Real Estate Update

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Obtaining real estate investing secrets often costs a pretty penny and rarely provides information that isn’t readily available. Perhaps the biggest investment secret is there are no secrets. Nearly everything you need to know can be found online and by networking with like-minded people.

It’s best to obtain real estate investing secrets for success from trustworthy sources such as Creative Real Estate Online or REIClub Real Estate Investing Community. These groups have solid credentials and members are eager to share insider-tips and strategies.

While investors can locate nearly anything they need online, it is important to investigate the source providing the information. Some self-proclaimed real estate gurus sell expensive courses offering the promise of wealth. They claim to teach students how to buy multi-million dollar properties with no money down, or promise to reveal strategies for buying bank owned real estate for pennies on the dollar. As they say, if it sounds too good to be true it probably is.

There is no need to invest money into real estate investing seminars or home study courses. At least not when starting out. Instead, investors can gather information by participating in online networking groups or by joining local real estate clubs.

One trusted online source for real estate investing information is REIClub.com. This investing community offers information on a wide range of topics, along with an active public forum where investors can share information and resources.

A good source for learning about real estate financing strategies is CREOnline.com; touted as the #1 real estate investment information site. Visitors can locate information regarding lease purchase option agreements, owner will finance, seller carry back mortgages, and more.

CREOnline presents articles about investing in distressed properties including foreclosure homes, real estate short sales, and bank owned real estate. Distressed real estate is often used for house flipping, rental property, or seller-financed homes.

Currently, many investors are investing in Fannie Mae Homepath properties and combining with federally-funded NSP grants. Fannie Mae has acquired numerous foreclosure homes through mortgage default.

Most Fannie Mae properties are in good condition and require minimal repair work. Properties requiring light renovation are sold using Home Path renovation mortgages which allow buyers to obtain additional funds for repairs.

HUDs Neighborhood Stabilization Program grants are offered to qualified buyers who purchase properties in areas with a high rate of foreclosure. Qualified investors can receive a maximum of five NSP grants.

One real estate investing secret that is not easily found is that of investing in probate real estate. Probate is required to settle decedent estates and can last several months. The estate is responsible for all expenses related to maintaining the property.

When estates cannot afford real estate expenses the probate administrator can sell the property. Investors who specialize in this niche can buy properties below market value while reducing financial stress for the estate.

Investing in probate real estate requires knowledge of state probate laws and proficiency in researching public records. Those who take time to learn the process can earn a good return on their investment.

While investment education is important, it’s also important to develop your own investment style. Write down your goals. Describe your perfect investment property. Do you want to specialize in a specific niche or diversify? Create a plan and develop short- and long-term goals. Stay flexible with plans so you can capitalize on investment opportunities.

If you invest in real estate it is worth trying to find a good estate agent.

A real estate agent is one of the most useful resources for a real estate investor.

An agent’s job hinges on being knowledgeable about the real estate market. This knowledge includes property that is available for purchase, the exact thing a real estate investor is looking for.

When you are working with a real estate agent, it is important that you get him or her to understand that you are not the typical buyer or seller. Most real estate agents, if they have worked with investors previously, will already be aware of this. However, there might be some instances that you have to educate the agent on the way real estate investors look at buying and selling real estate.

Whenever you make a connection with a new real estate agent, even one that is already aware of an investor’s viewpoint on real estate, it is necessary for you to let him know the criteria you use for purchasing investment properties. Doing this ensures the real estate agent will only contact you with properties that have investment potential for you

Sometimes agents have their own questionnaire forms for you to fill out. In any case, the key information you need to relay to the agent includes the following: the criteria you use to purchase a property, your goal for purchasing the property, whether or not you wish to be contacted about properties outside your criteria and goals, total number of properties that you might purchase at a time, and any issues with financing that you might have.

If you are an investor that primarily works with properties that you can fix and flip, you need to let your real estate agent know the kind of “fixing” you prefer to do with your property. You might only want to do light repairs such as painting, replacing fixtures, etc. Perhaps, you are not one that shies away from houses that need extensive repairs like plumbing or foundation repairs. It is important to let your real estate agent know these criteria as well.

Keep in mind that real estate agents are paid commission based on the price of the property. When you purchase a low-priced property, the agent makes a low amount of commission on this property.

Unless you plan on doing the extra work associated with the purchase, like writing up the offers, it is a better business practice to compensate the agent for the time spent working with you. If the agent spends a great deal of time showing you properties, consider negotiating an hourly wage. The real estate agent will see that you value his time and is more likely to notify you with good investing deals.

In your career as a real estate investor, you will meet many people that will be of use to you. The real estate agent is perhaps one of the most important of these.

Maintain a good working relationship with agents by being clear on what you are looking for and compensating him for the time he spends working with you.

7 Simple Steps To Real Estate Investing

Whether you are BRAND NEW to real estate investing or an expert in the game, it’s critical that you understand these 7 Simple Steps to real estate investing.

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First things first…

• Real Estate is NOT a get rich quick scheme. However, if you learn the foundations and put them into practice, you will make more than enough money to realize any and all of your dreams and goals.

• The real estate bubble is not going to burst! The real estate market will, however, shift and the real estate market will change – just as it always has! What’s “hot” now may turn ice cold in the next 3 years (or perhaps even 3 months). But, there are ways to “bubble proof” your real estate investments. It’s actually quite simple.

Did you know that in the United States, in 1975, the median home price was ,300? In 2005, the median home price was 5,000. Historically, the average home doubled every 7 years. If you do the math, it should be well over 0,000.

OK… Now, having said that… The real estate market WILL change and what is “working” today in real estate may not in the future…  The rental market was strong a decade ago, but has been soft in recent years. We are getting ready for a turn once again.

Real Estate IS a cycle… and cycles have some degree of predictability. With predictability, you can grow your real estate business into a cash-producing, profit-pulling machine that runs itself WITH the changing real estate market trends. It is still possible to make money in real estate. In fact, now is just as good a time as any to get started in real estate investing.

But, you’ve got to make wise investments. Sure, you may make some SERIOUS cash in pre-construction, but what happens if (no, not if – when) the market shifts and there are suddenly 35 identical properties on the market for sale in the same building? How long can you afford to carry a negative cash flow on the property?

Or how about taking over property ‘subject to’? Sure, it’s a great strategy and lenders may be inclined to turn the other way and not exercise the “due on sale” clause as long as the interest rates are at rock bottom prices (You know, those sellers that you’re usually taking property subject to from usually don’t have the lowest interest rates, right?)

If the interest rates spike to 10-11%, don’t you think lenders might be MUCH MORE inclined to exercise their option to make you pay off the 6.5% note?

What this means is simply that you must be experienced in the basics – the tried and true techniques, strategies and systems that have worked in the past, are STILL working and will work in the future.

You’ve got to have all the tools in your bag so that you can go with the flow and not be affected when real estate markets begin to shift (which they are already in the process of doing, in case you’ve missed that memo!

Step #1 – Set your plan: Figure out what your long term real estate goals are (aka retirement and wealth building) and figure out what your short term needs are with regard to making money in real estate. Then, set up the proper entities and put the plan in place.

Step #2 – Determine what your target market will be: You cannot be all things to all real estate markets. If foreclosures appeal to you, start investing in the foreclosure market. If you want to be a landlord, look to out of state owners to focus your real estate marketing efforts.

Step #3 – Be consistent and persistent: Real Estate is not a get rich quick scheme. Real Estate is get wealthy over time and put some quick cash in your pocket today. You’ve got to follow your plan and stick with it to see real results in real estate. You’ve also got to continue to increase your education and your experience.

Step 4 – Don’t fall into the “Analysis Paralysis”: Learn to analyze properties quickly. Don’t get caught up overthinking. It’s quite simple actually: What’s the property worth? What does the property need for repairs? And how much can you get the property for? It all comes down to numbers!

Step 5 – Become a master of finance!: Real estate is the business of marketing and finance. You must learn about mortgages and interest rates and loan programs that are out there. You must know how to use finance to negotiate your deals and to sell your properties.

Step #6 – Become a skilled problem solver: The reason you will get real estate deals that others don’t, is because you are able to solve people’s problems. Anything goes on the real estate playing field. You’ve got to be ready!

Step #7 – You must continue your education: It is important that you are always investing in your education and learning new tactics, strategies and tips that will help you make more in real estate.

If you enjoyed this article, make sure to look up the other articles discussing The 7 Simple Steps To Making Money on Real Estate.  The next article discusses Step #1 – set your plan in further detail!

7 Simple Steps To Real Estate Investing

Whether you are buying a home or selling a home, you are most likely going to need the services of a real estate agent.

It is best to avoid pushy ones for the following reasons:

Most people have seen movies and heard horror stories about pushy real estate agents that try to get you to buy a home you aren’t interested in or list your home for a price well above what it’s worth. The last thing you want is for the real estate agent you work with to be anything like the stereotypes.

A real estate agent’s success will tell you a lot about how he or she works. How many homes does that agent sell? An successful agent that sales many homes is usually easy to work with. When you are interviewing real estate agents you might find it helpful to ask for references.

Of course, these references should have experiences relevant to the services you are looking for. If you are buying a home from the real estate agent, speaking to someone who has had a positive selling experience with the agent will not be of much help.

Choose an agent based on a referral you receive from someone you trust. When a friend or family member gives you the name of a real estate agent, there is a greater chance of you having a successful experience with the agent, than if you randomly choose one from the telephone book.

Make sure the person who is referring the real estate to you has had a recent experience in working with the agent.

If you are a buyer working with a real estate agent, make sure to give the agent the details you are looking for in a home along with the maximum price you are willing to pay. Your agent should make every agent to show you homes that meet the criteria. There are some agents that will attempt to show you homes that are above your maximum price or do not meet your priority criteria.

Usually this happens because the agent has some ulterior motive for selling the property. Respond to this situation the first time by asking that the real estate agent only show you homes that meet your criteria. If the agent continues to disrespect your wishes, you should move on to an agent that will abide by your requests.

Pushy real estate agents are fairly easy to recognize. You will notice that the agent does not truly seem interested in your needs or wants. The agent’s primary concern will be to sell you something.

For buyers, the pushy agents will try whatever is necessary to get you to purchase a home that you aren’t interested in. These agents might express frustration when you do not make a swift enough decision to meet their satisfaction.

When working with a seller’s agent, be wary of real estate agents that pressure you to make decisions before you are comfortable with working with them. A professional agent will assist you in making educated decisions based on facts. This kind of agent will even provide you with the information necessary. If you feel that a real estate agent does not have your best interests in mind, kindly thank them for their services, and enlist the services of another real estate professional.

If you are buying a home, choosing a real estate agent may be the most important decision you make. A good real estate agent can help ensure that you are notified of homes that meet all your criteria. A good agent will also answer your questions and will walk you through the buying process, which is an invaluable service for first-time homebuyers. Despite all this, most buyers choose their agent in a completely haphazard way, simply falling into a relationship with the first real estate agent they encounter. A much better strategy is to do some sleuthing to uncover the agent who will truly help you find that perfect property. You can find the right professional by:

1) Interviewing candidates. It may seem like a lot of work, but comparing different real estate agents from different agencies can quickly show you which agents you respond best to and which ones seem to offer the best service. Interviews also allow you to assess experience, education, and other factors important in a good real estate agent.

2) Checking qualifications and sales. Look for a real estate agent who has some experience and has been on the job long enough to have expertise in the area. Ideally, you want someone who has worked as an agent for years in the same area and has an impressive sales record. In every community, you will generally find a few agents who perform very well because they know what they are doing and are good at what they do. Look for these agents and check to make sure that no complaints have been filed about them with the State Board of Realtors.

3) Lining up personalities. Buying real estate is highly emotional, so it is important to find someone you are compatible with. Look for a real estate agent you can really communicate with. If your personalities do not match, you may feel that your real estate agent is not doing enough for you and your real estate agent may get frustrated that you are not placing any bids. Find someone that registers a high comfort level with you and you can avoid these problems.

4) Making sure that your real estate agent is creative. Your agent will use the Multiple Listing Service (M.L.S.) to find homes, but he or she should also use their knowledge, contacts and experience to find homes that match your needs. You don’t want someone who can simply run simplistic searches you can run yourself from home.

5) Ensuring that your agent knows the area. A real estate agent who knows the area where you hope to buy can help you understand what is available and at what prices.

6) Checking customer service before you enter into a relationship. Real estate agents are busy people, but they should still be able to offer you good care. Your phone calls should be returned, your concerns should be addressed and you should be able to contact your real estate agent when you need to. If your agent uses an assistant, you need to ensure that it is the real estate agent themselves who will handle all work with contracts as well as the closing. That is what you are paying your real estate agent for. Stay away from agents who seem distracted, disorganized, and are not able to interact with you personally. You may find that your home buying experience suffers with these sort of agents.

The good news is that there are plenty of terrific, highly qualified real estate agents out there. Now that you know what to look for, you can hunt them up and have superlative help when it is time for you to buy property.