Real Estate Investing

Back in the late 1990's and in the early part of the 2000's banks had tougher guidelines to purchase a property when using conventional financing. Banks would lend you money based on your debt to income ratio and your credit score. Back then, a maximum of 30 percent (sometimes up to 40 percent) of your income could be used toward a mortgage payment. Meaning, if your monthly income is $2,000, you could qualify for a mortgage payment around $600 including principal, interest, taxes, and insurance (PITI). Most investment properties required a 20 percent down payment and proof that you could afford the investment mortgage payment in addition to your residential mortgage payment.

In some cases, the banks would stretch the loan amount allowing 40 percent of your income to be applied toward the mortgage payment.

However; what if you have a car repair, medical bills, need a home repair, need to buy clothes, or anything else? Where does the money come from? What about trying to save for retirement or trying to care for ailing parents?

Sometimes life just takes over, you have a problem, you use some of the money that should be used for the mortgage payment, and next thing you know - you're one payment late, then two, then three, then the bank files foreclosure papers, and then everything spirals out of control.

Many investors bought rental properties with no landlord experience. When their rentals sat empty, they used mortgage money to keep up the rental payments or worse yet, they spent the rental income for their own bills and fell behind on investment properties, which often ended up in foreclosure without the tenants knowing a thing. Next thing you know, the tenant is being served eviction papers from the sheriff and must move in three days. It would stun you to see how many investors are going under right now - you are not alone.

If you are an investor losing your investment properties - it's okay. My advice for the future is not to buy any rentals unless you can afford to make the mortgage payments - in addition to your bills - for five months on all your rentals. For example - say you own five rental properties and the mortgage payment is $500 on each. This means your monthly commitment is $2,500 a month. Unless you can afford to pay $2,500 for five months, in addition to all your regular bills, do not become a landlord. I realize that this seems extreme because it is unlikely that all five of your rental would be vacant at the same time; however, it does happen. The great news is that in this program I am going to cover some great ways to turn your rentals into cash flow machines again.

If you look at the average life span, we live to be 75 or so. If you are in financial hardship and it takes you three years to recover, in the big picture, it's not that much time. When you recover and start over, you'll have many more good years than bad.

Our first thought is to tell you%u2026 good luck! Having been in this business for as many years as we have, we can tell you that finding a good, reliable handyman or contractor is a major challenge. There are some incredible people out there%u2026you just have to know where to look.

The best place to find someone who is both good and reliable is at one of the investor meetings. You can ask around and find out what kind of work he has done in the past. Believe us; other investors will be sure to tell you if a handyman or contractor has done a poor job.

Let's start with the basics. What is the difference between a handy man and a contractor? One can pull permits and the other cannot. A good handyman can do the same work as a contractor...however he cannot pull permits. By law, you are supposed to use a licensed contractor for all your jobs.

Contractors are licensed and insured, can hire subcontractors, and can pull permits.

When dealing with a contractor for the first time, use caution. Get a quote in writing. Make sure it covers ALL material, labor, permit costs, final inspections, and any unforeseen repairs that may arise. Put everything you want done in writing.

When making payment arrangements, we suggest paying with a "draw." A contractor may ask for 1/2 the payment upfront and 1/2 the payment upon completion. The problem with this is that he may have quoted you a job that will cost $8,000. Are you comfortable handing over $4,000 to a person who may "take the money and run"? Arrange a draw so that as he completes each phase of the job, you are able to inspect the work before you release funds. Offer bonuses if the job is completed on time and penalties if not. Any ethical contractor will have no problem with this arrangement.

Never, and we repeat never, pay a contractor in full until all final inspections have been completed and signed off on by the county inspector. Be sure all the work has been completed to your satisfaction. It is virtually impossible to get a contractor to come back and finish a small detail once he has been paid in full.

Take a moment to call the county licensing board to see if the contractor has had any formal complaints filed against him and if so, what the outcome was.

Once you find a contractor you like, treat him like gold. Believe us; he is worth his weight in it.

Everybody who starts a business is constantly aware, jealous, or leery of the competition right down the street. What are they up to? Why are they doing it? Here is an idea for you as you start your career in the lucrative field of real estate investing %u2026 go talk to them and find out for yourself! Don't be afraid or feel like you are losing an edge or some other inaccurate emotion, go down the street and find out what they are doing so you know what works!

The funniest thing about entrepreneurs is the constant feel that they must one up the competition or fall behind and be crushed forever. However, most people that become a massive success in the business world will tell you that they reached the point where they are because they attended an insane amount of conventions and seminars to find out how people got to where they were. The reason that people become successful is not by accident, it is by hard work and determination through a proven system, and you have to learn that system.

Join real estate investing clubs, attend real estate investing seminars, pick the brain of every real estate investing professional that you can come in touch with, you will not regret it! Introduce yourself to every person that you bump into and tell them what it is that you want to do; they can point you in the right direction. Once they know who you are and what you are looking to do they can add you to their mind's list of people to call when they are in that particular situation %u2026 this is what you need! Become the "guy who does" what ever it is that you want to do. Create a name for yourself and make a fortune in real estate investing.

I think the biggest fear new investors have is selling their property once the rehab is complete. There are so many wholesalers that finding a great deal is easy. With the many classes offered by home improvement stores, rehabbing has become a piece of cake as well. What scares folks is selling their property.

Do you need a real estate license to sell your property? Definitely not! As long as you have an interest in the property-owner, contract, assignment, etc. - you have the right to sell the property. One of the first steps you want to take is to place your property in the MLS. Many companies offer a discount listing. What this means is that they will place the property in the MLS for a flat fee instead of a percentage of the sales price. For example, you might pay $199 up-front to list the property instead of 6% commission when it sells. Although I have never had much success selling my properties through the MLS, I always list them. I have made many contacts with other investors and purchased other properties.
Next, you will want to place an ad in the newspaper. Use keys words to draw attention to your ad. For example, "seller will help," "seller desperate," seller will pay closing costs," "stop the foreclosure," "low monthly payments," and more. Buyers with little money and marginal credit (which is most of them) do not have as many choices. If you are willing to help them into a property with little or no money down and you did a good job rehabbing, your property will sell fast!

Another great avenue to quick sales is to have an open house. Many folks spend their weekend going from one open house to another in search of their dream home. You can advertise the open house in the paper, place signs at the roadside, and put flyers on poles. Many mortgage brokers will sit at an open house for you and pre-qualify your potential buyers. They are the best!
Whatever method you choose, remember to make the deal irresistible to the buyer to insure a quick sale.

Being a real estate investor in South Florida means being prepared to protect your self from potential frauds. There are so many scams, that it can be frightening to get started in this business! Just because someone holds a professional license of some kind, does not mean that they are honest. You can probably order one of these licenses on the Internet.

We know that it can be scary getting started in this business. We were new once, too. Many "seasoned" investors could not wait to sell us a house, showing us their comparable sales to prove the value. What do you do when you do not have the resources to protect yourself? We wanted to answer that question and share some valuable tips you can use each time you do a real estate transaction.

#1. Join your REIA & ask your leaders. Your local Real Estate Investment Association should have resources where you can ask for advice when something seems "fishy" or "too good to be true."

#2. Ask for I.D. When you are dealing with a seller that you have never met and the home is vacant, ask for the seller's I.D. Some scammers pretend to own vacant houses and trade deeds for money.

#3. Always place your deposit in your closing agent's escrow account. That says it all%u2026if the deal goes sour, you are not chasing your money.

#4. Your own attorney reviews all deals. Make sure your own attorney/closing agent represents you in every transaction.

#5. Check city liens. Always visit the local governmental agencies to find out about pending liens that may not show up on the title search. This can save you thousands. Ask us how we know!

#6. Get title Insurance, even in rehabs. If your name goes into the "chain of title", purchase title insurance. You only need one deal to go sour to pay for a lifetime of title insurance policies.

#7. Run your own comps - drive by the comps given you. Obtain comparable sales reports from your own sources when you are not sure of the area's value. Drive by each comp to make sure you are making a wise investment.

#8. Stay in control of your deal. Don't be intimidated by your seller. Protect yourself and stand up for your rights in the contract.

#9. Use your own mortgage brokers or money sources. Make these contacts before your first deal so that you are not pushed into using a money source you don't know. Many rush attempts to get financing can be costly.

#10. Contingencies can protect. If you feel uneasy about the transaction, be sure to use a contingency in the contract. A contingency is a clause, which binds the seller, but gives the buyer the right to cancel within a certain period of time.

Hope we did not scare you too much. We practice these tips each time we do a deal and we have learned many of these tips the hard way. By sharing these tips, hopefully you will not have to. This is a great business and we love it.

Bonus Tip #11%u2026when you do make an honest contact, don't lose it. Build on it and grow from there.

Where is your ideal place to live? This is a tough one isn't it? I mean, how can any of us truly know for sure that we've discovered the best place to live. Many of us typically like where we grow up, therefore we tend to think of it as "home," and maybe even end up living there forever. Then there are those small percent that absolutely loath where they grew up, and never care to go back. Regardless, finding that choice environment and home is no easy task. Furthermore, we want to be sure that we're not getting ripped off, and the value of our home will increase with time. These are the standard imperatives. Now, do you know any great real estate investing information that can get you well on your way? If you don't, I can tell you where to find some. Ever heard of cyberspace?

Where would you think to go for real estate investing information? How about your local realtor? Hmm, this is a tricky one. Anyway, probably your best chance at finding worthwhile real estate investing information is the World-Wide-Web. How convenient is that! All you need is your laptop and the sofa. In searching consider your own personal likes and dislikes. For example, my greatest issue revolves around schooling. Find a nice area with fabulous schools. This is always crucial when you have children. Furthermore, one of the greatest real estate secrets of all is finding an area with a low crime rate. Many individuals are searching for a place without a great deal of violence. It's called self-preservation. The best thing to do is start scanning the web for real estate investing information and ideal locations. Hey, you can even check out the website, The Investor's Edge University. It can help you get well on your way to finding that location of your dreams and can coach you too about real estate.

What do you know about buying a home? Are you aware of property value in different areas, school districts, crime rates, and weather issues? These are all things to consider when it comes to real estate. You especially want to know all there is to know if you're about to purchase a home, yourself. This is where a decent real estate course can come in handy. You don't just have to be in the business to take a real estate course. It can also be plenty beneficial if you're buying a home of your own. Especially if it's the first one.

Have you ever consider taking a real estate course? It had more to do with knowing how to buy a home in a prudent fashion. I mean let's think about this for a second. Do you actually have any idea what to look for regarding the real estate market? Hey, maybe you do and maybe you don't. It's a competitive and tough business out there. Most of us are just looking for the knowledge that goes along with purchasing a decent home. When taking a gander at the real estate market, we have a good idea of what to look for and what to avoid. So much depends on who your house will appeal to, or what sort of home you're in the market for. As I'm sure you're already aware of, different groups of people search for various types of homes. It's unlikely that a single man is going to be in the market for a four-bedroom, three-bathroom home. Why in the world would he need that kind of space? Furthermore, it's not realistic to sell a two-bedroom home to a family of six. Everyone is in the market for something different. In a real estate course you will also learn how important neighborhoods, schools, and crime rates are. Do you actually thing a nice family wants to move into a trashy environment with poor curb-appeal galore? Or one with horrible school systems? There are many crucial factors when it comes to buying and selling homes. All of which can be acquired in a decent real estate course. No matter if you're trying to become a real estate agent, or merely attain some valid knowledge for yourself, a real estate course is right for you.

Looking to acquire real estate? Finding real estate for sale can be a frustrating proposition if you aren't sure where to look. There are several ways one can find real estate for sale in their area - whether it be commercial property, residential property or vacant land.

The most common way of finding and viewing real estate for sale is to go through a licensed professional Realtor. Realtors are able to access local and national MLS listings, which is a database of real estate for sale that is entered by other Realtors. One must have a subscription and be licensed to access this information, which is why using a Realtor is especially advantageous. Realtors are able to enter the exact criteria a customer is searching for and bring up results of real estate for sale that meets their needs.

Realtors are best used for those consumers that lead very busy lives, those looking to purchase real estate for sale out of their area or out of state, those purchasing on a timeline, and those that are looking to purchase commercial property. Realtors do require a fee, which can be a drawback depending on your situation.

Another method of finding real estate for sale is looking for properties that are for sale by owner. This method has become much easier recently now that there are websites devoted strictly to displaying these properties. Most real estate for sale by owner is advertised in local publications, such as a local newspaper or real estate magazine. Check these often, as some sellers don't advertise regularly. If you know the exact location you are looking to buy, the best method for finding these properties is still probably driving around and looking for signs until these websites become more popular and widespread.

Finding properties that are for sale by owner can save quite a bit of money, as there are no Realtors or fees involved. Using this method is usually best for those that are leisurely searching, those looking to save money and are willing to wait it out, and those who know exactly where they are looking for a property.

Finding real estate for sale can take awhile, so one must be patient and not expect to find exactly what they are looking for right away through either method. Weigh the pros and cons of each method, and determine which kind of buyer you are. This will help you choose which type of method best suits you and will make the process of finding real estate for sale much less stressful.

This 10-CD set will ensure that you close deals on a consistent basis! Closing techniques are what separate the winners from the losers. Bill explains his secrets to consistent closings. Students are going from closing 1 deal out of 20, to 1 deal out of 2 just by learning how to speak to people! This is a must-have set, complete with student and teacher editions! Contact us

Where "Secrets of Closing the Deal" Volume 10 left off...is where this set begins! Full of updated information on new secrets of closing the deal, including the topics below:
Available now Vol. 11.

1. Your brain
2. Understanding our brain
3. Rejection, acceptance, and fear
4. Affirmations
5. Getting control of your mindset
6. Presupposing vs. Assuming
7. What is N.L.P. worth to you?
8. Your rewards

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Where " Secrets of Closing the D eal" Volume 10 left off...is where this set begins! Full of updated information on new secrets of closing the deal, including the topics below:
Available now Vol. 12.

1. The Handshake
2. Command Questions
3. Basic Selling
4. Why do Salepeople fail?
5. Steps to Staying Focused
6. What Your Customer Thinks

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Would you like to walk into any negotiating situation knowing exactly what to say?

This 4-CD set, with student and teacher written editions, will teach you what to say and do to maximize profits in real estate investing.

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Here are some of the topics covered in the program. It is a must-have program for any successful investor.

*Introduction to the authors
*The birth of Financial Freedom Through Foreclosures
*What's happening now
*Getting started
*Appearance
*Equipment
*Business structures
*General partnership
*Limited partnership
*Corporation
*Banking
*Put everything in writing
*Partnership agreement
*Finding a real estate agent, title company, mortgage broker, Attorney & Accountant
*Finding a contractor, inspection company and cleaning crew
*Miscellaneous team members
*Understanding ownership vs. debt
*The foreclosure process
*Deed Of trust states, mortgage states
*Attorneys' answers & defenses
*Types Of Liens
*Authorization to release
*Contract For Sale And Purchase
*Deeds
*Lenders & Programs
*Loans
*F.S.B.O.
*Marketing

On 3 CDs and the written material, Dwan covers pre-foreclosures, brokers' listings, code violations, probate situations, HUD & VA, auctions, and more deal finding favorites. Document Disc included.

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