on will be able to have a positive cash flow. You can usually contact a local real estate agent to get this information. If you don’t have access to any realtors leave a comment on my Blog or send me an email, and I will send you some great resources for that information. Now that you have identified the rental rates and the value of the property its time to start submitting offers.

Now when it comes to dealing with banks you have one of two choices, A. uses a buyer’s agent to represent you or B. deal directly with the listing agent for the bank. I personally would choose B. and simply put the selling agent will be more motivated to get your offer accepted knowing they get to keep the full commission for themselves and not have to split it with a buying agent. The only caveat with that is they technically do not represent you unless you do a duel agencies agreement which is beyond the scope of this article. Plain and simple use the selling agent to make your offers.

Now when we want buy REO deals from the banks or other wholesalers we do not want to pay no more than 60 cents on the dollar minus the repairs. I generally offer much less than that when negotiating with banks, usually around 45 cents on the dollar minus repairs. You just want to be able to get a dialogue going between you and the bank. Hopefully the selling agent will do their job and try to get your offer accepted, once your offer has been accepted now its time to close deal.

In part 2 of this article we will discuss how to finance these deals, and even flip REO property. Until then take care and happy investing!

Real Estate License Required

admin — Wed, 01 Dec 2010 12:33:23 +0000

Looking for a very lucrative business opportunity? Real estate brokering is the top choice for a lot of people. Real Estate Brokers and real estate agents are working throughout the nation. Not only are they making excellent incomes, they are also contributing to the economy in direct, as well as, indirect ways. By helping the sellers in selling their property and at the same time helping the buyers in buying a property these agents help satisfy their need for shelter. Creating this transaction often entails many other services to be ordered. So, can anyone start real estate brokering? Well, not really.

Possessing a Real estate license is a pre-requisite for becoming a real estate agent. However, obtaining a real estate license is not difficult. In most states, the qualifications for getting a real estate license are very minimal. So you should first check the eligibility criteria for obtaining a real estate license (rather pre-license) in your state. The real estate license eligibility criterion includes things like the minimum age limit (which is mostly 19 years) and educational qualifications (which is mostly high school). Most states do require a clean criminal record, sorry. Once you know that you satisfy those real estate license (pre-license) eligibility criteria, you can go ahead and enroll for a pre-license training.

There a number of real estate schools that offer real estate license training. Some real estate schools offer online training for a real estate license. Choose a course that is spread over a sufficient duration of time e.g. 1 year so that you are able to grasp the concepts properly (after all you want to become a successful real estate agent and not just another real estate agent). You will be taught a number of topics as part of your real estate license training. All this will help you develop a basic understanding of real estate and various aspects related to real estate (e.g. real estate law, deeds, contracts, ownership transfer, etc)

Once you have undergone this real estate license training, you will be required to undergo a state exam. After you pass this exam, you will generally need to undergo additional training on state approved courses. That’s it, you can now get a real estate license which is worth that effort (as you will find in a couple of years of starting real state brokering). Most states also require you to go for continuous education after you have received your real estate license. However, this is a just a few hours every few years.

So a real estate license is what you need to start your career as a real estate agent. But your success after that will be dependent on how seriously, ethically and effectively you carry out your job. Unfortunately, eighty percent of new agents will have left the business within five years. Remember, this is a very competitive business and you will find that the top twenty percent of agents earn nearly eighty per cent of the money. Being average in the sales business will leave you hurting financially.