Real Estate Investing For Beginners

As a beginner in the real estate investment business you would want to try your hand at something which is simple to pursue and also has a large profit margin. The wisest choice you could make is getting into real estate wholesaling business.

So what is exactly real estate wholesaling?

As a real estate wholesaler your job is to simply finding a particular piece of property or real estate. What you need to do then is to pass it on to a prospective buyer or an investor. Now this buyer may buy the property for himself or may decide to resell it for a higher price or may rent it out. In this business you can easily make up to $5000 to $10000 from each and every house you sell, your commission depending upon the type of deals you manage to strike.

You may ask exactly why should you get into wholesaling?

There are a number of reasons why a beginner like you in the real estate investment business should choose to start with wholesaling or flipping houses as it is popularly called.

The first is low investment. You need not own the property you are bargaining for. All you need to find a property that will fetch a good bargain value. You do not have to take over the ownership of the said property . You only need to take it under contract and sell it to the best buyer.

The second reason for getting into real estate business is quick and fast cash. A real estate wholesaling deal can be easily finalized in 7 to 45 days. So no longer do you have to wait for payments. It is a very good way to have cash in your pockets should be in need of some.

Thirdly, you can benefit from the real estate wholesaling business if you are someone who is good at finding houses. It is not possible for you to buy all the property you come across. If you are into real estate wholesaling the real estates you come across, even if you can’t buy them at the moment, you can take it under contract and bargain for it. This way you can even profit from your skills on locating good properties.

And lastly flexibility. The flexibility offered real estate wholesaling business is unparalleled. You have the power to choose. You can do what you want with the piece of land that you come across. If you are in need of immediate cash you can choose to bargain for it and sell it to a buyer without actually owning or buying the property. Or if you feel so you can purchase the property for yourself and then either sell it yourself or rent it out.

Real Estate Wholesaling ? Quick Money!

After completing all the procedures employed in acquiring a property, your next step is to look out for prospective renters. There are two alternatives for you to work out. You either decide to carry out all the work yourself or hire a real estate agent to do it for yourself. There are several responsibilities to fulfill when deciding to manage property on your own. As a first step you need to search for probable tenants to rent your property. As self-managing landlords you need to oversee all the aspects of the property in addition to direct dealings with the tenants. It is important to hand over a written residential tenancy agreement to the tenant at the time of occupancy.

By leasing the property yourself, you save money by cutting down your expenses. It is your duty as a private landlord to look after the cleanliness and maintenance of residential premises. In overseeing all the problems yourself you get to learn numerous vital skills that can be employed in curbing expenses. These trifle savings can be remarkable over time. However, you tend to lose a lot of your quality time in managing property yourself. Attending to the complaints of the tenants in ever busy life style can be nerve wrecking at times. In addition to that you are also required to execute all the legal formalities yourself. Managing property requires tremendous endeavor to meet the complex demands, but it can be made profitable by simply planning and accomplishing a handful of strategies resulting in saving of both time and money. There is no doubt on the fact that the gains potentially surpass the negative values.

On the other hand getting your property managed by an agent involves appointing one to oversee all the tenancy requirements. You need to be very careful when selecting an estate agent for yourself. It is of utmost importance to hire an agent from professional associations. Get an appraisal of your property done by several agents in addition to understanding their services and finally choose the best one for yourself. You need to sign a written contract with the agent featuring the terms of service, fees and several other clauses.

In getting your property managed by an experienced and qualified estate agent you save a considerable amount of time for yourself. On freeing yourself of the management responsibilities you can focus on buying other investment properties. With his/her expertise a real estate agent is more likely to select a high quality tenant for you. It becomes the duty of the estate agent to manage the property on daily basis and fix all the major and minor repairs. The estate agent will be responsible for collecting the monthly rentals for you in addition to conducting regular inspection on the property. The agent also looks after all the rental agreements and paper work thereby freeing you from all the legalities. However, engaging an estate agent for property can consume a substantial percentage of your income.

Nonetheless on deciding any of the above approach you need to prioritize either your money or your time. The choice is completely yours.

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Can Investors Who Buy Homes Profit in a Distressed Real Estate Market?

Today, investors who buy homes have more opportunities than ever before. The downturned real estate market and credit crisis have led to an abundance of foreclosure and bank owned properties. Investors can purchase single family homes to sprawling mansions for as low as half of their original value.

Distressed properties can yield substantial profit for investors who buy homes. Many investors purchase foreclosure and bank owned real estate with the intent of rehabbing the house and quickly selling it for profit. Others engage in wholesaling; a form a house flipping that does not require anything more than locating a qualified buyer.

In order to purchase foreclosure homes, investors must bid on properties through public auctions. If no one places a bid on the property it is returned to the bank. Once real estate is owned by the bank, investors must submit bids through the bank’s loss mitigation department.

Bank loss mitigators negotiate real estate deals between investors and lenders. Loss mitigators do not approve or deny offers made on distressed properties. However, they can be instrumental in providing information to investors which can help them seal the deal.

Anyone who has worked with a lender’s loss mitigation department will tell you it is crucial to be nice to bank loss mitigators. The individuals can make or break your real estate deal. Realize, these individuals are usually overworked and underpaid. Being respectful and polite will go a long way in obtaining properties for sale through lending institutions.

Distressed properties generally require repairs and renovations. These can range from adding a new coat of paint to interior or exterior walls to complete demolition. Common repairs include appliance upgrades, replacement of flooring or carpet, plumbing and electrical upgrades, and repair or replacement of HVAC systems.

Returning homes to their original luster requires both time and money. Real estate investors that engage in rehabbing homes will need to organize a team of contractors and subcontractors to restore the property. Workers need to be expedient with repairs and renovations. Otherwise, the renovation will take longer than expected and cut into the investor’s projected cash flow.

Rehabbed properties can be sold for profit or used as rental homes. Houses can be leased on a long- or short-term basis. Some investors purchase homes located in popular vacation spots and rent the property to tourists.

Investors who buy homes for use as vacation rentals must calculate expenses associated with short term rentals. Most vacation rentals are furnished and equipped with all the comforts of home. Vacation homes must be cleaned after each use.

Most investors require tenants to provide a security deposit. If the tenant causes damage to the property, investors must provide evidence as to why they retained all or part of the security deposit. Some states require investors to obtain a license for short term rentals, while other states require landlords to charge sales tax. Regardless of whether the home is being rented on a short- or long-term basis, it is imperative for investors to fully understand the landlord / tenant laws of the state where the property is located. Otherwise, investors could be setting their self up for lawsuits.

Probate homes are another popular choice amongst investors who buy homes. Probate properties include real estate which belonged to a person who has died. During the probate process the decedent’s estate is required to pay expenses related to the real estate such as mortgage payments, property taxes, homeowners insurance and general maintenance.

If the estate does not possess sufficient funds to cover expenses, the estate administrator can sell the property to eliminate financial burdens. It is not uncommon for probate properties to be sold for pennies on the dollar.

Probate real estate can be located through probate courts. Investors will need to research courthouse records to locate homes held in probate. Once properties are located, investors must contact the estate administrator to begin negotiations.

These are just a few investment opportunities for investors who buy homes. If you are considering investing in real estate, it is imperative to develop a strategy. Create a business plan, engage in market research, become educated about real estate laws, and organize a team of real estate professionals.

What Is A Real Estate Wholesale Deal?

Real Simple! Here is how a wholesale deal makes you and I quick money deal after deal! Let’s break it down!
First: You find a motivated seller, Someone who really needs to sell badly. You make a wholesale priced offer (usually 40 to 60 cents on the dollar) and get that property under contract with that seller. In this example we will say that the house’s fair market value is $ 100,000.00 and we got the seller to agree to sell it to us for

$ 50,000.00. We have it under contract for 50 cents on the dollar!

Second: You find a buyer that wants to purchase the property you just put under contract with the motivated seller, and he agrees to buy it from us for let’s say $ 60,000.00. He realizes that he is getting a 100K property for 60 cents on the dollar and that he is getting a great deal on a property worth 100K when fixed up!

Third: We then go to closing and we buy it for 50K from the motivated seller and complete that transaction. Then, we turn right around immediately and resell that same property to our buyer that we found who wants to buy the property from us at 60K and complete that transaction.

So, what have we done: We paid 50K for the house and we turned right around and sold the house for 60K the SAME DAY, and we make a quick $ 10,000.00! This was a win-win-win deal for all parties involved, and here’s why:

1.) The original seller unloaded a problem house and moved on with their life!
2.) Our buyer just bought a GREAT piece of real estate at a wholesale price that he will now rent for cash flow or fix and resell at a nice profit.
3.) And you (the wholesaler) pocketed $ 10,000.00 for combining a motivated seller with a motivated real estate investor buyer!
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California Investment: Strategies for Expanding Your Real Estate Portfolio

In recent years, the California investment market has witnessed erratic swings in real estate prices. Although infamous for being home to some of the world’s most expensive real estate, more than half a million people move to the Golden State each year.

California investment properties can yield substantial income to investors who understand the market. Housing prices have dropped as much as 30-percent in some locations. Many investors are buying homes at warp speed in order to capitalize on reduced housing prices.

California is a desirable place for people to reside and a popular vacation destination. Residents and tourists can enjoy a wide range of activities including golf, horseback riding, whale watching, deep sea fishing, snow skiing, snowboarding, and visiting the numerous theme parks. California offers something for everyone, regardless of their age.

Prior to purchasing California investment properties, real estate investors should become educated about the market. The Internet is a good place to start. Investors can review comparable sales reports, obtain information about schools, employment opportunities, and anticipated growth cycles.

Once investors determine the location of potentialinvestment properties, they should begin networking with other real estate professionals in the area. This can be accomplished by attending investment group meetings or through online networking forums.

It is essential for investors to understand California real estate laws. California is known for having some of the strictest laws on the books. Experts recommend consulting with attorneys to ensure compliance.

Foreclosure homes are a popular choice amongst real estate investors. California is ranked third in the nation for hardest hit foreclosure states. Experts claim more than 100,000 homes are currently vacant due to foreclosure. Many of these homes can be purchased for half of their original cost.

Wholesaling is another popular investment technique. Some investors purchase bank portfolios consisting of 100 or more properties. Since they buy in bulk, investors can purchase distressed properties for as little as 30 cents on the dollar.

These properties are sold “as-is” to buyers. The investor doesn’t make any repairs or invest additional funds into the property. Investors typically sell these properties well under market value in order to attract buyers.

A somewhat “secret” California investment opportunity is that of probate real estate. If a person dies without establishing a trust, everything they own is transferred to probate. The probate process establishes the estate’s value, validates the decedent’s Last Will and Testament, pays outstanding debts, and distributes assets to heirs.

When real estate is held in probate, related expenses can bankrupt the estate. Probate administrators can elect to sell the real estate to eliminate financial burdens.

Locating probate real estate involves searching public records at local courthouses where probate is handled. Investors can obtain contact information of the estate through probate documents. In some states, estate administrators must receive authorization from the court before selling the property.

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How You Can Use Rehab, Refinance and Cash Out as Long – Term Wealth Building Real Estate Investing

Today we are discussing a somewhat advanced strategy for you to use after you have been in the creative real estate investing business for a while. I call this “Rehab, Refinance, and Cash Out”. This strategy can lead to true long term wealth and financial independence. This works very well in a buyers market like Memphis where prices have been quite flat for some time. You need to use this to augment your wholesaling for immediate income and retailing for bigger short term profits. Rehab, Refinance and Cash Out is a long term wealth building strategy and will be something you will be glad you did as it is a long term buy and hold strategy, and those are the strategies that lead to true wealth accumulation and financial independence.

Let me explain how this works. You find a good middle to low end 3 bedroom home that you are able to buy from an out of state owner or other motivated seller that needs a little work and you buy at 60% of after repaired value. You buy the house using a hard money lender like http://www.pleaseclose.com/memphistrading and do your fix up and have a property management firm manage the property and put a renter in the house. The hard money lender will typically loan you up to 65% of the after repaired value to purchase the house which you use to buy the house and then repair it. Now that the home is repaired you obtain an investor friendly mortgage and cash out by refinancing at 80-90% of after repaired retail value and you should be doing this with properties where this strategy gives you back at least $10,000 at the refinance that you can use in your business any way you need. Do not use this money to live on, use it solely to grow your real estate business. Once you have done this strategy on 10 homes you should be able to keep finding better and better deals because you can close quickly as you have cash in hand to make things happen. More cash equals better deals and more opportunities.

By the time you repeat this strategy 20 times you should have at least $200,000 cash plus about $200,000 equity and 20 homes giving you at least $2000 per month positive cash flow whether you decide to work this month or not since you have a property management company handling things for you. With average annual rent increases, within five years that $2,000 a month should grow to $4,000 a month. In 30 years you should have $2 to 3 million plus in paid off real estate. It’s a good solid long term strategy to add to your immediate selling from wholesaling, retailing and lease options that the extra $200,000 in cash will help grow tremendously.

The rent minus the management fees and all loan and other costs must leave you with positive cash flow or this strategy should be avoided. If you cannot cash out on the property I don’t recommend holding it long term as you want to be able to use your best mortgages to cash out.

You can purchase using http://www.pleaseclose.com/memphistrading if your Equifax credit score is above 550(which is bad credit) or you have a co-borrower who has an Equifax score over 550. A good investor friendly mortgage company will give you good rates if you are at 660 middle score or above and the very best rates if your middle score is 720 or above. Your first 10 investor mortgages in your name and 10 in your spouses name are the easiest to qualify and get the best deals. After those you really need a good investor mortgage company to work with. Take the time to find the real investor friendly mortgage companies that can help you get loans for 100 properties and not just the first ten and let them have the easy ones and the tougher ones. I do recommend having more than one good lender available though, but stick to the ones that specialize in investor loans. Find out from other investors who the most investor friendly mortgage companies are to use to refinance the repaired home.

I do not advocate becoming a landlord as I do not believe this is a valuable usage of your time and energy. I highly recommend asking around and finding a good property management company that will charge you 10% or less to start out with and gradually lower that % as you add more and more properties.

I feel this is an advanced strategy as you won’t see any cash in your pocket from this strategy for 4-6 months after you find the deal which is a long time to work and not see any pay. If you are wholesaling and making consistent money each month then it shouldn’t matter. This strategy will magnify the profits you make in your investing business in ways you might not have imagined. This strategy is a natural progression from wholesaling as you are already helping others find these kinds of deals, now you will be able to get the cash out typical of probably 2 wholesale deals, just paid slower, and at the same time building a nice future nest egg.

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The story behind the “We Buy Houses” Bandit signs explained.

Contrary to bias and fraudulent reporting by people such as Adam Meister of the Baltimore Examiner. The people who use bandit signs to market their services aren’t some sort of band of thieves waiting to steal houses from little old ladies. Normally the people who hate bandit signs tend to be very ignorant to the facts of who uses them and why. www.examiner.com people who use “We buy houses” bandit signs are merely real estate investors. They use bandit signs as a inexpensive form of marketing in which to get their message out to home sellers that they “buy houses”. Mr. Meister doesn’t know anything about real estate investors. His story proves that much. It is real estate investors who are spending millions of dollars providing shelter and affordable houses for people in Baltimore and people across the country. Don’t wait for Adam to acknowledge that small fact. His bias is a poor substitution for the cold hard facts. This is where I come in.

The Famed Simultaneous Closing in Real Estate Investment

There are many ways to close a deal in real estate investing. As a foreclosure investor you’ve probably heard of the famed, simultaneous closing, when purchasing a property from the homeowner. It’s a great way to make a profit on your time and effort without using your own money to purchase a property.

A simultaneous close is when you buy the property from the homeowner and then immediately turn around and sell that property to an investor. You very often are only on the title of the property for a few minutes at a time. Plus, you can often arrange the deal so that you end up buying that house with your investor’s money!

How the Simultaneous Close is Initiated

You initiate a simultaneous close on a property sale by asking your investor to wire their money into the title company that you are using for escrow. You have already given the title company prepares the two closing documents; one is where you buy the house for $70,000 and the other is where you sell the house to your investor for say $90,000. That means you get a profit of $20,000 after both closings are complete.

When the title company prepares both of these documents at once, they’ll notice that your buyer has already wired their money into the company’s escrow account. The title company will see that when you sell this property to your buyer you’ll be getting $90,000 and that the buyer has already transferred his or her money into the title company.

So, rather than asking you to wire your own money into the title company so they can initiate the first sale (from the homeowner to you) they’ll just use $70,000 of the $90,000 that’s been transferred into the title company by your buyer. Then, they’ll turn around and complete the second sale (from you to the buyer) and leave you with $20,000 profit without even using your own money!

Basically you’ve just ‘flipped’ a house, which in proper terminology is referred to as ‘Wholesaling’ a house and all without using your own money! As you can imagine there is a little more to the process of making a simultaneous close, but this is the gist of the procedure. It’s an excellent way to get involved in real estate investment and get profits with very little starting cash.

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Short Sale Basics for All Real Estate Investors

In the mortgage industry, the term “short sale” refers to the process of a bank holding a mortgage to accept less than the seller owes on that mortgage in exchange for the deed on the property. For example, John Smith owes $100,000 on his mortgage and is unable to make the regular monthly mortgage payments and it goes into foreclosure. If you are interested in the property, you can sometimes negotiate with the bank to accept $70,000 -80,000 on the mortgage, rather than have the bank take over the property through the foreclosure process.

In the scenario above the bank wins because they are able to dump the property before they own it and have to deal with selling it. In addition, you as the investor win if you can then turn around and sell that property for its fair market value to someone else.

In the above scenario, even if the market value of the property is $100,000, and John Smith had no equity in the property, if you can discount the mortgage down lower with the bank, and then sell the property to someone else for market value, you have essentially created $20,000 – $30,000 in equity. This created equity is then your profit on the transaction.

Mortgage foreclosure issues are rampant in the news these days. And, because of the large number of foreclosures, banks are more willing than ever to negotiate short sales if they mean that they can get out of a property without loosing too much money. After all, banks are in the business of money not holding and selling properties. As a real estate investor, you can use this fact to your advantage.

For real estate investors, especially those interested in wholesaling properties to other investors, working short sales and thus creating equity can be quiet lucrative. The key to getting your short sale approved by the bank is in showing the bank why they don’t want the property and how you can make them a good deal to take it off of their hands.

How to Sell Real Estate Property More Quickly Using Better Curb Appeal

When you’re getting ready to sell a property or other investment, there are a lot of things you can do to curb appeal so everything works in your favor. Statistics show that potential buyers decide in about the first 10 seconds of seeing the outside of a house whether they want to see the inside. This is one of the single most important things you can do to attract buyers initially. Not only so you can get more for your property, but also sell it faster than you might otherwise. Here are some cost effect things you can do quickly the make your real esatet investment more profitible. You may be familiar with some of these concepts but are you using them all to your advantage? A lot of these principles also apply for creative real estate investing strategies like foreclosures, flipping, wholesaling, lease options, property assignments and rehabs.

Aside from standard cleaning, here are some of the most important things you can do to have the most impact with minimal cost:

• First of all, trim shrubs, grass and clean up flower beds

• Many investment properties can be made to look like new by simply pressure washing exterior walls

• Use touch up paint where you can avoid repainting entire rooms

• When new paint is needed, use neutral, lighter colors that will appeal to more buyers.

• Eliminate or replace “dated” features like wall paper, old fixtures and knobs

• Eliminate clutter or garbage including that in closets and pantries

• Have the carpets cleaned or replace areas that absolutely need it

• You can repaint the front door if needed to add color and definition.

• Sweep and clean the pathway to the front porch

• Clean out gutters and spouts

• Remove oils stains in the driveway

• Fix any cracks, leaks or stains

• Put down welcome mats or replace old ones

• If room permits, add a small bench or seating on the porch or just inside the entry.

• Add color to the entry way with flower pots on the porch

• Replace old or dim lights with new brighter ones

• Clean or re-grout tile including showers and bathrooms

• Clean or replace old blinds, drapes and shower curtains. Get rid of dated drapes and make sure as much natural light can get into the house as possible

• Clean handrails, light switches and door handles

• Wash windows and mirrors

• Air out the house and use natural air fresheners. Avoid chemical based air fresheners or sprays; there are many people that have allergic reactions to them.

Remember, you don’t have to break the bank with excessive remodeling; many of the things we’ve talked about will not cost very much but make a big difference. Some of the small details will actually do more for you then expensive renovations. This will be particularly advantageous, especially when you are wholesale real estate investing and similar effective quick cash investment strategies!

Real Estate Investing Ethics

Many people have a wrong notion about real estate investors, considering them to be piranhas, sharks and vultures. Some people feel that the investors thrive by taking advantage of the people who are in distress.

Actually investors are a group of people who guide folks out of stressful conditions. These folks are people who have gotten into the stressful situation themselves, and the investor offers them solutions to their predicament.

However, like in every other industry, there are negative elements in the realm of real estate investment as well. When one investor tries to cheat another person out of a deal, it spoils the reputation of the whole industry. If you are the one selling property, you should never steal any other investors clients. All the investors should work as a team and inform everybody if such bad practices occur.

Dealing with clients – If you have a property and you plan to wholesale it, then you should call all the investors you know to do a drive-by. If you put a sign in your yard then the investors who were sent by others can contact you directly, and if they do so, then you must collect their information source details, and tell them to call the investor who sent them. Never cut other investors out of a deal, as each is trying to make a living, and is trying to sell your property. Stealing other investors clients is akin to a cardinal sin in the real estate investment business.

Lying to Lenders – Its a very common practice amongst mortgage brokers to make risky loans by getting appraisals to reflect a higher value of the property, than the real market value. Out-of- town lenders accept this appraised value, and make loans at 80% of the value to borrowers with marginal credit. As a result many lenders have been unknowingly making loans on property with no equity to homeowners who dont have the credit to support such a mortgage. These kinds of dealings result in an increase of the number of foreclosures. In this kind of a deal both the lender and the borrower are losers, and the only winners are the mortgage brokers, who are paid to create these deals, and the unscrupulous sellers, who are, unfortunately, usually the investors, who sell properties at those high prices.

Buyer Beware – One of the heinous things is wholesaling of properties based on false figures. Wholesalers are supposed to leave a profit margin for the buyers, and not sell the properties at a price where the buyer cannot make any profits. Many wholesalers prey on newbie investors. Some wholesalers dont work with experienced investors, as they know that they can charge inexperienced investors thousands of dollars more for the same property.

Landlords ethics – People are sometimes concerned about the ways to tackle a neighborhood landlord. Their complaints generally are about how to make a landlord control, evict or talk to an unsavory tenant, or how to get him/her to maintain a property, which is in a bad condition.

While it may be true that a bad tenant is really not the landlords responsibility, as problems between neighbors are a part of life, and it is also very unfair to have different standards for landlords, about the condition of properties, than homeowners, but with the havoc that is caused by bad tenants and badly maintained properties, it is important for landlords to screen potential tenants carefully before renting them their property, and to see that the property is well-maintained.

However, these problems usually arise because owners who rent out their property generally do not have the skills, knowledge, or the proper connections to be able to solve such problems when they occur. And that most of them do not have the money to put aside to carry out the repairs that are inevitable. Hence, most of the conflicts between landlords and neighborhoods are caused by this lack of preparedness and the paucity of enough cash. But, no matter what the reason, it is true that it does end up in harming the business, and usually results in licensing, inspection, and occupancy laws being created to keep landlords under control.

Hence, as is evident, there is enough money to be made in this business if you take care of other people and deal with them ethically.

How to Get Started as an Apartment Real Estate Entrepreneur

By now you know you want to be in the apartment buying business. The process is fairly simple if you consider this three step plan:

STEP 1 – Decide which horse you’re going to ride:

First things first, before you can get started as a real estate entrepreneur, you have to know what you want to do. I know we all want to become insanely rich with commercial investments. But we have to have a focus. The questions to ask yourself are: Do you want to invest in duplexes, triplexes, quads? How about 10-units, 50-units, or 100-units? Are you interested in wholesaling, rehabbing, or retailing these properties? There are so many options. Trust me, you must have a focus or you will get caught in a web of great ideas that will lead you nowhere.

STEP 2- Don’t get caught up in paralysis of analysis.

That’s the worst success killer in the business. The best strategy is to learn the basics. Don’t confuse this with learning everything there is to know before you do anything. It is not possible to expect to be an expert before you begin. It took me seven months do my first deal. That’s right! Seven months. I overanalyzed each and every step. I made the mistake of focusing all of my attention on this one deal. There was no guarantee that this deal was going to close, but I still didn’t consider looking at any other deals during this time entire process. In my case I was lucky. The deal did close and the end result was great. I ended up netting $25,000 at close. But think about all the wasted time I did over analyzing deals. Better yet, think about all of the potential deals and money I could have considered, if I had looked at other deals.

STEP 3 – Proceed immediately to your first deal.

If you want to become a commercial real estate investor, then keep in mind that there is no such thing as lack of time. Every human being has the same number of hours in a day as you do. To become an successful entrepreneur, it is important to choice carefully what you do with your time. You must determine exactly what you want to do and give it your laser beam focus. Keep in mind that it’s OK to fear failure, but you must give yourself a chance. Occasional failure is good as long as you are failing forward and learning from it. Lastly, go after your first deal. It’s your future and the only way to predict your future is to create it!

And . . . Always Remember, You Can Replace Your Income With One Deal!

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Learn How To Wholesale Real Estate By Rob Swanson

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The Top 3 Real Estate Investment Strategies

There is a lot of information out there about real estate investing. This information can be sometimes confusing, because it is never really clear what the best investment strategies are. This article focuses more on the best strategies that will work in the current real estate market. This is a biased market skewed more towards buyers. There are many homes for sale out there, however, they have very few people currently looking for a home to buy. Therefore, every investor in the market today needs to use those strategies that are most likely going to succeed in this market. He or she needs to focus more on strategies that are most likely to attract buyers or renters to their properties. Here are the 3 best options.

1. Buying for long-term hold: this involves buying a property with the intention of renting it out for several years prior to selling the property. They real estate investor in the situation looks for homes that have been deeply discounted, buys these homes, and then turns around and rents them out with positive cash flow. Their goal here is to make at least $200 a month after paying all of the expenses, which include the mortgage payment on the home, taxes, insurance and any other expenses related to maintaining the property. The advantage of using this strategy is that the tenants end up paying down the mortgage for the landlord. The home builds equity with time and is eventually owned free and clear by the landlord after several years of renting the property. The key here is to buy the property at a discounted price and rent it out with positive cash flow.

2. Buying for short-term flip: this involves buying a property at a great discount with the intention of selling it right away for a quick profit. The investor here buys the property with at least a 30% equity. He or she then turns around and sells the property to another investor leaving a 10 to 20% equity for the new owner. This is called wholesaling. This strategy used to be very popular a few years ago. It is still being used today but it’s not as popular as before. The key here is to buy the property only after you have already located a buyer. The best way to do this is to build an e-mail list of potential buyers. Another option is to borrow a list from someone else. Here is the step-by-step process: you build an e-mail list or you locate the list owner, now you locate a property with significant equity, you collect details about the property and send out an e-mail to your list, you now close on the deal and then turn around and sell it to the end buyer for a profit.

3. Using the lease purchase as an exit strategy: in this situation, you are buying a property with the intention of renting it out for one or two years prior to selling it. The first step here is to buy a property at a discount. You then locate a buy/renter who signs to agreements: the first is a lease agreement for about two years, the second agreement is an option agreement. The buyer has the option to actually close on the deal within one or two we years. The investor cashes out at the end of the option agreement. The advantage of using this strategy is that you get very good tenants who actually take care of the property while paying a higher than usual rent. Thus you get positive cash flow and you serve the property at a huge profit within one to two years. This is one of the best options in the current market conditions.

Why This is the Best Time to Invest in Real Estate Since the Past 35 Years

All over the news media, 11 o’clock news and magazine you hear about the housing crisis across America. Home sales decreased at record lows.

Foreclosures at an all time high. Subprime market going south. Sounds like doom and gloom doesn’t it?

Real estate market analysts will tell you that all real estate has peaks and valleys. We have recently gone through a seller’s market overall across the nation for the past couple of years. Well, we are now in a “buyer’s market” which means opportunities to purchase real estate are better than ever.

The last time we had this kind of market was back in the early 90’s. Prior to that, it was the early 80’s.

Well, I am here to tell you why this is absolute BEST time to purchase real estate compared to the previous market cycles in the past.

Read on…Why?

Reason #1:

There are massive foreclosures and things are getting worse. The large number of foreclosures is due to a number of factors which I will explain in a separate article but lenders were literally lending money to people they really weren’t supposed to and in ways that got them in trouble such as using ARM loans (which stands for Adjustable Rate Mortgages) which will adjust in value after a short term like 3 to 5 years. Borrowers borrowed too much and over-leveraged. Housing prices sky-rocketed especially in places like South Florida. Therefore, when the market shifted, foreclosures have become prevalent! Therefore, there are tremendous buying opportunities now due to the prevalent distressed properties and banks that are willing to sell the mortgage at a discount.

Reason #2:

More people than ever need homes and need owner financing. Since many people have lost their homes and the lending institutions are unable to borrow to folks with less than stellar credit, we have folks who are not able to qualify like they have in previous years. Therefore, they are looking for homes through owner financing and through terms that investors are willing to put forth. Therefore, that means investors have great opportunities to sell their rental properties using owner financing methods such as lease options and seller-financing.

Reason #3:

Many investors have been hit hard with the foreclosures because they borrowed too much and their investment properties have now turned upside down. They are now tight on cash and having a hard time selling their properties. Other “newbie” investors who are looking from the outside are getting scared due to the pessimistic media and watching other investors crash and burn. FEAR is looming in this marketplace. Therefore, many wannabee investors are not playing the investment game and even current investors are not very active. Therefore, even more buying opportunities are available to those investors who are active now.

Reason #4:

Interest rates are still considered “low”. Back in the last market dip, the interest rates were in the double digits so they weren’t ideal. Therefore, money is cheaper to borrow which makes it easier for you and your money partners to get into the game. Therefore, buyers can get more property now at cheaper interest rates.Wow!!! Are you getting excited?

For the first time in 35 years, we have all of these factors coming together and presents buying opportunities in today’s market like never before.

Folks, don’t look back and wonder what happened and wished you took more action. Go get a piece of the pie now! Learn everything you can about foreclosure investing. It is explained at http://www.ForeclosuresUnleashed.net. The doors of opportunity are knocking no, banging right now. Are you going to open them?

Uncovering Smart Real Estate Investing Solutions for 2009

You can create tremendous wealth in real estate regardless of the current market conditions.  While we’re in the midst of an investing climate that hovers somewhere between perilous and challenging (depending upon who you ask), there’s still a ton of money to be made.  To cash in on the profit potential that’s at your doorstep, you need to uncover the right solution.  It’s not as hard as you might think.

When the market was flying high, a real estate investor could do no wrong.  It was almost impossible to mess up a deal, and quite a few novice investors managed to turn a bad deal into a marginal-to-good deal by exercising a little patience and letting rapid-fire property appreciation correct their mistakes.  Those days are gone.  If you make the same mistakes now, you’ll feel the reverberations in your bones, and the reminder of your error will be staring you in the face every month when you look at the bottom line and cry yourself to sleep at night.

The real secret to investing success is realizing that successful strategies change with current market conditions.  While a quick fix and flip followed by a trip to the bank and a celebration dinner aren’t necessarily out of the question, your most successful strategies for 2009 will be different because market conditions are radically different.  The three most lucrative investing strategies for the coming year will be solution-based:

Wholesaling – You can find motivated sellers everywhere you look.  Needing to sell due to job loss, relocation, or possible bankruptcy, they are more willing than ever before to let you craft a workable solution that gets them out of the bind they find themselves in.  You can come to the rescue of desperate homeowners by putting properties under contract for pennies on the dollar and assigning your right to purchase to another investor, keeping a tidy profit for yourself in the process.  You solve the homeowner’s problem by creating profit potential for another investor – and earn a great pay day for yourself.

Short sales – With short sales, you get to play Superman – in duplicate.  Not only will you be helping a homeowner to avoid foreclosure, but you’ll also be doing their friendly banker a huge favor.  Banks are taking back record numbers of properties and bankers are desperate to get these properties off their books as soon as possible.  Desperation is a quiet breeding ground for great deals, so by negotiating on behalf of the homeowner, you help them to avoid foreclosure while helping the banker avoid yet another REO.  The payoff to you is a good property at a great price.

REOs – Once a lender has taken a property back into its inventory in foreclosure, the homeowner is out of the picture, but the property remains.  As banks watch their inventory swell, they want nothing more than to unload properties as quickly as possible.  The reason is simple:  A property in inventory is a massive liability to a lender.  Between carrying costs, lost profits, and vacant properties that are producing no income, lenders are faced with another problem: They can’t lend money to other borrowers, which tend to even further restrict their ability to turn a profit.  Your offer looks increasingly appealing the longer they have a property in stock.

These solutions are a recipe for financial success in 2009.  Learn how to capitalize on them today and this could be your best year ever!  If these strategies are outside of your comfort zone, you owe it to yourself and your future to learn how to take advantage of them today at www.reiconferences.com

How to wholesale real estate crap

See how Bob Norton negotiates low end houses in Indiana.

Birddogging is a Great Way to Start Wholesaling!

You can get started easily in wholesaling by becoming a birddog. Also, get a FREE lifetime membership at Realestateinvestor.com now!

Lonnie Scruggs – The Godfather of Mobile Home Investing

Kevin Toston, of REIforLife.com, talks to real estate investing pioneer Lonnie Scruggs. Lonnie has taught many of today’s most successful investors as well as authored several books. Lonnie also created the Lonnie Deal which shows you how to make extreme cashflow with mobile homes. Check out the video and continue to visit www.REIforLife.com now for free tools to help you explode your real estate investing business. Visit http now and get a FREE report explaining the 40 Most Vital Tips to Building a 6-Figure Real Estate Investing Business in Today’s Market!

top 3:Real Estate Investing – Can I Talk To You for A Second

www.totalfinancialliberty.com www.freehousescd.com real estate investing video training assignments shortsales, wholesales and wholesaling. Real Estate Investing Video Training. Discover the 3 critical components for finding motivated sellers and what you must do when you are talking to them on the phone.

House Flipping 101 with Jamel Gibbs Episode #1 (Baltimore MD Edition)

House Flipping is the fasting way to make money in real estate. Discover how to get rich flipping houses at www.HowtoFlipforProfits.com

So You are Unemployed and Want to Become a Real Estate Investor Right Now

These techniques should work in any country, city or area. The trick is to simply find the real deals. Let me tell you the quickest way you could start making money in real estate right away.

Call all the “We buy houses” classified ads and signs you see around your area and tell them that you are unemployed and would like to bird dog for them. Ask them for $100 when they sign contract to buy from seller and $400 more when they close ($500 is pretty typical amount). Ask them to let you go with them when they go see the property so you can get some experience. Also try to join you local investor group, in most cities they are $20 or less for each monthly meeting (it’s a bargain). Go visit your local section 8 housing office and ask for the list of landlords and contact some of the ones who deal in single family houses.

Also, go around and start looking for empty houses. Call real estate agents and tell them you are looking for investment properties. If you have lined up 5 or more investor buyers and you find a real deal one of them will snatch it up and pay you a bird dog fee. While you are out look for home for rent signs, call them, ask them if they buy houses, if yes get their phone, fax, email etc and send them deals too. If they don’t find out if they are looking to sell their rental homes. You will be able to find owner financed deals this way.

Shortly you will be able to know what properties to get under contract yourself and move up to wholesaling where you will make $2000-10,000 per deal instead of $500. It just keeps getting better from there.

If you are aggressive and get out and look for properties today, you could be making a few hundred dollars a week by next week, A thousand dollars a week within a month, and $10,000 plus per month within 6 months. These techniques work but they require work. Interestingly enough you could do a lot of this work from a bicycle if you had no car (but maybe not in Canada during the winter).

None of these techniques require cash or credit and will get you started in real estate investing right away.

Real Estate Investors – Three Investor Mistakes To Avoid

We all know that real estate is one of the best places to invest your money. No matter if your investing strategy is for capital gains or cash flow, real estate is the vehicle that can provide both. The nicest thing about investing in real estate is that a lender will give you money to buy property. Just ask your stockbroker how much she’ll lend you to by $200K worth of stock! 

This article will help you avoid some of the common mistakes that investors make. Unfortunately, every real estate investor out there has made investing mistakes in the past and some continue to make those same mistakes today. It’s just a part of learning (that’s life). The key is to minimize your mistakes, and more importantly learn from them. This short article will illustrate three of the most common mistakes to avoid when buying houses. 

The number one mistake to avoid is buying houses at the wrong price. Most people think of real estate as a speculation game. By this I mean they are buying at a certain price now because the market may be hot. These buyers are anticipating housing prices to appreciate rapidly. Although this method does work, it is very short sighted. This strategy is all about timing, and if you’re late then you’re in trouble. We’ve all witnessed markets that went up fast eventually came down almost as fast. The bottom line is that your profits are NOT made when the house is sold; however, profits ARE made on the front end (when you buy it right). 

The number two mistake to avoid is NOT having a buyers list. This is not just a beginner mistake. Even those that have been buying houses for sometime have made the mistake of not having a buyers list. Some of you maybe asking, “what is a buyers list?” The answer is as simple as it sounds. A buyers list is a predetermined network of people that are willing to buy property from you. These buyers may be wholesale buyers or retail buyers. Wholesale buyers are those that want to buy houses in “as-is” condition. They do not care to do any work that is needed to be done to they property. Their goal is often times to sell the house to a retail buyer. It is this retail buyer that is the ultimate end buyer of the property. They buy houses in “move-in-ready” condition. As you may already know, the majority of properties on the MLS are for retail buyers. 

The number three mistake to avoid is NOT having an exit strategy prior to purchasing a house. An exit strategy is a predetermined selling strategy that the investor uses before purchasing a property. For instance, a landlord has predetermined that before buying a 4-unit house she will sell it in 30 years. In this example, the exit strategy is to sell the house in the future after the tenants have paid for it. Another example of a predetermined exit strategy is for an investor to buy a single family house at a discounted price. Since the property is purchased at a discount, it can then be wholesaled to another investor who wants to rehab it for more profit. In this example, the original buyer bought it right (avoided the #1 mistake). The exit strategy is to wholesale the house to another investor (avoided the #2 mistake by using her buyers list). 

By avoiding these common mistakes, your chances of success are significantly higher. Does this guarantee that you will not make other mistakes? Of course not, but avoiding these three mistakes can save you a tremendous amount of time and money. These same strategies can also work for you in your area of the country.

Real Estate Motivated Sellers How to Talk To

www.freehousescd.com real estate investing video training assignments shortsales, wholesales and wholesaling. Real Estate Motivated Sellers How to Talk To

The Captain’s Guide to Wholesaling Training Program

Join Capt. Pete’s Webinar on “The Captains Guide To Wholesaling” where you will learn the “straight talk” from Capt. Pete himself on how to make cash wholesaling real estate!

So You Think You Want To Be A Real Estate Investor

Every day more and more people are deciding to become weekend real estate investors. Armed with the proper information and right training this can be a lucrative business. Jumping in and playing blind archery can be a very costly mistake.

All of the stories you hear about being able to buy real estate with no money and no credit are true, but doing it without the proper documentation and training can literally wipe you out overnight.

I don’t say this to scare anyone away from the business quite the contrary, just due your homework before you start making offers on property. Concentrate on a small area and learn it well find out what homes in that particular area are selling for now and what they have been selling for the past six month to a year.

The best way for a new investor to start is by wholesaling properties to other investors. This is done by finding a property below market value and selling to another investor. If you add a few thousand dollars to the price and leave enough for the other investor to make money you will have more buyers than you could ever supply.

Most investors would give their right arm to have someone finding properties for them to fix up and resell for a tidy profit. You see, investors are basically a lazy group and don’t mind paying you for doing their legwork for them.

Another profitable way is lease option or get the deed as I call it. Your key here as with any other niche of real estate investing is to be working with people who need to sell not people who just want to sell. You can find hundreds of sellers that want to sell just by picking up the classifieds.

This may come as a shock to some of you but you really aren’t looking for houses you’re looking for problems. Homeowners who are getting a divorce, a job transfer, military transfer, burnt out landlords that just want to get out of the business simply because they don’t know how to manage the property or the tenants. Get the idea?

Preforeclosures are another great way to make money as a real estate investor. In fact your highest paydays and most motivated sellers will be those who are in the preforeclosure state. Sellers in preforeclosure are behind on their payments, but the bank has not yet taken back the property. Come on now, can you think of anyone more motivated to sell.

Remember that you are doing a great service to these seller by somewhat saving their credit by not having a foreclosure on their credit report. Most people don’t realize the severity of a foreclosure or how long it stays on your credit report.

Their problems are just beginning at this point. Picture yourself as a landlord and an individual that has just been foreclosed come to rent or lease option a home. The foreclosure shows up and the first thing that pops into the landlords head is, if they won’t pay for their own home the sure as heck aren’t going to pay me.

Unfair, possibly but put yourself in the landlords shoes and then lets see how unfair it really is. So yes you really are helping the seller solve some of their problems and making a profit by doing so. After all most of us don’t start a business and intentionally not make money.

Heck even non profit organizations make money and a ton of it; if they didn’t how in the world would they possibly stay in business for very long.

So get off your high horse and wake up and smell the coffee, this is the real world we are talking about here.

Buying Junkers and fixing them up and then retailing them is great also if you are experienced at estimating cost or can do most of the work yourself so you don’t get raked over the coals by some contractor that wants to make a killing on your first rehab.

Just slow down and look before you leap by doing some wholesale deals and lease options before you decide you want to play with the big dogs in the tall grass.

Make certain to get you team in place such as your title company, attorney, plumbers, painters electricians. In other words all your tradesmen before you take the plunge and start doing property rehabs.

Take it one step at a time and you’ll be a professional real estate investor before you know it, without getting kicked in the teeth a half dozen times while you are learning.

House Flipping- Cash Buyer Tip #1- House Flipping 101 Episode #8 with Jamel Gibbs (Reading PA)

House Flipping is very easy to do when you’re dealing with Cash Buyers. Check out this Tip from Jamel Gibbs and boost your Real Estate Investing. Also, check out Jamel Gibbs Free Crash Course on Wholesaling Houses at www.HowtoFlipforProfits.com

Building an Effective Power Team to Run Your Real Estate Business Smarter and Faster

Once you start building your real estate investing business, finding opportunities and potential deals, you’re going to realize you can not do it all on your own, and even if you could you would still be better off delegating these tasks anyway.

One of the biggest mistakes beginning investors make is they try and do everything themselves or use the wrong people in the process. They think, “I will get my first deal done and once I make some money, then I will build a team”. Unfortunately, what usually happens is they get stuck trying to learn and do everything in a limited amount of time, then get discouraged by either getting no results, getting scammed or burned from doing it wrong then ultimately giving up.

It is important to understand you need to work smarter not harder. This is the only way to run a successful real estate business. Not only will this make it more profitable but also more enjoyable!

Though you will not need everyone for every strategy you are focusing on, here are the top ten you should establish relationships with when you are starting out (in no particular order):

1. Home Inspectors

2. Insurance Agents

3. Mentors

4. Mortgage Brokers

5. Property Management Companies

6. Real Estate Agents

7. Real Estate Appraisers

8. Real Estate Attorneys

9. Rehab Crews

10. Title Companies

Every professional whether an agent, attorney, appraiser, etc, makes their money through different methods but these fees are minimal when you consider the money you make in comparison as an investor!

When putting together your power team, here are some guidelines to follow:

• Make sure you work with those that have experience working with investors similar to yourself. For example, a real estate agent that primarily works with clients buying large multi-units when you are wholesaling single family homes will be probably not be a good fit.

• Make sure they have experience working in the area or vicinity where you are investing.

• They should have at least 2-3 years of full time experience in the area you are hiring them for.

• Do not depend on just one in each category. For example, having 2-3 agents, brokers and inspectors will give you more flexibility, a larger network of contacts, and more competitive options for different circumstances.

• Always ask for referrals so you can expand your team using the best people.

Finally, be sure to approach potential team members with a win-win mentality. For example, when calling you can say, “I wanted to find out what services you offer to a professional investor. I would be interested to meet and see how we can work together, and I would be glad to refer you to the rest of my team.”

You want everyone on your team to make money just from knowing you. Not only will they enjoy doing business with you, but you will be a higher priority in their business. Just like the other aspects of creative real estate investing, you need focus on creating win-win relationships. Success breeds success.

The bottom line is: The more you utilize the expertise of those around you, the more lucrative and *easier* your business will be. Period. Once you understand and apply this, you will be well on your way to achieve the fastest and most aggressive results possible. Remember to work smarter not harder!

Copyright © 2007-9 Creativerealestatehelp.com. All rights reserved.

Real Estate Investing – the Real Keys to Real Success

The real estate market can be fun, exciting, fast paced, scary, overwhelming, profitable, time consuming, and crazy. That’s quite a range of emotions for one subject! Even when things are done right, there can be moments of extreme anxiety, but you can make it through! I am not trying to scare anyone away, just prepare you. Real estate and property flipping is the most exciting business I have been involved in, and reading this article will help you get started in the right direction, and to avoid some common mistakes.

Let’s get right into it, and start with the basics. The first step is to determine what part of the business appeals to you, and also what part of the business you can get into at this moment based on your circumstances. Let’s start by reviewing a couple of options for those of you that have very little money to start with, or even no money. Later, we will discuss options for those of you with money to invest.

Getting Started with no Money

There are a few ways to get your foot in the door in the real estate business without actually having your own investment funds. The quickest and easiest way into the business is to become a “birddog” for investors. This simply means you find the deals, they buy them. You can earn a fee from bringing them what they are looking for. I recommend looking in the phone book, on the internet, and watching for signs that belong to an investor. Call these people and tell them what you are looking to do. Ask them exactly what they are looking for, and ask if they will work with you if you bring them a great deal. Nine times out of ten, they will say yes, and give you a good idea of what their investment formula is. Pay close attention, even if they don’t buy a property you bring them, you have just gained valuable knowledge about what local investors are looking for! Be sure to get something in writing regarding your payment, before you give them all the details of the deal!

Another way to start with little or no money is wholesaling. I don’t recommend this if you are a complete novice. Most wholesalers have this strategy: Tie up the property with a contract, find a buyer that will pay more than your contract, and you make the difference when it closes. Be sure your contract has an out in case your buyer does not close. If you have no money, you don’t want to have the seller try to force you to close on the property.

The third no money technique, and the way I broke into the business, is to create a partnership with someone that has money, but not the time to search for a property and put the deal together. Again, this is not for a complete beginner, you need to know the basics to ensure you actually profit from the deal! Form a “LLC” with the partner, and use that to hold the property you have chosen to purchase. Be sure to treat it as a business. Everything to do with the business is to be kept separate from your personal funds. If you are getting paid for anything, write an invoice, and “submit” it to the business. Keep good records, you will need these for tax time!

Investing With Your Money

OK, I realize there are still people out there that have money, and many investment books leave you out! Let’s look at a few options for you to get started.

First, you need to build a solid team. There are a lot of people that will work for you, for FREE! Truthfully, it’s not actually for free, but a lot of this business is based on commissions, so it is not costing you anything to have people working for you. In fact they are getting paid when they bring you a deal that will make you money. So you need to build a solid team. I recommend having a real estate agent on your team. They have access to bank owned foreclosure listings, and are your best bet to gain access to these properties. Foreclosures and REO’s are at an all time high right now, so it would be foolish to miss this opportunity.

Second, find a good “birddog”. Read above for details on that term. Find a young aggressive person that is really looking to make it in the investing business. Please be sure if they bring you a great deal that you actually close on it! Most people starting in the bird-dogging business don’t have money. Help them out, and they will be loyal to you. This is how you get the best of the best. They have the time, you have the money. It is a win – win relationship.

The next person to add is a banker. You may have money, but the more of your own money you can keep, the better. I suggest getting in with a local bank or credit union early on. As you move on to more deals, they will be comfortable continuing to lend to you. Be sure to speak with residential and commercial lenders to find who may be the best fit for your personal investing strategy.

Conclusion

This article barely touches the surface of getting started in the real estate and foreclosure investing business. Proceed with caution, double check all your numbers, and be extra conservative. Pass up a deal if it is not what you expected. Don’t get emotionally involved, remember that every property is just numbers in your spreadsheet! With that said, get excited, and go flip some houses. -Justin Razmus

Real Estate Investing Step #1 – Goal Setting

The number-one determinant of your success in real estate investing is your desire: your motivation as reflected in your goals and your plan.

Many people think success in real estate investing hinges on your understanding of contracts, laws, and financial concepts. I don’t believe that. The most successful people I’ve met have a lot of desire.

As a matter of fact, many of the super successful investors actually don’t know everything about real estate investing.

Many aren’t familiar with a lot of the concepts related to real estate such as wholesaling, lease optioning, limited liability companies, advanced analysis, or different types of contracts. They simply have a lot of desire; they go out and make things happen; they don’t worry about it – they just keep working their action plan.

When I started in real estate investing, I didn’t know these things either. But I did enough activities to experience enough successes.

The most important part of your real estate investing career is desire and motivation – whether you’ve been in real estate for 10 years, just starting out, or you’ve spent the last 10 years just thinking about getting started.

Now it’s your turn. Write down what motivates you. Remember, there are no wrong answers.

1. Why are you interested in real estate? – Is it to make more money, be your own boss, become financially independent, be able to take more vacations, get rid of your boss, create wealth for future generations of your family, build a retirement savings, make up for losses in the stock market?

2. How much money do you want to make? – Now be realistic, if you’re just getting started. Maybe you want to make an extra 20000 and 30,000 or even just 5000 extra a month.

3. What will you do with that money? – Pay off some debt, take a trip, purchase a toy, invest in the stock market, work part time, write down what difference that would make for you and your family.

4. What will be your motivating factor? – A picture of a beautiful island off the Pacific ocean, a brand-new Ferarri parked out front of your three car garage mansion, or that 5 carat diamond Tiffany ring your wife has been dreaming about – now take whatever that motivating factor might be and put a picture of it on your desk and look at it every day, determining that motivation will remind you of why you’re getting into real estate.

Remember, your #1 determinant of success is your desire and your motivation. This visual reminder will encourage you weeks down the road. If you’re having a bad moment, don’t get frustrated.

Just reread that card with your goal written on it and look at the picture of what you want. You’ll quickly be motivated again to keep on going. It will reignite that fire.

Financing Choices to Take Advantage of Todays Real Estate Market

Over the last few years the real estate market has undergone a serious and consistent downfall. For those who don´t understand this concept, they have been taking a hard hit to their interest. However, in this market of decline, there comes great chances of opportunity. The smart investor that gears themselves towards short sales, REO´s, wholesaling, and subject two type investing are sure to garner some lucrative benefits before the real estate market bounces back.

The best thing one can do for themselves is to have the cash readily available to make deals immediately. Hard money lending used to be where you borrowed and X amount of dollars, usually with no questions asked, and you repaid the money at a high interest rate. Don´t get yourself involved with hard money lending because going through this process you still have to overcome the same hurdles as with your traditional residential lending and you have to wait a long period of time before closing Basically this means that a substantial amount of time will be lost and the real deals will be lost. This process of hard money lending still works, it is just hard finding an honest lender to deal with.

Another option one can opt for to take advantage of the down real estate market is called private money. Private money is similar to old fashioned hard money lending. This process usually only works if you get the right person and the right scenario. For example, you can try and get someone to come off of their retirement account and hand out a large chunk of money and try and work out a deal with them that benefits both parties. However, it usually takes a long time to find someone who will agree to all of your conditions you lay out and who will be willing to hand out a huge sum of cash without wanting to be involved in every aspect of the real estate deal. Again, this is an option one can choose but for the most part, it is more of a hassle to do this then to go for another choice.

One of the most effective ways of attaining a positive position in today´s real estate market is to obtain unsecured lines of business credit. Most people consider this there last option but honestly, it works great. Most individuals that are set up properly can easily obtain cash lines that are one hundred percent theirs to do whatever they want with. This has proven time and time again to be the best way to capture the real estate market as it now stands today.

One does want to be careful going this route however. If things are done incorrectly at the bank, you can be easily denied and your credit score will take a unforgiving hit. In addition, your company can be blackballed for up to a year or in some cases red flagged forever. So do be careful and properly go over all the correct documentation before trying to attain any type of credit line. Using unsecured lines of business credit is one of the best ways to seize and control the current real estate market, you just want to make sure you obtain competent counsel before you attempt trying to get one.

The real estate market is going through a trying time right now. In the wake of this decline, one can easily take advantage of this period. Obtaining the right type of financing will surely help you make a lot of money.

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