|
4 Steps To Real Estate Investing Success!
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.
About the author:
Hans Hasselfors is the founder of SubmitYourNewArticle.com. Find
varied real estate articles in our article directory. Please
visit at: http://www.SubmitYourN
ewArticle.com
Hans Hasselfors
More Articles
Why Invest in Real Estate in Asheville, North Carolina? - Noelle Dumas
Asheville, North Carolina, home of Vanderbilt’s Biltmore Estate and the five star resort hotel, The Grove Park Inn, is now one of the most popular places to retire, relocate, or purchase a second home in the Eastern United States. In the early part...
How To Become A Savvy Real Estate Investor - Jamie Madison
If you’ve turned on the television lately, at some point you'll hear the experts praising the virtues of diversification. Real estate has long been considered a conservative, long-term strategy to growing wealth. While some seasoned real estate...
Six Reasons Why Real Estate Investors Should Buy In December - Jeanette Joy Fisher
December and New Year's Day give home buyers and real estate
investors the perfect occasion to buy real estate. Not only can
you pick up a bargain property from a motivated seller, you can
save on your purchase expenses.
1. Home shoppers put...
Real Estate - Chris Anderson
YEEHAW!!!!!! The south will rise again!! Can't you just imagine the Dukes of Hazard boys sitting on the hood of their car (the General Lee) grinning in front of a For Sale sign in their yard? Well, they should be smiling with the prices in the...
Top Ten Suggestions for Selecting a Real Estate Agent - W Troy Swezey
In order to find a real estate broker or agent who meets your needs and makes your buying or selling experience a positive one, Century 21 Real Estate Corporation recommends you:
DO NOT blindly walk into or call a neighborhood firm and...
Real estate portal attacked by hackers - George Barrows
RealEstateGates.com officially announces of the hacker attack that took place last Friday, December 3. Portal's Security Systems detected the intrusion of at least 6 fraudsters throughout the day using different IP-addresses but presumably having...
Descriptive Terms in Real Estate Ads - What Do They Mean? - Raynor James
If you are buying or selling a home, the chances are good you
struggle with the meaning of descriptive real estate terms.
Here's the first in a series of articles explaining them.
The Wise Seller
Be very truthful if you are a seller...
Creative Real Estate Financing - Steve Gillman
Do the creative real estate financing techniques you hear about really work? Yes and no. They likely have all worked somewhere for someone at least once. The important point is to understand the principles involved, so you can find your own creative...
Real Estate Value: Analysis of Real Worth - Cy Yablonsky
Real estate is one of the most valuable investments you can
make. Real estate in New Jersey is especially valuable. There
are many reasons why real estate can be valuable, but the
age-old adage is usually right: Location, location location....
16 Tips to Buy Real Estate Successfully - D S Peter
16 Tips to Buy Real Estate Successfully by D.S Peter
1. Do not overanalyze. You may lose a lot of great opportunities
to make great deal of money. Start making offers. 2. Get the
property under a contract first with a safety clause....
Ten Ways Of Financing Real Estate - Steve Gillman
Do you remember when real estate financing meant you saved up enough to put 20% down on a house, and then you got a mortgage loan for the other 80%? Well, you can still do that, but there are many more options now. Here are ten of them. 1. Gifting...
Real Estate Agent/Brokers Profit with Broker Price Opinions - Kim Polinsky
There are many reasons that a career in BPO's can be a
profitable path. Agents/Brokers are well aware that many deals
fall apart every day. There are no guarantees that the deals
worked so hard on, will generate any real income. There...
|
