Tracking Down a New Business Venture - How About Buy to Let?

A buy to let property can be a best best for UK investors. But the prevailing question is how to know you’re making a good choice and how to find the perfect property. Instability in the financial sector has resulted in investor uncertainty in the buy to let as well as other investments. That said, everybody has to live somewhere, therefore it stands to reason that buy to let still offers some opportunities.

Tracking Down a Solid Piece of Land to Let

There are many factors to consider when choosing a property. BUY TO LET opportunities can be found in the UK and around  the world. Of course lots of deals outside the UK are off-plan—in other words, you purchase the property prior to construction (from the blueprints). Based on the type of real estate you’re searching for, and the location, you must be capable of assessing the potential revenue from making a go of it.

Assuming that you are looking at a property that is already being let, you can do a calculation of the incoming revenue in relation to the asking price. Just remember that the house will involve spending money on energy, insurances, tax, general maintenance, not to mention various other expenses. You must be sure to fully understand the shape of the property. Will any costly fixes rear their ugly head shortly after the purchase?
Unless you factor all this in, you may find yourself making less money than you were expecting.

Think About the Tenants

If you will be inheriting tenants who already let the property, you can assess how stable they are. Is the property generally inhabited or are there empty places—this is something you must figure out. Keep in mind that empty space (space not being let) means less revenue, whatever the reason. It will be necessary to determine through some local market investigating how long you can expect to wait before you can let the units or property; you’ll also need to find out how much you can charge to new tenants.

Looking At the Money Aspect

In recent times, individuals were encouraged by very attractive mortgage rates to join the BUY TO LET market. When this report was released, the entire banking sector is rather chaotic. As it looks right now, it may now be a bit more difficult to secure financing for these investments, at least at the rates that were available previously.

This isn’t an indicator that there will be less opportunities in this field, however. Without a doubt, the industry will recuperate and potential will reveal itself. There are advantages to be uncovered even in the face of a dismal financial market. Here’s an example: cautious investors may be disinclined to enter the market. This can leave some new doors open. Keep a watchful eye on the economic situation in the UK if you’ve decide to go for it and prepare to jump at the next opening in the buy to let industry.

Fixer Uppers - Five Steps and Two principles

Most new investors in fixer uppers have the basic idea that you buy a house in need of some repairs and cleaning, you fix it up and sell it for a profit. That's a good start, but how do you know if there will be a profit, and what changes to make? Many investors have lost money on their renovation projects, after all.

You have to have a clear idea of the profit potential before you make an offer on a house. How do you do this? Try the following five steps.

1. Make a plan for repairs and improvements.

2. Determine what the house will sell for when it is ready.

3. Estimate the total expenses for repairs and all buying, holding and selling costs.

4. Decide what you would like for a profit for the project.

5. Subtract all projected expenses and your desired profit from the estimated selling price. The resulting figure is the most you can pay for the house if you want a safe investment. You'll want to make an offer lower than this to leave room for negotiations.

That's the safe formula for fixer uppers. It is much better than the "intuitive" process that loses so much money for unprepared investors. But it doesn't answer the question of what repairs and improvements to make. There are two important principles to consider when deciding that.

Fixer Uppers - What To Fix

The first basic principle is to do those things which pay the most for the money spent. It can be easy to put more into a fixer upper than you can recover, so you want to choose those repairs and improvements that do the most to increase the value of the property. For example, painting kitchen cupboards might cost you your time and $25, or $125 if you pay someone to do it. They may look new as a result, and so add $1,000 or more to the selling price of the house.

Actually installing new cupboards could cost $6,000 and add only $6,000 or $7,000 to the home value. In that case, the painting is clearly a better value. Of course, there will be times when the new cupboards make more sense, especially in some high-end homes. Do the math.

As you consider the options you have, always think of return on investment. You may need the help of a good real estate agent to determine this. Describe the house with all your planned changes done and see what an agent thinks it will sell for. Try another set of improvements and see if that has a better return. As you gain experience you'll know what buyers in your area value, and so what changes will pay the most. And always look for all the simple high-return improvements, like a new mailbox, a few flowers and a thorough cleaning.

One thing not mentioned yet is the cost of time. Some repairs and improvements add not just the cost of the change itself - the materials and labor - but also add to the time the project takes. Every day that goes by you are paying for interest on loans, electricity, heating, water, insurance, property taxes, and other holding costs. You have to take those into account, which brings us to the second principle: As much as possible, do those things which make the fastest return on your investment.

Suppose new windows are a possibility, and will add about $8,000 to the value of the house, while costing you $6,500. It seems that you make a profit on the investment, but what if they cannot be installed until a month after the rest of the repairs and improvements would otherwise be done. If your total holding costs are over $1,000 per month, you are probably cutting it too close and you might want to drop the new windows from the list.

It isn't just the direct holding costs either. If you turn over your fixer uppers quickly, you can make more money. There are only so many projects you can handle at once after all. If you concentrate on fast fixes you might get six houses done in a year instead of four. If you're making $15,000 on each that means $30,000 more per year. Keep that in mind the next time you try to squeeze an extra couple thousand in profit out of a project, but at the cost of a month or two of your time.

Make high-return repairs and improvements, and make fast ones. That is the basic idea. And though you'll never know for sure exactly how much value a given change will add, or even what it will cost, estimate as best you can (and get help when necessary). Perfect projections are not important for making a profit with fixer uppers. Following the right principles is.

Residential Rental Properties - Five Types

There are many more than five kinds of residential rental properties depending on how you classify them. But from the perspective of basic investment differences, there are five types that come to mind, each with their own problems and advantages. The first type is single family homes.

Single Family Rental Properties

Houses are appealing to investors for a few basic reasons. First, they provide the easiest way to get into real estate investing, because of the financing options and possibility of a low down payment. Second, they can build equity fast during times of rising prices - even if rents are not rising. Third, they can be sold to other investors or home owners. These two markets make the eventual sale easier.

Of course they have problems too. First, it is very difficult to find houses that can produce cash flow after all expenditures are considered. Also, as a single unit, if you lose your tenant, you lose 100% of your income until it is rented again. If you own multiple homes, it can be a lot of work to collect rent and maintain them versus an apartment building with a similar number of units.

Apartment Buildings

The primary advantage of apartment buildings is that the prices are based on income, because unlike houses, only investors are buying them. This means decent cash flow is normal (otherwise why buy?). Also, because the prices are based on net income more than anything else, if you can find a building with low rents, you can quickly increase the value just by raising them. Of course, the primary problem with apartment buildings is the greater difficulty in financing them, and the larger down payment normally needed.

Small Multiple-Unit Residential Rental Properties

Between single family homes and apartment buildings are the duplexes, triplexes and four-plexes. As long as you stay under five units, you can finance these like a home. Though this is an advantage, it is also the reason it is tough to make this type of rental produce cash flow. There are many people out there buying them to live in one unit and get the equity gains from the whole property. Most of them are not thinking of cash flow, so they push the prices too high. It is convenient to live where your rentals are, though, so if you can come close to breaking even, the eventual gain from equity build-up may be worth it.

Low Income Housing

Mobile homes and small houses in need of repairs get their own category because this low income market has unique advantages and problems. Normally you'll have more late rent payments and other issues with tenants. You also will have more repairs. In general, investing in low income housing means more hassles and more time invested.

What makes it worth it? Cash flow. Suppose a normal three-bedroom house costs $130,000 and rents for $750 per month. You may find a three-bedroom mobile home on a lot nearby for $45,000, and get $600 per month in rent. Repairs, though more frequent perhaps, are cheaper, as is insurance and property taxes. You can see that there is greater potential for cash flow.

Low income housing is all about cash flow. As for the added hassles, there are ways to deal with that. I know a man who has forty rental properties with low income tenants (mostly mobile homes with real estate), and he gives free rent and a small salary to a handyman/manager who does everything from fix toilets to collecting rent.

Other Residential Rental Properties

This "other" category includes the less common residential rentals. Since these properties often don't have the advantages that the ones above have, people invest in them for one reason: cash flow. For example, a large house that would lose money every month as a normal rental might do well as a boarding house, where you rent rooms out individually. This can be very profitable in a college town.

Even less common, but still potentially profitable, are rentals of RVs, or recreational vehicles. You'll see this more in the southwest than in other areas (it's almost common in Arizona). Conversion of old motels into residential rental properties is another way investors create cash flow. Certainly there are a few I have missed as well. Probably houseboats are rented by the month somewhere.

Manzanillo Real Estate a good investment

The port city of Manzanillo, Mexico promises to hold some very lucrative options for investing in Mexican real estate. Many retirees are searching for something a little more calm than the popular tourist destinations. Manzanillo real estate values in have been rising steadily in recent years and will likely continue to increase as Manzanillo gains popularity with vacationers.

Manzanillo Location

Manzanillo can be found on the western coast of the state of Colima. Manzanillo City is the municipal seat of the Manzanillo municipality. Although Copper deposits can be found in the region, a large portion for this region is agriculture. Crops such as watermelons, sorghum, and tamarind are all grown and sold in large numbers.

The areas in and around Manzanillo has become a secret getaway for vacationers and more visitors are visiting than before. Possibly this change may be because cruise lines, including Holland America, have started sailing into Manzanillo waters. Manzanillo has just become an origin port for some cruise lines as well, it will have it's own cruise ship sailing from the Manzanillo port.

Manzanillo's Namesake

The Port of Manzanillo first opened in 1825. The name came from manzanillo trees that were very common in the area at the time. Manzanillo trees are very poisonous, with sap so potent that even sleeping beneath one can result in extremely unpleasant side effects. Wood from these trees was commonly used when building ships, and by 1767 most trees had been cut down, leaving just one remaining in the city. In 1825, the story goes that the governor of the state of Colima had the last manzanillo tree cut down after several people died from snacking on its fruit.

What Manzanillo Has Going For It

Though Manzanillo has drawn more attention to itself recently, the city would never be accused of being a “tourist trap.” Manzanillo is as popular with Mexican families as it is with foreign tourists; interestingly, approximately 60 percent of holiday homes in the city are owned by Mexican nationals. Visit Manzanillo on Christmas and you will see why.

They will never put the emphasis on tourism in Manzanillo. There are hardly any timeshares, very few tourist based stores and when you walk down the street nobody tries to sell you anything. Which is more than can be said of Puerto Vallarta! It is this relaxing atmosphere that creates much of Manzanillo’s attraction to visitors trying to get off the beaten path and expats looking for a place to call home.

Another factor in the city's favor is the low crime rate. Not only does the state of Colima have the lowest crime rate in the country, but Manzanillo has the lowest in the state. When buying real estate, you can rest easy in Manzanillo.

The Real Estate Market

Due in part to its growing appeal with travelers, real estate value in Manzanillo has been increasing at a rate of approximately 20% per year over the last five years. Property values will continue to rise in coming years. In this economy, growth like that is not very common! Manzanillo luxury real estate is quickly becoming the investment choice of many foreign investors.

Just like in other parts of Mexico, foreigners must purchase property using a Mexican bank that acts as their partner. Foreigners must set up a real estate trust called a "fideicomiso" to act on their behalf if they wish to purchase property in the restricted zone. The restricted zone includes land within 100 kilometers of international borders and land within 50 kilometers of Mexican coastline, according to Mexico Law. It is very risky to buy in an area where a fideicomiso is not available.

Manzanillo isn't just a sleepy little beach town, it's also a real investment opportunity for those looking to cash in on real estate for international living. Don't overlook the real estate in Manzanillo for your future home!

Tips to Avail of a Low Interest Morgtgage

Everyone loves a bargain and getting a lower mortgage interest rate can save you a substantial amount of money over the life of your loan. There are several ways to go about ensuring that you pay the least amount of interest when you take on a home mortgage and to calculate the best way to pay and save in your mortgage payments. Listed below are some of these ways.

1. Be aware of your credit score.

Good credit is the key to not only getting a mortgage, but to getting the best interest rates available. Mortgage lenders like to reward borrowers that pay off their bills in a timely manner. Chances are if you have been faithful with your other payments, you will be faithful to pay them back, so they can afford to take a risk on you and offer a lower interest rate. Be sure you use a mortgage calculator, you can find many mortgage calculators online to help you with this process.

2. Close any existing credit card accounts that you no longer use.

The number of your credit card accounts can affect your mortgage application even if the account is no longer in use. Lenders see open accounts as potential for debt, which adds a risk of them not getting their money back. To balance this risk, they will often charge you a slightly higher interest rate.

3. Lock in interest rates before you close.

Once you have agreed on a low interest rate, ask the lender to lock in that rate. Rates can fluctuate drastically in the time it takes for you to get your mortgage and that could mean paying a totally different interest rate than what was originally quoted.

4. Make the biggest down payment you can afford.

Putting a down payment from your savings on your house lowers the amount you plan to finance thereby lowering the interest you will pay over the life of your loan. This is when, again, using an online tool like a proper mortgage calculator tool, can tell you exactly what can be the best way for you to pay your mortgage payments.

5. Shop Around.

You don’t have to work with the first lender that you approach. There are many mortgage lenders in any given place today so be sure you explore all the options available for you. Don’t be afraid to tell brokers that you are shopping around, or ask them if they can match the interest rates of a competitors quote.

Is Rent to Own Better For You?

Even though rent to own may be good for a short period of time, it proves to be an expensive way for someone to buy something they intend to keep. Rent to own merchandise for example, may sound quite compelling at a few dollars a week. The agreement is normally for around 15 - 20 months, which is where the company makes their money. Although you may be paying just a few dollars a week, the total amount quickly adds up to nearly twice the cost of the item.

Along with paying rent, you’ll also have to pay applicable sales tax as well. Similar to rent to own merchandise, rent to own real estate has its own woes also. Even though it can be great for those with not so great credit, you’ll normally end up paying back a lot more than you would with a mortgage. You’ll still have to pay back your lender with a mortgage, although that amount won’t be nearly as high as it would if you decided to get a house on a rent to own basis. (this is not just a theory, it is a fact and you can understand this easily by just looking at any mortagage calculator out there , you will see clearly the results - this strategy only works if you understand the clear value of your house, and to do this you need to use a proper real estate appraisal software to help you understand the process.)

In most cases, rent to own houses are put up on the market by the owner. This way, you’ll deal directly with the owner. It will start out as a traditional lease, then proceed to a rent to own basis if you decide you want to keep the home. You and the owner will then work out an arrangement, which will normally be quite a few years. Although there are owners that would allow a better deal, most are afer profit so that their prices are not negotiable.

How To Fund Your Flip

 

Real estate investments are quite expensive. Not only will you need the money to buy the house you will be flipping but you will also need money for the renovations, repairs and remodeling that need to be made along the way. Unfortunately, the real estate business is very tricky and there aren't many traditional lenders that would be willing to go all out to support you in your real estate investment business venture.

This means you are going to have to either fund a good portion of the expenses yourself or you are going to have to find some other means of financing your house flip. First things first, the less you pay in interest the more money you bring home. You want to try to not max out all your credit cards trying to get profits from a property flip if it can be avoided. Merchant accounts aren't any better but they can help you to keep better track of exactly the amount of money you are spending on the flip and some will even give you 90 days same as cash (and this is a very good way of doing things if you can complete the process within 90 days).

It should be said that these aren't methods that are endorsed by the writer but they are definitely possibilities when it comes to funding your house flip. The best-case scenario is that you would have the money to play with and assume no real risk in the house flipping process but very few people trying to get started in real estate investing have that luxury.

That being said, one way that is probably to risky for most (especially if you are nearing retirement age) is to cash in your retirement funds. This is not attractive for many reasons not the least of which are the facts that there are hefty penalties for doing this and you are risking your retirement security. It is one of your options however if you are in a tight spot to find money for your flip. If your property flip is successful it will be water under the bridge, the money can be repaid to the lender or reinvested and the profit that came from the house flip can then be used to fund your next flip or other types of real estate investments.

If you talk about things carefully with your family and friends and you decide you are all willing to take the risk you can also use your home as collateral by taking out a second mortgage for the money. Again this is not the preferred method because the assumed risk is great for the security of your family. It is very important that everybody involved be made well aware that flipping property is a risky endeavor. Not only is it verr risky because you aren't experienced enough but the real estate market is also very picky. Your property could just sit on the market for several months which would incure costly carrying costs before it actually sells.

Forming a partnership is another way to share the risks and help lighten the burden when it comes to flipping houses. Keep in mind that this is a stressful business venture and should be treated as a business venture. For this reason a volatile or fledgling friendship may not be the best risk for a venture such as this. If you do choose a partnership you need to carefully discuss the type of financial and labor investment that is expected of each partner and the share of profit that each partner expects to receive as well. You should also consider carefully whether you are willing to risk the friendship for the sake of profits or would you rather go with a partnership that isn't a close friend (most real estate investment groups have people willing to help with the financial side and assume the risk for the lion's share of the profits).

Banks will typically fund a portion of the property costs if you can come up with an adequate down payment and show them a well thought out business plan. Do not rely on banks however if you have poor credit, lack a business plan, or do not have a sizable chunk of your own money to invest in the venture.

Please make sure you check out my real estate blog at http://cashmoneyhousebuyerblog.com

Boot Camp For Property Flipping

If you are anything like millions of Americans you have probably caught countless shows on cable television that boast the serious profits that can be made by flipping houses. This is a true statement, seriously big money can be made when one goes about flipping property the right way, however, big money can also be much more easily lost when a property flip goes the wrong way. If you are trying to find your fortune through real estate investing you need to pull yourself up by the bootstraps and understand a couple of property flipping basics.

The first thing you need to understand is that the biggest goal in a project such as this is to make as much money in as little time as possible. This means several things to the wise investor not the least of which is that you must always have a complete inspection performed before you make any sort of financial commitment to the house. A good inspection can help you identify work that must be done, whether or not there is any structural damage, or whether there are any unexpected problems such as signs of termites or water damage behind the walls.

These are very important things to know and should have a significant impact on your offer on the property as they will have a direct effect on how much you will need to invest in making the property sellable and whether or not the property will even be profitable when you consider how much money will be needed to get it in minimal selling condition and how much you can reasonably expect to sell the house for after that.

Once you have the inspection done it is a good idea to take into account all the things that will need to be done to improve the property and the things that must be done in order to get the property in sellable condition along with permits that are needed, inspections that are needed, and jobs that require licensed contractors in order to meet local code requirements. Each of these will take a big investment in order to complete and that should also reflect in your offering price.

Way to few would be property flippers manage to take in the big picture when making their plans and this is where most of them end up missing the bigger profits that can be made by successfully flipping properties for the lowest investment possible with the highest possible return on their money spent. When making your plans you will want to go with changes that are cost effective.

Avoid making structural improvements to the property unless you have a licensed contractor sign off on the wisdom and safety of those changes, as most of them can be very expensive as well as dangerous to the stability of the house. At the same time you should salvage as much as possible within the existing structure. Flooring and paint are almost always required in a house flip but you do not always need new cabinets in the kitchen or bathroom fixtures. Chances are that new doors and new hardware on the cabinets in the kitchen would be a great fix for old and tired cabinetry while make a drastic impact on the overall look of the kitchen without stealing some of your serious profits (cabinet doors cost way less than making new cabinets and so does paint and they can add the appearance of good cabinetry).

The biggest idea to walk away from house flip boot camp with is the idea that the most visual impact you can have on the home for the least amount of money the better. In other words you don't want to purchase a home that needs new heating or air conditioning as they are not visual changes and are quite expensive. Find a house to flip that needs minor cosmetic repairs and a little dose of style and imagination and you will be able to maximize your profit. That is what real estate investing is all about after all.

Please don't forget to check out my blog at http://cashmoneyhousebuyerblog.com

House Flipping Sob Stories

What you don't see on many of the television shows about flipping houses are the many sad tales of promising flips gone wrong. These legendary tales of misfortune are often the precursors to big financial hardships and for quite some time as those who do not succeed at their house flips work on trying to recover from their big losses and then moving on with their lives. Some are hit a little harder than others but the snowball effect of a bad property flip is often not even hinted about on the television shows that are so proud of the many success stories that arise because of hard and studious efforts in the property flipping area.

If you are planning to flip a house for a real estate investment you really need to take a step back and decide that you are absolutely not going to be one of the house flip sob stories that are rumored about in Internet chat rooms. In fact, you will definitely want to be listed among the other success stories. Unfortunately that takes a great deal of proper planning that is almost never shown on these television shows. In fact, to put forth your best effort you need to devote as much time to studying and planning properties, prices, and home values in your area before you even begin to search for your first property to flip as you need to invest in the entire process of actually working on your first flip. In other words, several months worth of planning and research need to go into your first house pick in order to lower the risk of not succeeding and to raise the odds of success.

The second thing you need to do when planning your first flip and avoiding a sad tale and a sob story is to be realistic and avoid great expectations. With your first flip you are darned lucky to turn a profit at all. If you are expecting to make more money on your first flip than you made last year as a full time employee you might need to make other plans. Because of all the unforseen problems, the first property flip very rarely goes as expected.

Third, you will need to put back at least twice as much money (or even three times as much) as you think you will need for the improvements on the property in order to cover the actual costs that you will incure. There are inevitably tools, permits, supplies, and labor that wasn't counted on in the initial budget figures as well as the tendency to seriously underestimate the cost of the materials that will be needed in order to get the job done. If you don't have that much or can't spend that much and walk away without a loss then the property you are considering might not be the best property for your first flip.

Finally you need to plan everything. Every day will need to be planned before you show up and try to work on the house and you will need to have all the materials and supplies you will need on hand such as coffee, lunch, drinks, tools and supplies. Trips to the hardware store, lunch breaks, and coffee runs quickly kill a day and any productivity that may have been made during that day. Avoid these costly delays by proper planning and you will discover that you have a real estate investing success story worth writing home about.

Please make sure to check out my real estate blog at http://cashmoneyhousebuyerblog.com

The Benefits of Flipping Houses

Aside from the obvious financial rewards that go along with real estate investing and flipping houses there are a few more abstract benefits that can be gained when you embark on a house flipping adventure if you are looking for a little more incentive to get going in the direction of your dreams of real estate riches through flipping houses.

Many things in life have way more than 1 pro or 1 con to them and the same is said when it comes to flipping houses. Whether you are doing this for a living or this is a one-time deal you will find that there are all kinds of little lessons you learn along the way. Knowledge is rarely a bad thing and the lessons you learn while flipping houses are lessons that can be applied in many aspects of your life.

1) Budgeting. There are few things that can give you a crash course in budgeting quicker than flipping a house. In order to successfully flip the house you are working on you will need to learn to budget quickly or you will wind up literally hemorrhaging money. Learning to set a budget and stick with it are both necessary skills for any flipping houses but when they carry over into other real life applications you will find that this is a very useful skill that has you looking at everyday purchases with new eyes.
2) Muscle Definition. Who knew that flipping houses would be such an excellent workout? This is especially true for those who traditionally hold jobs that aren't necessarily dependent upon physical labor and those that do much of the work themselves (which is highly recommended when you can in order to save expensive and profit eating labor costs). From heavy lifting to hammering and several other physical jobs in between you should discover that your labors are rewarded in more ways than simply watching your project come together.
3) Attention to Detail. This is a big advatage that comes from flipping houses and you can bet you will get better at this with every subsequent deal. The money, when flipping houses is often made in the small details that others will overlook such as new electric faceplates, proper staging, and a good eye for color throughout the property. These items make potential house buyers see a property that is loved and cared for rather than another house on their list of properties to see. If you pay attention to detail in your 9 to 5 job after flipping properties or into your tax preparing, event planning, and even organizing your home, you will find out that the experience you've gained while flipping properties is well worth the time, labor, and money that went into getting it.
4) Thinking Positive. You will hear it often in your life, but positive thinking is a very powerful tool. There are very few places that this holds true more than when it comes to flipping houses. You will definitely want to season your thinking positive with a BIG dose of reality but you should be well aware that thinking positive has many advantages to you when flipping houses and in almost every other area of your life. You don'tt want to spend your time that you could be repairing your property searching for problems or excuses+.
5) Just Do It. The old Nike commercials had a point and if flipping houses doesn't teach you anything else it should teach you this lesson. Procrastination wastes money. Every day that you carry the house you carry the expenses of the house (electric, mortgage, interest, etc.) get in there, get it done, and move on to the next project. Putting off the tasks that you don't want to do, won't make them go away so you might as well just go ahead and get them over with.

Flipping houses isn't rocket science but it does take a unique combination of luck, skills, and stubbornness to turn a profit in this particular business. Learning the lessons above will make you not only more successful when it comes to buying and selling properties but in other parts of your life as well.

Please don't forget to check out my blog at http://cashmoneyhousebuyerblog.com

5 Things To Do When Flipping Property

While many people have very specific dreams of enjoying the bountiful profits that can be made from flipping houses very few people put too terribly much thought into the process or any formulas that might be pertinent to success when it comes to flipping houses as a real estate investment venture or for the sake of building a nice comfortable lifestyle or retirement. You will hear a lot about the things not to do when it comes to flipping houses but very few people take the time to mention the things you absolutely must do in order to successfully flip a house and thus begin your ride on the road to real estate investment riches.

1) Do put everything on paper and plan it out very carefully before you begin. If you are going to enter into this to make money you need to treat it like a business. This means you must have a plan of action and you need to make every effort to work towards carrying out that plan.
2) Do establish a budget for the entire project. You must have a plan for the budget you are willing to spend on the property itself, how much for repairs, and how much profit you need to make in order to be a good investment for your time and labor. A house flip is a lot of work in order to pull it off successfully. You want to have a good idea of how much homes in the neighborhood are worth, the value of your property as is and the estimated value of the property once improvements are made. In addition you should also have a pretty firm grasp of the costs involved in making the repairs in order to create a realistic budget for the entire project.
3) Do have an inspection--It is a must!!. This is the single most important detail that can save you a great deal of time, money, and heartache when everything is said and done. Be prepared to walk away from the deal if the inspection determines that there is to much more work needing to be done than simple cosmetic repairs. You want to make visible changes that people can see because those are the changes that raise the value or the cost of the house. You want to avoid needing to make changes and improvements that aren't visible but are very necessary. If you need to invest a lot of money and labor into the house you need to seriously consider the realistic profit potential the property offers. If it isn't significant then you need to walk away before the property becomes a real estate investment money pit.
4) Do get to know the neighborhood and plan your deal according to the needs of the area, rather than considering your personal tastes and needs in a home. This is another thing that many first time flippers forget. This is not a personal project it is a business project and you need to treat it as such. Keep costs down and feelings out.
5) Do remember that you are in the market to make money not waste money when it comes to establishing an asking price for the property. You've poured blood, sweat, and probably more than a few tears into your flip but you cannot set the value of the property by the effort you've placed into it. Have realistic expectations of how much you stand to earn from your efforts and how much you are willing to go down on the price in order to walk away with some profit in your pocket.

You should take a moment to think about the fact that many first time property flippers actually lose money on their first deal. If you make money at all, even a small profit you learned many valuable lessons that you can carry onto future deals and make more profit. More importantly the lessons you learn from your first flip are lessons that money really cannot buy so it is worth a lower profit or even taking a slight hit if your experience makes you even more money in the future as you continue along your real estate investment path.

Please don't forget to check out my blog at http://cashmoneyhousebuyerblog.com

Rolling Your 401k into Real Estate: Best Retirement Saving Plan

each one desires to lead relaxed tension-free life after getting retirement . One of the best retirement investment plans for you is to roll your IRA into real estate.

A popular way of retirement saving option you can have is an Individual Retirement Account - IRA. This holds double benefits. It can save your money and help you lessening your tax burden. You can roll your capital gains on the land into a future real estate acquisition . In this way you can get rid of the requirement of paying tax on the capital gains.

You can consult a finance expert. Ask him for advice regarding the tax treatment of any future change to your investment strategy. Even a small visit to a land banking specialist can help you out with past performance data from landbanking as an investment strategy. Do not take any past performance data as a prediction for the returns you expect. Past performance can not be taken an indicator of future earnings.

It can be very speculative sorts of investment if you invest your IRA into real estate. You can have well-planed selection for land. And you are bound to gain good gains. The best thing for you is to roll your IRA or 401(k) plans into a self directed type account.

The procedure for rolling over your IRA is not complex. It is simple and quite trouble-free. The procedure can take few days to a week after your old custodian frees your funds and terminates your account.

Land banking is safe and reliable for building personal wealth. You can thus secure a better retirement with the help of your 401k or IRA funds. It is better for you to invest your 401k into real estate. This will make you master your financial future. You will have the qualitative life as well. You can have the opportunity to change your circumstances into profits .

The benefits to purchasers of home auctions

For the fluctuating real estate industry, one particular niche offers a good advantage. Since then, property tax lien auctions have been the quickest growing within that meadow. could the reason be that the economy isn't at its most excellent and the rate of home foreclosures has never been so high? As homes go through foreclosure and repossession, the homes are sold at Property tax lien auctions to the person with the highest bid so that the mortgage companies can get back their losses. Since a foreclosure can look very bad on a property owner's credit report, most will avoid this by auctioning off their homes before it gets to this point. Over the next ten years according to some authorities, more than 35% of homes for sale will be purchased at Property tax lien auctions.

Some benefits sellers have when they decide to use Property tax lien auctions to sell their houses is the sale is quick and you don't have to wait for 'pending financing' rules set by the buyer. The money from the purchaser will be present at auction time
A homeowner who is auctioning off a house usually doesn't have time to wait for a buyer to get financing or to auction the house off again if the buyer's financing doesn't come through. 

Property tax lien auctions offer properties for sale "as is". Bidders know that they need to do some repairs and other things to take care of. It isn't compulsory for the buyer to be loving about spending a large amount of money on paint, new carpet or appliances before the auction of their house. The buyer will be responsible for replacing the water heater if it is about to malfunction. The purchasers widely know this when shopping Property tax lien auctions and they usually have a space where they're able to inspect the property before bidding at the auction. It is not the seller's fault if the buyer cannot bring a professional home inspector along and something doesn't work later. 

One of the benefits of property tax lien auctions for investors is not having to worry about potential buyers wanting to view the home at their convenience. Sellers have a life of their own, including families and even pets. The risk of getting a call at any time of day or night from an agent who would like to show the home is more than likely the hardest part about putting a house on the traditional market. Can they turn you down? They might, but they probably won't without at fewest seeing the home. If an agent can not be shown the home, they won't come back to call again. You have to be prepared at all times to show your home. The owner needs to keep their pets out of the house during showings, and keep it clean always. Sometimes it can be hard, especially when the call comes when you're having dinner or when you have a visitor.

Selling houses at Property Lien Auctions are an advantage to homeowners. Property tax lien auctions make it easy for homeowners to sell their home momentarily for any number of reasons. While the seller may get a lower price for the property than if they had sold it in the traditional way, tax lien auctions are worth the loss of profit for some sellers.

Get more info about Pre Foreclosure Property such as purchasing tax liens where you'll find all you need to know about the Buy Tax Lien Laws and much more.

Buying Costa Rican Property: Do Your Due Diligence

As with any major investment, when buying real estate in Costa Rica, it is important to do your due diligence.

This means getting all the data and statistics about all elements of your purchase. This means you need to understand what exactly you are buying, what the purchase includes and what the limitations (if any) are. In many areas, there are limits to building heights, depth of setbacks, and other details which you need to be aware of before purchasing there.

While the Internet has made real estate investing and land purchasing easier, it is wise to approach any large transactions from a perspective of information gathering and fact-finding. Do not try to buy land or homes without visiting them in person.

It can be tempting to try and purchase a beautiful piece of land from the Internet pictures, but you can make a grave mistake if you end up paying for land, or a home, or some property which is not what you actually take ownership of at the completion of the sale.

Some areas in Costa Rica can not be built upon, but since there are few regulations on who can sell land; the unwary buyer may end up purchasing land which can never be built on. This is why doing your due diligence is vitally important when investing in Costa Rica.

Also, it is vital to work with professionals and sellers who know the details of investing in this area. Work with a company or person who has a list of happy customers, has purchased property in the country him or herself and who can demonstrate experience in this area. Find someone you like and trust. Ask a lot of questions. Get expert advice.

The more you know, the better prepared you will be to make a good decision.

 

How To Find A Flip

Flipping houses is becoming increasingly popular. Unfortunately, the popularity of the idea is creating a bit of competition among those who would love to try it out for the first time. Since there is an increase in competition it often serves to raise the costs involved in purchasing the profit, which will only lower the profit potential. However if you find a good property and feel that the deal is a good candidate for a flip you can ask yourself the following questions to help determine whether or not the flip really is a good candidate.

1) Have you had a qualified inspection performed and has it been determined that the property has only minor repairs that need to be made and the landscaping? This is very important because every repair and improvement that needs to be made will spend more and more of your budget. You want to complete the project with as little extra money invested as possible in order to get the greatest return on your real estate investment possible.
2) Is the property suitable for the neighborhood? By this I mean is the property a 3 bedroom house built for families located in the middle of a retirement village or is it a 1 bedroom home in the middle of a family neighborhood? These aren't exactly a good match and can cause problems when it comes time to sell.
3) Can the neighborhood bear the price you need to bring in from the flip? If you are trying to create an upscale home in a middle class neighborhood you setting your self up for a loss on your investment. You will want to find a flip in need of repairs, that is selling for cheap in a neighborhood of better homes so that it will be able to bring in the profit you are hoping to get when it is all said and done.
4) Can you afford to make the changes you want for the house on the budget you have alotted and without drastically changing the structure of the house? This is a big one and one that very often gets overlooked. You usually do not want to start knocking out walls or making additions when flipping a property. That is something that should be left for the new owners. You don't want to make any waves if possible and only make the changes improvements that will raise the value of the home.
5) Can you improve and raise the value of the property enough to make it worth your while in a short period of time? This is another big deal when it comes to a house flip. It takes time and money to make the changes that most "flippers" have in mind for their investment, especially first time flippers. Do you have the motivation and time to stick with it and all the money to cover the carrying costs while you making the changes and improvements?
6) Is the property in a high demand neighborhood, city, etc. for selling properties? 1 more mistake would be buying in areas that are hard sells for buyers. It is often quite easy to find the lower priced properties that look appealing at first however; if you can't sell the property you purchase to flip, it really does defeat the purpose of putting all that time, effort, and money into making the repairs and improvements.
7) Can you do the work or will you need professionals and if so, will it still be cost effective? Be careful that you do not overestimate your abilities in this if possible. It is awesome to think you can put down a hardwood floor with quality work, but the reality of actually doing it is quite another thing all together. Be sure you have a realistic understanding of the potential costs involved in the flip and whether or not the property will still be profitable in the worst-case scenario.

Answer these questions when checking out potential real estate investment and house flipping properties and you should be well on your way to a successful flip, at least as far as the selection of the property goes. You should also find a house to flip that you like as you will likely be spending a great deal of time there.

5 Things You Must Not Do When Flipping A House

When it comes to making a profit in the business of flipping houses and other real estate investments you will find all kinds of do's and don'ts along the way. The truth is that these are extremely useful whether this is your very first flip or you have been flipping properties for 35 years.In fact you might just find out that you can learn something by reading like this, even if you've been flipping houses for 40 years and have completed many successful flips.

1) Don't forget to check out the neighborhood before you buy. You will want to make sure that the property you are considering is a good fit for the neighborhood. You should also make sure the plan you have drawn out for the property will match with the other neighborhood properties in order to make a quicker sale.
2) Don't blow your budget without good reason. Your budget is what you used to determine whether or not the house would be a profitable venture. If you blow your budget and cannot recover the extra money you've spent in the selling price on the house you will have seriously cut into your profits if not eliminated them all together. The goal in property flipping is to get in and out quickly and spend as little money as possible in order to make as much money as possible.
3) Don't forget to set daily goals and hold yourself accountable to those goals. If you don't reach your goals for the day it can set the entire project back by as much as a month depending on the goals and what has to be rearranged as a result. Stick to your timeline and your daily schedule in order to avoid potentially costly delays in time and money.
4) Don't neglect the exterior. Curb appeal is what brings buyers into the house. If you spend all your money, time, and effort making improvements to the interior of the home you will have very little left to make the outside appealing to potential buyers. A homebuyer is in the market for the entire package. A home that looks run down on the exterior leaves the lasting impression of being neglected on the inside and many buyers will never walk inside the house, if the outside looks bad.
5) Don't spend money you don't need to spend. While it would be great to put in granite countertops and gourmet kitchens into every home it isn't always practical and this is often money that will not be recovered, particularly in homes that are in marginal neighborhoods. If you want to get the most for your money avoid costly expenses that aren't exactly necessary for the successful completion of the flip. Resurface bathroom fixtures rather than replacing them if possible and use new cabinet doors or hardware rather than adding new cabinets all together to cut down on expenses. In other words, salvage what you can, fix what needs to be fixed, paint what you can, and add a few cosmetic touches before moving on.

The market for real estate is a very fickle market. Avoid spending too much time and money on a house that isn't going to recover those extra touches and expenses. Instead hold onto those ideas for higher end flips once you have a few successful flips under your belt.

Beginners Guide to Flipping Properties

Flipping houses is becoming big business in the world of real estate investment. Unfortunately it takes all kinds of 'flippers' to make the world go around and some of them aren't nearly as conscientious as others. If you are going to get into the business of flipping proeprties and want to make a good living, and build a good reputation, for producing good quality results you must see to a few details throughout the process.

1) Do what needs to be done. Don't cut corners and create situations that will put the family that purchases your home in personal or financial risk. You want to create a safe home for the family or person that ultimately makes the purchase. You can not accomplish this by taking shortcuts and using crappy workmanship.
2) Avoid spending money that doesn't need to be spent. By this I mean don't spend money creating more work. Most investors do this by tackling additions, ripping out walls, or changing the floor plans. These kinds of changes are best left to the buyer unless they will significantly improve the asking price you can bring in on the house. Otherwise spend most of your money in the kitchens and bathrooms where they are more likely to bring in bigger profits.
3) If it ain't broke don't fix it. There is a lot of wisdom and experience in this old saying. There is no reason to go in and fix something that doesn't need to be fixed unless doing so will improve the value of the house to its buyers.
4) Always work within a budget. Most people set a budget when planning to flip houses but very few manage to work within that budget. This is the difference in making the profits you anticipated and putting the entire project at risk.
5) Create a home that the buyer will want to live in not the home that you will want to live in. You should never flip a house or design a flip according to your tastes; it is a recipe for disasters in more ways than one. First of all, it is unlikely that buyers will be able to afford it. Second, it will set you up for feelings of rejection if a potential buyer rejects any of the small details. Third, it often raises the price you must seek for the property in order to cover the increased costs of decorating and designing according to your taste. Finally, it most often leads to unnecessary expenses, and more money and time spent which defeats the purpose of a quick flip type of project.
6) Time is money. Don't forget this in all things. The more time it takes to do the flip the more money it's going to cost and the less money you are going to make. Plan small changes and improvements that have a big impact on the property and can be completed quickly to get the most out of your flip.
7) Never attempt a champagne flip unless you have a champagne budget to back it up. Just as flipping above the market is not a wise move it is also equally unwise to flip a house beneath your target market as well. Don't attempt to flip a property in an upper class neighborhood if you can't afford the upper class building supplies and appliances that are needed in order to make it a success.

While these aren't guarantees for success they are solid advice that will minimize the risks you face when flipping properties.

Flipping Houses Is As Easy As ABC

All new things can be a little frightening or intimidating at first glance. The same is definitely true when it comes to flipping houses. Many people feel several times during their first flip that they have gotten in over their heads. The truth is that you will have to do more than a couple flips to get comfortable with the process. Most people make very little, if any real profit on their first flip and write it off as a learning experience only to enter into the next flip with newly learned lessons and a positive attitude. Learning the ABCs of flipping houses is a great place to begin and can help you avoid costly mistakes made by many first time flippers.

1) Appraise. You need to have a proper appraisal performed on the house you intend to flip and compare it to other houses in better condition and of similar size and style within the neighborhood. You do not want to buy the best house in the neighborhood, in fact it is best if you can find the neighborhood eyesore and turn it into a competitive house for the neighborhood in order to get the most for your money. More importantly you want the appraisal to reveal the actual value of the home now as compared to the price you are paying and talk to the appraiser about what the home would be worth the with improvements you are planning to make.
2) Bold Moves. Sometimes it takes bold moves to make the impression you want to make. The decision to flip houses is a bold move in and of itself and while you do not want to necessarily enter into risky waters you do not want to play it too safe either. Be cautious with your financing and guard your expenses and your budget well but make the changes that will catch the eye of the next owner for the property.
3) You must have a can do Attitude. You absolutely must have the confidence and believe that you can do this in order to get it done. A house flip is not an undertaking for the timid or those that lack self-confidences. You must stand up to the contractors, inspectors, and vendors in order for you to get the best posible price and the most for your dollar. In other words you need to believe in what you are doing and in yourself yourself in order to get it done. This doesn't mean you shouldn't listen to the advice of those with more experience and expertise, especially when it comes to structural issues within the home and bringing the property to code but you also need to stand up for yourself to insure that you aren't paying for things you aren't getting.
4) Determination. You must also be determined to see your project through to completion. It takes a certain sort of pigheadedness to get through the first few flips. It should be stated here and you should know that flipping property is certainly not an easy way to make a living. It does have the potential, to be a highly profitable and lucrative way to make a living and that is what most property flippers are looking for. If you want those profits you are going to need to push yourself out of bed even on those mornings when you feel as though looking at the property in question is going to make you wail and moan and pull out your hair.
5) Excitement. I think this may be the most important of all ingredients. You will find that excitement is in short supply many days but it if you can recapture that initial excitement over your decision to flip houses then it will sustain you on those days when the plumber brings bad news or you just learned that a solid weak of rain is forecasted for the weak the roof was to go on.

This is a small part of the ABCs of house flipping and real estate investing in general but I believe you get the picture. Good luck!

Creative Techniques For Financing Real Estate

Investing in real estate is one of the most effective ways accumulate wealth quickly when you do not have a lot of capital to invest up front. This all depends on your creativity however. Traditional real estate investing by definition involves the purchase, ownership, management, rental and/or sale of real estate for profit. Under this definition, real estate is an asset form with limited liquidity relative to other investments, and traditionally is highly dependent on cash flow, but when we look at creative ways of investing in real estate a lot more opportunities are open to us.


What are some ways to finance real esate creatively? There are many but here are some of the most popular to list a few:


Partnerships are fairly common because this is first thing a lot of real estate investors think about doing when they start out. They want to find somebody who can put up the money and split the deal with them fifty-fifty. This is an option but there are better ways to make a lot more.


Hard Money Lenders are individuals or companies that have cash ready for you to borrow. This is usually a much better alternative than traditional banks since it is a good source for getting funds quickly even if you have a low credit score. Many hard money lenders don’t like to lend more than 65% of the fair market value of a real estate property, so the better the deal, the more options you’ll have.


Private Lenders can be an even better alternative to hard money lenders because you can often arrange better terms since you are dealing with someone privately. Anyone, even friends or family can be a private lender. Everybody wins because you are offering them a much better rate of return than they will get in their savings or mutual funds and it’s secured by real estate.


“Subject to” Financing comes from the clause “subject to existing financing”. With this strategy you are leaving the existing financing in place and just taking over the payments on the sellers existing mortgage. Your name is no where on the loan. The sellers name will remain on the note. There are many other ways as well to do similar seller financing. This is an excellent strategy for those who have poor credit to begin investing quickly.


Wholesaling or Flippingare specific real estate investing strategies that are essentially creative solutions to eliminate the need for obtaining any funds at all. This is where you tie up a property at a discount (using an agreement) and then flip the property to another buyer or real estate investor for a quick profit. This is virtually risk free with no need for excessive cash, credit or financing and no need to do repairs or work yourself. This is why when it comes to making quick cash in real estate, this method of flipping houses is one the best routes to take not only for avoiding many of the financing headaches, it allows you to make cash more quickly for today's real estate market. It is smart to study as many options as you can and them compare the terms of each of them. Doing this will help you determine what works best based on your individual circumstances.

Whats so attractive about General Real Estate?

Even though there has been a lot of focus on the real estate market on the new lately, it has not stopped people from getting into the profession of real estate. Even with the over abundance of bad subprime mortgages which is driving the world into recession.

In reality real estate is a lot like the stock market and many people in general real estate are setting themselves up to make a small fortune when the economy cycles back around. It can be difficult to understand why people would still be interested in a career in general real estate even! after the real estate market has taken such a downturn.

What all intelligent investor in general real estate understand, is that the economy has it's fair run of cycles and for every bad turn there is a good turn right around the corner. Many people in the field of general real estate are buying property while the values are low and they will cash in when the economy! comes good again.

There are many attractions to getting into general real estate and those that do it for a living are well versed in how to maximize any type of market. To many people this is an exciting way to make a living while others would consider it an invitation to a heart attack.

If you are involved in general real estate then now is not the time to start to sell and the good investors and developers know that. This is a time to build your real estate portfolio and prepare for the upturn in the economy.

Knowing what is profitable in different types of markets and knowing what situations to avoid and recognize a money making situation when it presents itself, is what makes the real estate ventures worth their while. It takes many years and a great deal of education and training to becoming proficient in the general real estate business, but there is always money to be made if you just know how.

It's not as Easy as on Tv

One of the new popular types of television shows are the shows that talk about flipping a house. Flipping a house means buying an older run down property for a fraction of its real value, investing in rehabilitating the property, and then selling it for a profit. This is a more specific type of investment, yet many general real estate people get involved in flipping.

When the economy turns bad you are stuck with not only the properties you need to get an inflated dollar for but also you have to pay your contractors, this can be a problem you didn't see coming. This is the risky side of general real estate that only experienced people should attempt.

Real estate is a great investment if you know how to manage it. It is just like the stock market, you need to know when to get in and when to get out. Just like the stock market there is risk so be careful when you start investing in real estate.

Websites for Real Estate Investors

As a profitable real estate investor I regularly browse the internet longing for new utilities that can help me to make my business more efficient. One of the most time eating and costly tasks in that business is marketing.

Without an effective and efficient marketing solution I wouldn't be buying houses for very long. That's why I was so excited when I discovered a pair of real estate investor websites so affordable. Don't get me wrong, I've been around the block with scores of different applications out there but they are either cost ineffective or don't offer the traits I need. I'm proficient enough to write up these blog entries and post them here but I don't know the first thing about coding database tables, making forms or creating a contact management system.

EZWebSolutions.biz has come up with this inspired set of investor websites that has everything I was looking for in this type of solution. It's like the entire website is one big name and email capturer. Take a look at their We Buy Houses website and see what I mean. It has all the data capturing forms, teaser reports, graphics, professional look and admin panel that I could ask for. I don't even need to know how to code to manage the site! It has a point and click interface for me to manage the content of the site with ease.

Capturing motivated seller leads is completely systemetized. I can quickly create a pay-per-click campaign and get traffic to the site and essentially capture all the leads I can handle. I'm not sure how much longer the special will go on but they are currently offering a free autoresponder program with each website purchased so I decided to cancel my other autoresponder and saved myself $20 a month. I especially like the "We Buy Houses" website and they also offer similar sites for selling owner financed homes and finding lenders to fund my purchases.

Using this manner of marketing I'm averaging about 25 leads every 30 days that usually turn into 1 or 2 actual buys that we turn into serious greenbacks. Now my only continual expenses are the pay-per-click fees that I maintain with the click of a button at Google and Yahoo and a minimal monthly hosting fee which I was already paying for my poorly designed site! For a one-time $97 fee I've achieved my purpose an affordable solution and one that really works.

Real Estate Lead Capturing

Do you want to make your motivated lead capturing more efficient and run without your presence? I do and I've been searching for a way to do it. In the recent past there weren't many choices but today there are many. There are high-dollar solutions and cheap, get-you-by template systems. I have a moderate budget and I'm looking for something about mid-grade.

The main thing is that I want a site that I can send pay-per-click traffic to. This allows me to control the influx of traffic and the motivated seller leads I capture. I believe the other key is having an appealing looking site so that when leads get there they understand that I am a reputable business. I tried to create my own site once and I just don't have the skills to make it look polished. Now that I have a great looking portal I need it to be managable by me. Meaning that I want to be able to control the content without having to rely on a high-tech geek. The last issue is that I must have a way to deliver ongoing content to the motivated seller leads received. I know that I could use a 3rd party autoresponder but wouldn't it be nice if I could do it all from my own site?

I was seriously stoked when I found a set of investor websites that I was looking for. It's affordable too! it has the 3 "must haves" that were my requirements:

1. Excellent look
2. I don't need a geek to manage it
3. It has a built-in autoresponder

EZWebSolutions sells this series of investor websites that has a solution for buying properties, selling houses and seeking private lenders. Doesn't that cover all the bases? Well, it might be nice if there was a site that allowed me to sell properties to other investors but for now this is a perfect fit. The normal price for each of their sites is $197 but I've found that they are offering a discount right now where each site is just $97 and you can get discounts on multiple sites.

Wouldn't you know that I seemed to have found them at just the right time too! They just added this cutting edge technology that allows you to put up a squeeze page with the click of a button. I'm not kidding! It can be enabled with a checkbox in the administrative console. It uses the new Thickbox technology and has really allowed me to increase the number of motivated seller leads I'm capturing.

I hope this information is useful. it's a goldmine for my business and now I won't do business without these sites anytime in the near future.

How To Earn Easy Income by Referring Home Sellers and Buyers

We all like a little bit of extra income on the side, and what better way to earn easy income by referring potential home buyers or sellers. It is an easy thing to do, simply by sharing your stories or information with people around you, giving them an idea of where to look if they are interested in buying or selling a home.

Because the entire process of buying or selling homes can be stressful and difficult, giving someone the information to help them make educated and wise decisions concerning their choice to buy or sell a home, is an amazing thing to do. The entire concept of learning how to earn easy income by referring potential home buyers or sellers is made successful by people that are intent on sharing the information and on helping those trying to navigate the murky waters of home buying or home selling.

With the proper information, you will be aiding someone in their search for their new home purchase, while making some cash for your efforts. The main thing you will need to do is give ideas and information as they are needed to help the person or persons interested in the home buying or selling process. Making the process move more quickly is one of the many benefits of knowing and understanding before hand.

Take the time to become familiar with all important information before beginning the referral process. This enables you to handle any twists or turns that occur and allows for an uninterrupted flow of activity, giving you the chance to treat the prospective buyer or seller with the utmost attention, and to make their investment worth something to them.

Know the information and properties before talking to clients or prospective clients. They will want you to answer a myriad of questions before being satisfied of the situation and what they expect from it. Knowing before hand what you will be saying helps you to minimize any awkward moments and to rehearse your proper information.

Referring new buyers and sellers to a potential house dealer is always an easy way to make a good second income.

Finally, keep your lines of communication open at all times with both the client and with the potential home seller. A lack of communication is the most common issue that will be harmful to a new investment. It will show a lack of caution, as well as a lack of playing.

Timothy A. Crane Private Real Estate Investor We buy houses and help people with their situations and give them options that they did not know they had. Cash For Your Home http://www.cashmoneyhousebuyer.com

How Can a Short Sale Affect a Seller’s Credit

When compared to other options, such as foreclosure and bankruptcy, a short sale has a substantially better impact on a credit report. Though short selling your home will not improve your credit and certainly won’t look good on there, it will help you keep your head above water and will not destroy you for the long run.

·           Direct Impact on FICO Score
While people who have their homes foreclosed could see their credit score dip by 300 points, people who short sell their homes are looking at a loss of 80 to 100 points, at the most. This is because you are still giving the lenders something and in the end, you are showing the responsibility that lenders value.

 

·           How Long Will I Have to Wait to Buy Another Home?
  This is another area where short sellers benefit over their foreclosed counterparts. The waiting time for purchasing another home when you short sell is much shorter than the other options. In around 19 months, you can purchase another home at a decent interest rate. That means that you could conceivably be back on your feet in no time, establishing a new credit history.

Short Sale Deficiency Judgments

  Not everything is positive when it comes to short sales, though.  A seller could end up having to face a deficiency judgment, depending upon their home state.  This payment could be as much as the full difference of the total loan amount and the amount that you pay.  The laws on these judgments vary depending upon where you live, so it is important to review these laws in order to know what you might have in store. If you are held responsible for the repayment of such a loan, then short selling might not be a great option.

It will also be up to your lender to determine whether or not a deficiency judgment is in the cards. Because of this, having a discussion with your lender can often help you figure out what might be in store. A real estate attorney might also have some insight on this issue

You Can Make Money Even In Today's Real Estate Market

Worried about the future of the current real estate market? This actually the best time to make money for investors who understand what is happening today.


Real estate is cyclical and always has been. There was a large national article published that stated Las Vegas real estate had completely capped out and there was no place for it to go but down. Ironically, that article was published nearly half a century ago! Has real estate gone up in value in Las Vegas in the last 50 years? Absolutely and more than just a little! Am I saying that real estate values will increase like they have in the past? Don't plan on it, however I'll explain the benefit of this type of media coverage and how it is invaluable.

1. 
   
2. This creates fear preventing more people from investing but that only provides more opportunity for you.
   
3. It eliminates aggressive scam investments (as we saw rampant with builders in Florida and Las Vegas the last few years).
   
4. People begin to question the value of their property and that creates more flexible selllers.
   

This is something to think about: I don't know any successful real estate investors who are afraid of flat or falling house prices? Quite to the contrary, knowledgeable investors understand when markets are flat or down it just weeds out beginning investors, makes people panic and means more opportunity.


What's important to understand is just as real estate is cyclical, so are the amount of buyers and sellers in a given market.


It's more than just buying property hoping it will increase in value tommorrow. That’s not investing, that’s speculating! You are totally relying on future growth which is completly out of your control. In the short term, that kind of conventional thinking will not work in a declining or a flat real estate market. As in every business, a well calculated decision is vitally important. Creative, risk free offers based on your specific investing situation and setting up an appropiate exit is important in today's real estate environment.


There are also better creative real estate strategies for down and soft markets like wholesaling, flipping/assignments, lease options, foreclosures, short sales, and "subject to" investing. But even when doing rehabs or fixer uppers (which are not usually recommended in down markets) there are still good ways to make a good profit with the right system and proper planning, such as factoring in depreciation and extended selling possibilities.


This is why faster, lower risk, more creative real estate investing strategies like wholesaling houses are better to use during market declines. The point is market conditions should not determine whether or not you make money; it’s how you approach it and what is appropriate for the circumstances. When you structure risk free deals and make calculated decisions, the real estate market conditions will never be a determining factor of whether you are successful!

Real Estate Strategies For The Investor

Investing in real estate is a great way to make some extra money and diversify your portfolio as well. It is a good idea before you plunge into your first investment property to at least have some real estate investment strategies in mind. Savvy real estate investors look for properties that are below market value. A good way to find these is to look at buildings that are foreclosures. Some times you can rent or resell a property right after it has been forclosed on if it is ready. In order to sell some properties you may need to do some updates or renovations before they can be sold. Working with a trusted real estate agent who specializes in foreclosures, knowing what types of real estate you are interested in investing in ahead of time and making the best deal you can is the best way to come out ahead.

You need to learn the many different investment strategies before you begin to invest in real estate. The most common strategy that real estate investors use is the one that can lead to the most problems. That real estate investing strategy consists of buying properties which the investor believes will soon increase in value due to market-wide appreciation. Although this strategy can be used successfully, it is based on pure speculation and can fail. Three investment strategies that are based on fact and not speculation are listed as follows. The first is known as the bargain purchase. Choosing a prorperty using the bargain purchase method will often allow you to buy that property at twenty percent below market value. This allows them to make up to a twenty percent profit using this real estate investing strategy and is a great strategy to use when purchasing foreclosures.

The second strategy is known as the increase value strategy. The property would be purchased at the current market value using this strategy. There must be some improvements that could be done within a six month time period that would increase the value of the building by twenty percent for this strategy to be successful. The last strategy is the double digit cap rate which is the one many real estate investors use. The double digit cap rate strategy is used for buildings that have a capitalization rate of ten percent or more. The net operating income from the property divided by the purchase price is the captalization rate. These are harder to find unless the market is depressed or you are looking into small market niches. Whatever type of real estate investing strategy you choose it is wise to have a real estate agent on your side who can help you make the right decisions and tell you of any new listings, including foreclosures that you may be interested in.

Homezonedirect.net is a oraganization dedidicated to providing you with the most up to date and relevant information available to help you make the wisest choices regarding your home and financial future. Our team of committed experts scourthe internet searching for theright information so you can begin to understand these finacially troubling times we are in.

We are not here to sell you anything, we only want to provide you with as much information as you need to help you make the best decision for your family. 

Donald Who? Becoming A Real Estate Tycoon

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By Jim Nettleton

You’ve heard it a million times – most of America’s millionaires made their money in real estate. The reason this old adage gets repeated as often as it does is because it’s true.

Real estate provides an individual with the best possible set of scenarios with which to gain wealth. Not only can wealth be obtained, but it can be obtained quickly. A well thought out investing plan can potentially make an individual independently wealthy in less than a year.

Now, don’t panic. You don’t have to have a boatload of money to get your train out of the station. As a matter of fact, you don’t need any money at all to get started. If you play your cards right, you might not have to layout a penny of your own funds to build a true real estate empire.

Creative real estate investing has been at the forefront for many years now and with today’s market conditions, it shows absolutely no signs of slowing down. In fact, these tough economic times are, in many ways, the best of all times for real estate investors.

The downturn on a national level has opened many avenues that have always existed much wider in the past two or three years. The older, traditional methods of acquiring properties still work, of course. However, they don’t work very quickly. Purchasing properties with the intent of holding them and receiving rent from tenants can indeed make you wealthy. But it’s going to take a long time to do so and, along the way, there are countless headaches to deal with. Legal problems, tax problems, unhappy tenants, deadbeat tenants, repairs, destructive tenants, and the list goes on and on.

If you’re after building your cash worth rapidly and doing so without dealing with all those problems inherent in buying and holding onto properties, there are far better ways to do so.

I’ll explain three of the best in the totally free report you can obtain through the link in my resources box below. To give you a brief outline, I’ll explain Tax Lien Certificates and the leverage they can give you; buying and flipping foreclosures and property scouting, one of the easiest of all that requires not a red cent of your own money.

Finally, there is a quick method you can use to find investors in your area who are active in the purchase and/or remodeling of properties. You’ll want to build a database of these individuals to refer to when creating deals that need financial backing. Write down the numbers on all those “We Buy Houses” signs that are all over the place. Check the classifieds for similar advertisements. In most metropolitan areas you should be able to create a database of several dozen such individuals and companies in just a few days time. This can become your most valuable resource.

Good luck and happy investing.

About the author:

Jim Nettleton is a radio and TV professional with wide-ranging interests including a passionate interest in real estate. Get his totally free and informative report, “Secret Real Estate Income Streams Revealed” here: http://www.jaynetinc.com/RealEstate